Mollie Stone’s in San Mateo is set to close

The closure comes in the midst of growing concern that as the city continues to approve new housing and commercial developments, access to full-service grocery stores won’t keep up, as they typically make developments less financially feasible than other uses, such as commercial offices. Depending on the type of building, cities are also limited in whether they can mandate the inclusion of grocery stores in the new developments.  

“As a family-owned and operated grocer, being able to run a top-quality market with industry-leading customer service and product variety is always our top priority, so this was not a decision we came to lightly,” Mollie Stone’s Markets CEO Mike Stone said in a press release. 

The press release cited “changing market dynamics” and “infrastructure limitations” as the reason for the closure, though Stone did not provide further comment. 

Residents near the Hillsdale Shopping Center — for which there are plans to eventually demolish it to make room for new office buildings and up to 1,670 housing units —  have frequently raised concerns about the current Trader Joe’s potentially moving to another location, however, the city is unable to require the developer, Bohannon Properties, to maintain a grocery store there. 

“It is disappointing to see another grocery store closing,” Dana Sahae, a nearby resident said. “It’s a good reminder for us all that the area around 42nd Avenue is prime for redevelopment.”

Many, including Sahae, were relieved after developers of the Concar Drive project confirmed the Trader Joe’s would be able to remain in its current location, and Woodlands Market confirmed in December that it will move into the former Draeger’s Market in downtown San Mateo.

“I’m cautiously optimistic that we can look forward to another grocery store,” Sahae said. “The need is definitely here.”

In South San Francisco, the developer SteelWave agreed to construct a new Safeway in response to citywide pressure to include a grocery store in the planned development that includes a biotech campus and 184 residential units. 

The San Mateo Mollie Stone’s location will begin discounting merchandise on Jan. 27 and will likely close within one to two weeks, Stone said via email.