El Dorado County (Feb 5, 2024) – In a bid to navigate the challenging landscape of the grocery industry, The Raley’s Companies, a prominent player in the market, has announced a corporate downsizing, resulting in the layoffs of 47 employees. This move follows the elimination of 38 unfilled administrative support positions, as reported by the Phoenix Business Journal.
The affected positions primarily belonged to the administrative support sector, with 72 corporate employees receiving notifications about the job cuts last Thursday. However, in an effort to mitigate the impact, Raley’s has extended alternative roles within its stores to 25 of the affected workers, according to a spokesperson for the company.
This downsizing initiative has not spared various operating divisions, including Bashas’ and DTC produce subscription box fieldTrue. The decision comes at a time when Raley’s faces the headwinds of a challenging grocery market.
Chelsea Carbahal, spokesperson for The Raley’s Companies, explained to the Phoenix Business Journal that the company’s proactive approach is driven by “macroeconomic challenges” gripping the entire grocery industry. Carbahal emphasized that the California-based grocery giant is strategically addressing its company expense structure to maintain its position in the market. Despite a market contraction of 4 to 5% in the California grocery sector, she asserted that Raley’s remains strong, with a growing market share.
Notably, Raley’s did not respond to requests for comments at the time of publication.
The grocery industry in California is facing a 4 to 5% downturn, prompting Raley’s to take preemptive measures. Carbahal stated that the company anticipates the challenging market conditions to persist, necessitating a focus on expense management to sustain its market position.
In December, U.S. Census Bureau estimates revealed a 0.9% increase in spending at grocery stores compared to the same period in 2022. However, the grocery sales uptick was a modest 0.2% compared to the previous month. In contrast, overall retail sales exhibited a 0.6% monthly rise in December, with a substantial 5.6% year-over-year gain.
Raley’s, headquartered in California, acquired Bashas’ in Arizona at the end of 2021, forming The Raley’s Companies. Keith Knopf, formerly the head of Raley’s Holding Company, assumed the role of president and CEO. The company later revealed plans for a new Bashas’ Support Center in Chandler, Arizona, serving as the operational hub for several grocery store chains.
As of January 2023, former VSP Vision executive Tiffanie Burkhalter was appointed as the new CFO for The Raley’s Companies, succeeding Ken Mueller, who tragically perished in a plane crash in September 2022.
The Raley’s Companies faces a complex economic landscape, and the recent downsizing reflects its commitment to adapting and maintaining resilience amidst the challenges of the grocery market.
Raley’s Companies: A Legacy Rooted in a Drive-In Market Founded by Thomas P. Raley in Placerville Ca.
The recent announcement of layoffs at The Raley’s Companies marks a significant chapter in the company’s extensive history, which began on February 16, 1935. It was then that Thomas P. Raley laid the foundation for what would become a grocery retail giant in Placerville, California, under the name “Raley’s Drive-In Market.”
The visionary founder, Thomas P. Raley, steered the company through decades of growth and evolution until his passing on December 27, 1991, at the age of 88. Under his leadership, Raley’s Drive-In Market became synonymous with quality, service, and a commitment to meeting the diverse needs of its customers.
Raley’s Drive-In Market, from its humble beginnings, flourished under Raley’s guidance, establishing itself as a trusted name in the grocery industry. Raley’s commitment to customer satisfaction and innovative retail practices laid the groundwork for the company’s sustained success over the years.
Raley’s leadership and impact extended beyond the business realm, making him a respected figure in the community. His legacy lived on through the company he built, which continued to thrive and adapt to the changing landscape of the grocery market.
While the recent downsizing reflects the contemporary challenges faced by The Raley’s Companies, it is essential to acknowledge the enduring legacy of its founder, Thomas P. Raley. The company’s roots in Placerville, California, continue to shape its identity, even as it navigates the complexities of the modern grocery industry.
As The Raley’s Companies addresses the macroeconomic challenges of the present, it does so against the backdrop of a rich history that began with a small Drive-In Market in 1935. The vision and values instilled by Thomas P. Raley remain integral to the company’s identity, emphasizing its resilience in the face of change.
