Raley's to open smaller, urban format in Sacramento

Raley's is looking to open smaller format stores geared toward urban shoppers. According to a spokesperson for the supermarket chain, the retailer is exploring several downtown Sacramento sites for farmer's market-style stores that will appeal to pedestrian-oriented shoppers.

"Raley's is looking at new ways to expand and grow in the Sacramento market," spokesperson Chelsea Minor told Sacramento Bee. "We feel like there is a lot of excitement around new development downtown. We are exploring various options downtown. We are excited to be part of it."

Raley's new store design will appeal to health-conscious shoppers and those hunting for local products.

The move would mirror other proposed or current urban-style markets in Sacramento that are following the recent trend. Safeway opened a new store in midtown in 2004 and Natural Foods Co-op is set to open next summer. In addition, a local developer is planning a Whole Foods, but Raley's would be the first major grocery chain to return to downtown.

Developing more urban-focused stores in Sacramento and around the country is an important focus for an increasing number of retailers trying to target this demographic. For instance, Target (NYSE:TGT) recently opened urban, small-format stores in Minnesota and San Francisco. Other retailers with urban-focused concepts include Orchard Supply Hardware, Shoe Carnival and Walmart (NYSE:WMT).

Raley's operates 137 stores in Northern California.

For more:
-See this Sacramento Bee article

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