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Supervalu-owned Bristol Farms will close one of its 14 California stores next month, shuttering the Redondo Beach unit that it has operated for the past decade.

While Bristol Farms management is not commenting on the closure, local media reports suggest that there are two possible reasons for the move.

One, the recession has been tough on Bristol Farms, creating an economic environment in which its customers would buy fresh foods there, but go across the street to Albertsons - or other nearby, more price-driven chains - for daily grocery needs.

Two, rumors that the landlord wants to redevelop the location as a mixed-use development that would include condos.

The store is scheduled to close down on August 19. Bristol Farms will continue to operate 13 stores, all but one of them in Southern California. (It has one in San Francisco’s popular Westfield Centre.)
KC's View:
The betting here is that the real reason for the closure is some combination of the two reasons. Sometimes, the stars align and it makes sense to step back and regroup in strategic places.

The bigger question for me is how long Supervalu hangs onto Bristol Farms. Because there would seem to be no way that the service-oriented fresh foods-driven chain fits into the Save-A-Lot model seemingly favored by Supervalu CEO Craig Herkert.