Milpitas Nob Hill Store to Close

According to an article in the Sacramento Bee, Raley's, which owns various grocery store chains, has announced it will close two more of its northern California stores over the next few months - a Raley's in Rancho Cordova, and the .

The article states that Raley's cited increased competition from low-cost competitors as the reason for several recent store closures, and that Raley's has been attempting to renegotiate labor contracts with its union in an effort to lower operating costs.

However, some speculate that Walmart is supplying a big portion of the stiff competition that companies like Raley's are experiencing. 

The fact that Walmart is a non-union company means it can get away with paying its employees less.

In 2010, when Walmart announced it wanted to expand its McCarthy Ranch location in Milpitas to add approximately 20,000 more square feet - much of which would be in the grocery section - many City officials like Vice Mayor Pete McHugh and retailers in Milpitas.

Also interesting is the fact that, before the state's redevelopment agencies (RDAs) were dissolved recently, the City - meaning, the City could collect RDA money to improve and redevelop it.

However, Santa Clara County shot down Milpitas' effort to declare the shopping center "distressed," saying it was doing too well to be considered blight.

Would that decision have gone differently with the loss of Nob Hill? One may never know, now that RDAs are a thing of the past.