For close to 60 years, mom and pop grocery store chain, Sam’s Food City, has been a main stay in Modesto, CA. However, at the end of February 2013, the business will close their three remaining stores in Modesto, Turlock and Livingston.
The closing was not a surprise because in September 2012, Sam’s Food City in Patterson at 125 South El Circulo Avenue was sold to Adnan and Saeed Ali Obaid, who are owners of La Fiesta, a popular grocery chain in Southern California.
The owners of Sam’s Food City complained about lack of resources to update and renovate the current stores. In addition, competition has risen with the addition of other grocery outlets such as Sprouts, Wal-mart Neighborhood Market and discount retailers such as the 99 Cents Only Store.
According to sources, the building in Modesto will be leased to a dollar store company. Another discount chain taking up the building may not be a bad idea considering the unemployment rate and economic deficiencies of the city.
Soon, it may feel like Modesto will be home only to the big retail chains, drugstore dealers and discount retailers. Local small business grocery shops such as Sam’s Food City are falling out at a rate faster than McClatchy stock value in the last 8 years, which is kind of sad and disappointing.