Supermarket chains have been locked in a battle against big-box retailers over the dominance of the grocery sector, and they have been losing the battle against Walmart for years.
Walmart is the top grocery retailer in the U.S., capturing about 23.6% of the market with over 5,200 stores and about $276 billion in revenue, followed by Kroger, which holds 10.1% of the market with over 2,700 stores and $147 billion in revenue.
“Traditional grocery continues to lose share to mass/supercenter and club stores while the market continues to be splintered among discount grocery, dollar, drug, and specialty channels,” a 2024 survey from the National Grocers’ Association revealed.
Grocery chains face array of challenges
Grocery chains have faced an array of economic challenges threatening store profits, including rising costs of goods and labor costs driven by inflation, changing consumer preferences, and lease rates that no longer make financial sense.
To remain competitive in the grocery industry, supermarket chains have closed underperforming stores and downsized operations to remain profitable.
Albertsons closes Vons location
Major supermarket chain Albertsons is closing more stores in 2026 after dumping about 20 locations last year, as the grocery chain said it will shut down a Vons in Escondido, Calif., by May 1, 2026, that did not meet company expectations.
The company did not reveal specific reasons for closing the store.
Albertsons on March 2 sent a Worker Adjustment and Retraining Notification notice to the California Employment Development Department and employees informing them that the company would close its Vons supermarket at 2345 E. Valley Parkway in Escondido, Calif., and lay off 65 employees by May 1.
Pharmacy shutters days earlier
The store’s closing will be a disappointment for many of its customers, especially those who use its drugstore services, as the Vons pharmacy is set to close earlier than the rest of the store on April 16, the San Diego Union-Tribune reported.
“Closing a store is always a tough decision and one we do not take lightly,” Vons said in a statement.
“Like other retailers, we continuously evaluate store performance and market dynamics, and with our focus on growth, occasionally it’s necessary to close locations that aren’t growing or meeting financial expectations,” Vons said.
After the E. Valley Parkway store closes, Vons will still operate three other stores in Escondido at 1000 W. El Norte Parkway, 330 W. El Norte Parkway, and 351 W. Felicita Ave.
Albertsons closes 12 Safeway locations
The Vons closing will come about six months after Albertsons closed 10 locations of its Safeway affiliate in Colorado, one in Nebraska, and one in New Mexico in November 2025, according to CBS.
Albertson’s also eliminated 380 jobs at its corporate offices in Arizona and California and said it would close 20 stores by the end of 2025.
The Kroger Co. said will close three store locations in California in March and lay off 171 workers, according to Worker Adjustment and Retraining Notification notices filed with the California Employment Development Department.
Chains close fulfillment centers
Grocery chain also in November 2025 closed nine fulfillment centers across the country and eliminated about 1,700 jobs. The company, which operates about 2,700 supermarkets across 35 states and Washington, D.C., also announced in June 2025 that it would close 60 stores over 18 months.
Another major supermarket chain owner, Ahold Delhaize USA, revealed that its Giant Food and The Giant Company supermarket chains would close six centralized e-commerce fulfillment centers located in Pennsylvania and Virginia, as the grocery chains transition to a local, store-first fulfillment network.
The Giant Company, which was established in 1923 in Carlisle, Pa., operates 190 stores, 133 pharmacies, 107 fuel stations, and over 180 online pick-up and delivery hubs in Pennsylvania, Maryland, Virginia, and West Virginia.
Vons supermarket chain was founded in 1906 in Los Angeles by Charles Von der Ahe and grew to 87 stores by 1928, according to the Vons website.
The chain was sold in 1929 as the Depression approached, but was restarted by Charles’ sons four years later. The chain grew to 159 stores and 16,000 employees by the 1970s.
Safeway stores bought the Vons chain in 1997, and Albertsons completed its purchase of Safeway and Vons stores in January 2015.
Related: Major national grocery chain closes 36 underperforming stores
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