When a Petaluma supermarket closes, which errand goes first? At the Raley's next to Trader Joe's on the east side, the pharmacy counter goes before the grocery aisles. The two closing dates are about five weeks apart.
The Press Democrat reported on Nov. 6 that the pharmacy will close by Dec. 16. The store itself closes over a two-week period that ends Feb. 6, 2027, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state Employment Development Department. In one stretch of the corner, the closure leaves a big building empty. In another, an empty building has just been filled. The Kmart building across the parking lot came back in 2026 as three separate stores, and that pattern hints at what this corner is turning into.
The closing calendar, as it stands today
Raley's announced the Petaluma closure in August as part of a downsizing that will close at least six stores in California and Nevada by June 2027. Back then, the store was expected to close on Jan. 26. The WARN notice now sets a longer wind-down, and its Feb. 6 end date comes 11 days after the Jan. 26 date given in August.
- By Dec. 16, 2026: the Raley's pharmacy closes.
- Jan. 23, 2027: Raley's begins closing the store.
- Feb. 6, 2027: the closure is complete.
So the store is still open through Thanksgiving, Christmas and New Year's, and it will be the last holiday season for this location. The WARN notice says about 40 team members will be affected, including 21 clerks. Carol Barsotti, Raley's chief marketing officer, told the Petaluma Argus-Courier that "a variety of factors contributed to these closures, including local market conditions and the long-term financial sustainability of these locations."
The pharmacy counter leaves first
The Dec. 16 date counts for more than it seems because Petaluma has already lost pharmacies. The Press Democrat noted that the North Bay lost several in 2022 and 2023, including at Lucky Stores locations in Petaluma. That's why the Lucky at 939 Lakeville Highway still works for groceries but won't take over a prescription routine.
Raley's runs a prescription transfer page on its website. These are the pharmacy counters on the east side and along the Kenilworth corridor, as each company lists them:
- CVS Pharmacy, 291 N. McDowell Blvd. This is the closest option. CVS is an anchor at Plaza North, the shopping center at the northwest corner of N. McDowell Boulevard and E. Washington Street.
- CVS Pharmacy, 365 E. Washington St.
- Safeway, 389 S. McDowell Blvd. The store is open 24 hours and lists its own pharmacy hours and prescription services.
- Target, 401 Kenilworth Drive CVS pharmacy appears among the store's in-store services.
Three of the four are CVS counters, two as standalone stores and one inside Target. Safeway at 389 S. McDowell is the only east-side supermarket on this list that still has a pharmacy inside the store.
The grocery aisles go next, and the replacements are narrower
After Feb. 6, no single store at this corner will cover fresh meat, a full produce section, a deli and national brands the way a traditional supermarket does. The stores that remain each do part of that job.
| Store | Address | What it covers |
|---|---|---|
| Grocery Outlet | Plaza North, N. McDowell Blvd. | Discount groceries, including fresh produce and meat, with name-brand stock that changes with the chain's buying |
| Trader Joe's | Next door to the Raley's | Grocery |
| Lola's Market | Near the Raley's | Grocery specializing in Mexican food |
| Safeway | 389 S. McDowell Blvd. | Full supermarket, open 24 hours, with pharmacy |
| Lucky | 939 Lakeville Highway | Full supermarket |
| Sprouts Farmers Market | 401 Kenilworth Dr., Suite 1040 | Grocery |
On the other side of town, Petaluma also has a second Safeway, the original Grocery Outlet at River Plaza on Washington Street, and the locally owned Petaluma Market on Western Avenue.
The new Grocery Outlet is the most recent change to this list, and the timing was close. The Argus-Courier reported that the store opened Thursday, Aug. 27, less than a week after Raley's announced it would close, and only a few minutes' walk from the Raley's. Mayor Kevin McDonald oversaw the ribbon-cutting ceremony at the grand opening.
Grocery Outlet runs on what the company calls "an opportunistic buying model." It promises 30% to 60% savings and says its stock includes "unexpected and rare finds" alongside fresh fruit, vegetables and meat. Because the stock changes with what the chain buys, the shelves won't hold the same items every week. That's also why the store works better as one of several grocery stops than as the only one. Each Grocery Outlet is run by an independent operator. Victor Soares runs the east-side store, and Michael Billeci runs the Washington Street store. Soares has worked in grocery stores since he was 13 and has learned every department of a supermarket.
The Kmart building shows how big boxes here come back
The new Grocery Outlet sits between Boot Barn and Hobby Lobby, and all three stores are in the building where Kmart operated for decades. The Argus-Courier reported in September that Kmart had closed about three years earlier.
The building didn't come back as one tenant. A City of Petaluma project record for 261 N. McDowell Blvd., filed by Gary Gallelli Jr. of Gallelli Real Estate, describes splitting the vacant 92,643-square-foot building into three separate commercial suites. The plan also called for new stucco with stone accents and metal awnings, a reconfigured parking lot with pedestrian pathways, new bicycle parking, EV charging stalls, and 66 new trees in place of 37 that were removed. The Community Development Director's decision was set for on or after Jan. 6, 2025. By late summer 2026, all three suites were open.
So one general-merchandise store came back as three specialized ones: a craft store, a western-wear store and a discount grocer. Each one does a single thing that Kmart used to do along with everything else. The corner went through that process with Kmart, and with Raley's leaving it is now losing its full-service supermarket as well.
What the Raley's building could hold
The Raley's building is next door to Trader Joe's, a short walk from Lola's Market, and across the parking lot from the refilled Kmart building. The adjacent shopping area also includes Petco, Big 5 Sporting Goods, Starbucks, El Pollo Loco, Massage Envy and Club Pilates.
Onita Pellegrini, CEO of the Petaluma Area Chamber of Commerce, told the Argus-Courier that the closure "is certainly a loss for our community and for the employees and customers who have made it part of Petaluma for so many years."
"We hope that the location will ultimately bring another strong business or community-serving use to Petaluma."
The Kmart building took about three years to go from closed to three open stores, so its history shows how long that kind of turnaround can take at this corner. In the meantime, the dates that matter are Dec. 16 for the pharmacy and Feb. 6 for the store.
A change like this often comes up when people talk about selling their homes, because a big building turning over at the end of the street can affect how a neighborhood feels day to day. If you live near McDowell and East Washington and want to know how changes like this can affect a home's value, The Spaulding Group can walk you through it. Start with an instant home valuation, then give us a call to talk about your part of the east side.
