WEST SACRAMENTO (CBS13) – Embroiled in drawn-out contract negotiations with its union workers, Raley’s announced the closure of two more of its stores in Northern California on Friday.
The grocery chain based in West Sacramento said it will close its Raley’s in Pittsburg (1375 Buchanan Road) and a Bel Air in Woodland (1885 East Gibson Road) in mid-October.
Both closures will result in employee layoffs, although employees may have transfer opportunities based on seniority, a store official said.
“The decision to close the stores was made following a review by the company to identify stores where future sales would not be able to match increasing operating costs,” Raley’s spokesman John Segale said in a prepared statement.
“Clearly, the key to reducing costs is concluding our negotiations with the union. We must reduce our operating costs as quickly as possible so that we can effectively compete and continue to provide our customers with the highest quality products at the most affordable price.”
The Aisle 1 Fuel Station at the Bel Air in Woodland will remain fully operational after the store closure and customers will continue to earn fuel rewards at nearby Raley’s and Bel Air locations, the company said.
Earlier this year, Raley’s announced store closures in Rancho Cordova, Elk Grove and North Highlands.