Drive into Plaza North from North McDowell Boulevard, across from Lucchesi Park, and the end of the lot that was dark for years is open again. Boot Barn and Hobby Lobby have their signs up, and a Grocery Outlet sits between them. Farther down, in the same strip, Raley's is still open next to Trader Joe's. It is set to close Tuesday, Jan. 26, 2027, about three months after this post goes up.
When Raley's goes, Plaza North's big vacant anchor space moves from one end of the parking lot to the other. For anyone on the east side who does a weekly errand loop here, that shift changes the route more than any single opening or closing does.
The corner that sat dark for six years
Kmart opened at Plaza North in 1980 as the anchor of a 19-acre center. The 90,000-square-foot store included a dine-in restaurant and a garden department. According to the Argus-Courier, it was "for four decades the primary anchor business of Plaza North." Kmart closed in February 2020 as part of a nationwide pullback, and the paper reported at the time that it was the last Kmart in Sonoma County.
For most of the next six years the building stood empty. The exceptions were scattered stretches when the seasonal retailer Spirit Halloween leased part of the space.
There was one serious attempt to bring in a single large tenant. In early 2022, Home Depot proposed replacing the Kmart building with a 107,891-square-foot store and a 28,216-square-foot garden center. The Argus-Courier reported that the proposal was withdrawn months later. The city had adopted a zoning amendment requiring additional review for large commercial spaces.
What eventually filled the building was three mid-sized stores. By March 2025, city staff were reviewing building permits for Boot Barn, Hobby Lobby and a second Grocery Outlet, and an alcohol license notice from Grocery Outlet Inc. was posted in a window. A year-long renovation then divided the building into three units.
Three doors in about eight weeks
After six empty years, all three stores opened within roughly two months of each other this summer.
| Store | Opened | What it sells |
|---|---|---|
| Boot Barn | Early July 2026 | Western and work wear |
| Hobby Lobby | Officially open as of Friday, July 17, 2026 | Arts and crafts |
| Grocery Outlet | Thursday, Aug. 27, 2026 | Discount groceries, produce and meat |
Two of the three are national chains new to this site. Boot Barn is based in Irvine and opened its first store in Huntington Beach in 1978. It now has more than 400 stores and calls itself the country's largest western and work wear retailer. Hobby Lobby, based in Oklahoma City, has more than 1,000 stores.
Grocery Outlet has deeper local roots. James Read opened the first store in San Francisco in 1946. Starting in 1973, the company grew by having independent operators run their own stores. Petaluma now has two of them. Michael Billeci operates the existing store at River Plaza on Washington Street, which is staying open. Victor Soares runs the new one at Plaza North and has worked in grocery stores since he was 13. Mayor Kevin McDonald led the ribbon-cutting in late August.
According to the Argus-Courier, the chain promises savings of 30% to 60% on its items through what it calls "an opportunistic buying model," which offers "unexpected and rare finds" along with fresh produce and meat.
A few minutes' walk from the store that's leaving
Six days before Grocery Outlet's planned opening, Raley's announced it was closing its Petaluma store. The Argus-Courier noted that the new store is "within a few minutes' walk of the soon-to-be closed grocery store."
Press Democrat business reporter Natalie Hanson wrote that the closure is part of a wider downsizing. Raley's, based in West Sacramento, plans to close at least six stores in California and Nevada by June 2027, including stores in Brentwood, Roseville and Elko. It closed a store in Antioch in April. The Petaluma store has 48 employees, and the company said it would offer transfers to "as many affected employees as possible" before Jan. 26.
Chief Marketing Officer Carol Barsotti pointed to "local market conditions and the long-term financial sustainability of these locations."
For a regular shopper, the timing means this winter is a short overlap. Plaza North has three grocery stores close together right now: Raley's, Trader Joe's next door and the new Grocery Outlet at the old Kmart. Lola's Market, which specializes in Mexican groceries, is close by. After Jan. 26, Raley's drops out of that group, and the center's remaining grocery options are Trader Joe's and Grocery Outlet.
Where the full weekly shop goes after Jan. 26
The Raley's closure story listed the grocery stores Petaluma will still have: two Safeways, Lucky, Trader Joe's, Sprouts Farmers Market, the Grocery Outlets and the locally owned Petaluma Market on Western Avenue. Here is where to find them, with street addresses from the store locators where the chains publish them.
- Trader Joe's, 169 N McDowell Blvd, in Plaza North itself
- Grocery Outlet, the new store in the old Kmart building at Plaza North, plus the original at River Plaza on Washington Street
- Safeway, 389 S McDowell Blvd, farther south on the same boulevard
- Safeway, 701 Sonoma Mountain Pkwy
- Lucky, 939 Lakeville Highway
- Sprouts Farmers Market, 401 Kenilworth Dr., Suite 1040
- Petaluma Market, on Western Avenue
For a traditional supermarket trip, the Safeway at 389 S McDowell Blvd is on the same road as Plaza North. Shoppers who mainly went to Plaza North for Trader Joe's will see little change, and they now have Grocery Outlet's changing discount stock a short walk across the lot.
What fills the other end
No replacement for the Raley's space has been announced. The most recent update to the closure story, dated Sept. 23, names no successor. Onita Pellegrini, CEO of the Petaluma Area Chamber of Commerce, told the Press Democrat that she hopes "the location will ultimately bring another strong business or community-serving use to Petaluma."
The Kmart end of the lot shows how long that can take. That building sat empty from February 2020 until this July, and it ended up as three smaller stores instead of one big one. Across the center's 43 suites, the 2025 Argus-Courier coverage named smaller neighbors in the plaza, including Soban Korean Cuisine, iWashToo and Fruta All-Natural Ice Cream. That list is from March 2025, so check before driving over for a specific shop.
For now, east-side shoppers have about three more months of all three grocery stores at Plaza North. Raley's closes on Jan. 26, and the space next to Trader Joe's will be the corner residents watch next.
If you live near Plaza North and are wondering how this stretch of North McDowell might change over the next year, the team at Marks Realty Group is happy to talk it through. We follow these east Petaluma corridors closely and would enjoy hearing what the changes mean for your own routine. Book an Appointment whenever it suits you.
