Southern California’s grocery landscape is set for a shake-up as Gelson’s Markets, a well-known independent grocer, has announced it will sell its Carlsbad location to Kroger’s Ralphs banner. The move comes amid a broader wave of retail closures and consolidations sweeping the United States, with major chains like Macy’s, Saks Off 5th, Carter’s, REI, and Yankee Candle all shuttering stores in response to shifting consumer habits, declining foot traffic, and persistent inflation.
According to a statement from Gelson’s, the Carlsbad store has struggled financially for several years. Despite determined efforts to turn the location around, it remained unprofitable, prompting the decision to sell. The transfer of ownership and operations to Ralphs is scheduled for March 9, 2026. For regulars who might be worried about losing their favorite local market, Gelson’s has reassured customers that its other San Diego-area stores in Del Mar and Pacific Beach will continue normal operations without interruption.
Gelson’s, founded in 1951 and headquartered in Encino, California, operates 26 premium markets throughout Southern California, as well as one ReCharge by Gelson’s premium convenience store in Santa Ana. The company has built its reputation on high-quality produce, meat, seafood, bakery goods, floral arrangements, chef-crafted meals from Gelson’s Kitchen, and a curated mix of local, specialty, and organic products. Select locations even feature in-store wine bars, offering a touch of luxury that’s become synonymous with the brand.
But the closure of the Carlsbad store is not a sign that Gelson’s is retreating from the market. Far from it. The grocer remains focused on expansion, with a new store set to open in Toluca Lake in early 2026. In addition, Gelson’s has recently ventured into nationwide shipping, launching curated artisanal cheese boxes priced between $99 and $119. These boxes are packed with delicacies like creamy brie, aged gouda, truffle-infused cheeses, and a selection of sweet and savory condiments, aiming to capture the attention of foodies across the country who may not have access to a Gelson’s location.
Gelson’s isn’t alone in making tough decisions about its physical footprint. Across the retail sector, a wave of closures is reshaping the American shopping experience. According to AP News, Kroger itself plans to close about 60 underperforming supermarkets across the U.S. over the next 18 months. This strategic move is designed to streamline operations, improve profitability, and free up resources to reinvest in customer experience. It’s a sign of the times, as even the biggest names in groceries adapt to a rapidly evolving retail landscape.
Other household names are following suit. Macy’s, the iconic department store chain, announced in February 2024 that it would close more than 100 stores as part of its "Bold New Chapter" regrowth strategy. By early 2025, Macy’s had already shut down 66 locations, including its Staten Island Furniture Gallery. The company’s investor relations team confirmed that at least 100 locations will be closed by the end of 2026, with the goal of focusing on stronger stores and investing in the customer experience.
Discount retailer Saks Off 5th is also paring back its brick-and-mortar presence. KTVU FOX 2 San Francisco reported that the company will close select locations in early 2026, with stores shuttering in Texas, Illinois, New York, New Jersey, Pennsylvania, Washington D.C., and Connecticut. Saks Off 5th described the closures as part of an optimization of its retail footprint—a common refrain as retailers seek to balance online and in-person sales channels.
Outdoor retailer REI has confirmed it will close three stores in 2026, starting with its Paramus, New Jersey location, followed by closures in New York City’s SoHo and Boston later in the year, according to Retail Dive. The closures reflect the ongoing challenge of maintaining profitability in high-rent urban markets, where shifting shopper habits and the rise of e-commerce have taken a toll on traditional retail.
Children’s clothing giant Carter’s, Inc. is also downsizing, with plans to close approximately 150 underperforming North American retail stores over the next three years. About 100 of those closures are expected before the end of 2026, as detailed in the company’s third-quarter earnings report. The strategy is aimed at consolidating operations and focusing on locations with the highest potential for growth.
Even specialty retailers aren’t immune to the trend. Newell Brands, the parent company of Yankee Candle, plans to close 20 Yankee Candle stores in the U.S. and Canada starting January 2026, as reported by The Street. The move is part of a broader productivity and efficiency plan, as the company seeks to adapt to changing consumer preferences and the increasing importance of online sales.
So, what’s driving this wave of closures and realignments? The reasons are many, but declining foot traffic, evolving shopper habits, and the pressure of inflation are at the top of the list. Retailers are finding it harder to justify the costs of maintaining large networks of physical stores, especially as more consumers shift their spending online. At the same time, those who do shop in person are increasingly seeking unique experiences and high-quality offerings—areas where brands like Gelson’s hope to differentiate themselves.
For Gelson’s, the sale of its Carlsbad store to Ralphs is both an end and a new beginning. While it marks the close of a chapter in one community, it also signals a renewed commitment to growth and innovation elsewhere. The company’s expansion plans, coupled with its foray into nationwide shipping, suggest that Gelson’s is determined to stay relevant in a rapidly changing industry.
It’s a story playing out across the country, as retailers large and small grapple with the realities of a post-pandemic world. Whether through strategic closures, new investments, or bold experiments in e-commerce, the future of retail will belong to those who can adapt—and, just maybe, surprise their customers along the way.
