A California institution is preparing to shut its doors as the state's famously challenging economy keeps it from competing with the likes of Walmart and Amazon.
After 49 years in business, the family-run grocery chain O'Brien's Markets is calling it quits, with its two remaining Modesto stores expected to close this fall.
A total of 117 employees will lose their jobs, according to WARN notices filed with the state.
According to the New York Post, the Roseburg location might survive, thanks to a potential outside party who's interested in buying the store and keeping it running.
If the deal falls through, the store will shut by September 26.
Meanwhile, Dale Road Location will permanently close no sooner than October 4.
O'Brien's Market said in a statement that 'the current business climate' had forced them to make 'some tough decisions' regarding their businesses - and founder Chuck O’Brien decided this was a good time to retire.
They added that opting to close was 'the most difficult decision of all.'
O'Brien's Market describes itself as a 'family-owned small business,' serving the Modesto area for almost 50 years
O'Brien's Markets sells fresh produce, as well as gourmet cheeses, deli sandwiches, bakery items and alcohol
'O'Brien's Markets has seen a lot of changes in the grocery industry over the years,' said the company 'Some changes were within our control, others were not.'
The grocery store is running a 'retirement sale' for customers, with most products available for 25 percent off.
On Facebook, loyal shoppers shared their disappointment at the announcement, with one writing, 'OB's is the last of the truly locally owned, family-owned stores and its closure will be awful for the local neighborhood and the small businesses in the Roseburg Square.'
'I shop there almost every day,' another wrote. 'I run into neighbors and friends and know most of the employees personally. Every one I know is very sad regarding the closure.'
For some business veterans, though, the news of another small business closing is unsurprising.
Retail expert Marty Bauer told the Daily Mail ecommerce giants like Amazon and Walmart are 'extremely efficient' and hard to compete with.
That's because they can offer consumers 'low prices and high convenience.'
'Modern consumers prioritize maximum value over low prices,' Bauer said. 'This means that costs, while important, aren’t necessarily the deciding factor when it comes to buying.'
Regular customers shared their disappointment at O'Brien's Markets closing, some sharing well wishes with employees and the owner
Lawyer Jonathan Lazarow's previous private equity experience includes conducting the aisle, marketing, customer journey and activation strategy for a wide variety of grocery store chains.
He told the Daily Mail that scale is now a 'survival requirement' for grocery stores.
Walmart generated $276 billion in US grocery sales last year - 65 percent more than Kroger and Albertsons combined.
Costco gained market share every single year for five years running.
'Traditional grocers need the purchasing power, technology investment, and supply-chain automation that only national scale provides,' Lazarow said.
'But I also believe locally curated specialty grocers will continue to emerge and win a share of the wallet,' he added.
'The consumer who wants discovery, quality, and a differentiated experience will always have options - even if they’re a neighborhood chain.'
