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The Grocery Corner at Los Gatos Boulevard and Blossom Hill Is Changing Hands One Lease at a Time

Drive Los Gatos Boulevard toward Blossom Hill Road this month and you pass three grocery addresses in a short stretch. The newest Whole Foods sits at 15650. Nob Hill Foods has anchored El Gato Village at 15710 for nearly 56 years. The old Whole Foods space at 15980, inside the Cornerstone of Los Gatos center, is waiting for a new name on the façade.

Over 2026 and 2027, each grocery and anchor space on this stretch has moved, is moving or has been re-leased, and the order of those changes matters to anyone who shops here every week. Gus's Community Market plans to open in spring 2027, and Nob Hill plans to close at the end of June 2027. If both dates hold, the replacement grocer opens before the departing one closes.

How the Shuffle Started With One Move Across the Road

The chain of changes started in spring. On April 15, 2026, Whole Foods Market opened a 43,130-square-foot store at 15650 Los Gatos Boulevard. That's more than double the 18,000 square feet it left behind at Cornerstone. The new store went up on a former Chevrolet dealership site next to Tesla. It has a full-service coffee bar, more seating, a larger dedicated parking lot and daily hours of 8 a.m. to 10 p.m. Its eateries include Los Gatos Pizza and made-to-order Market Sandwiches.

That move put Whole Foods directly across Los Gatos Almaden Road from Nob Hill. Four months later, in August, Nob Hill confirmed it would leave Los Gatos. The Los Gatan opened its story with the line "The Battle of Blossom Hill grocers has ended before it had much of a chance to heat up."

Raley's, the Sacramento-based company that owns Nob Hill, told the Los Gatan that the decision followed a review of the store's performance and current economic conditions. Raley's spokesperson Chelsea Carbahal told Grocery Dive that the company's latest round of closures reflected "local market conditions and the long-term financial sustainability of these locations."

The Los Gatos store is part of a larger pattern for the company. According to the Los Gatan, Raley's closed its Nob Hill store in Mountain View in May and its Roseville store in January. Grocery Dive reported that the Los Gatos closure was announced alongside three Raley's-banner closures in Brentwood, Elko and Petaluma.

Who Is Taking Over Which Address

Only a few hundred yards separate the addresses that matter, so the clearest way to read the corridor is building by building, north to south as the numbers climb:

  1. 15650 Los Gatos Blvd, Whole Foods Market "Los Gatos - Almaden." Open since April 15, 2026, in the larger building described above.
  2. 15710 Los Gatos Blvd, Nob Hill Foods at El Gato Village. Open now and expected to close at the end of June 2027. The store sits at Los Gatos Boulevard and Blossom Hill Road.
  3. 15920 Los Gatos Blvd, Club Studio at Cornerstone. A 19,000-square-foot fitness club in the space Rite Aid used before the chain's bankruptcy. It began operating in early September 2026.
  4. 15980 Los Gatos Blvd, the future Gus's Community Market at Cornerstone. The 18,000-square-foot former Whole Foods space, leased to Gus's for a spring 2027 opening with the grocer's in-house cafe partner.

The Los Gatan places Gus's one block from Nob Hill. In practice, people who now walk out of Nob Hill with a bag of groceries will have a replacement a short walk away.

Gus's Arrives From the Haight

Most Los Gatos households probably know Gus's less well than the other names on this corridor. Its roots are in San Francisco: the business started in 1981 as Haight-Ashbury Produce, founded by Gus Vardakastanis and his father, Dimitri. Today it runs five San Francisco stores, on Noriega Street, Haight Street, Harrison Street and Channel Street, plus Canyon Market. Los Gatos will be its first location outside the city.

The company says its stores get fresh produce delivered daily and carry organic and conventional produce, housemade sausages, fresh seafood, pantry goods, and deli and cafe offerings. Gus's sons, Dimitri and Bobby Vardakastanis, run the business today.

"Los Gatos is a special community with a strong appreciation for quality food, local businesses, and personal service. We are excited about becoming a part of the neighborhood." Dimitri Vardakastanis, co-owner of Gus's, as quoted by The Mercury News

Gus's is one part of a deliberate re-leasing of Cornerstone. Cilker, the Los Gatos-based company that manages the center, signed both Gus's and Club Studio after Whole Foods and Rite Aid left. Cilker vice president Mary Egan told the Los Gatan the two leases represent "a strategic repositioning of the property." Founded in 1945 as a family agricultural and real estate company, Cilker is a local firm working on a local center.

The Calendar From Here

The shift on the corridor happens over months, and the order matters for anyone planning their weekly shop:

  • Saturday, November 14, 2026. Club Studio holds its community grand opening at Cornerstone, with giveaways, local vendors and a chance to try the club. A ribbon-cutting with the Los Gatos Chamber of Commerce is planned ahead of the event. The club has four boutique studio rooms for strength, indoor cycling, hot yoga and reformer Pilates.
  • Thanksgiving and December 2026. Whole Foods at 15650 and Nob Hill at 15710 are both serving the corner. Nob Hill's announced closing is still months away.
  • Spring 2027. Gus's targets its opening at 15980, along with its cafe partner.
  • End of June 2027. Nob Hill's expected closing date in Los Gatos.

Grocery openings and closings can shift, so treat both 2027 dates as announced plans. On the published timeline, the corridor has three grocers for a few months in 2027, then settles back to two once Nob Hill closes. This holiday season is also the last one with Nob Hill on this corner, after nearly 56 years. Households that have bought their Thanksgiving groceries at Blossom Hill and Los Gatos Boulevard for decades still have this year and part of next to do so.

The Rest of the Weekly Map

The Blossom Hill corner isn't the only place in town to buy groceries, and two other stores round out the map.

Lunardi's Market is at 720 Blossom Hill Road at Los Gatos Boulevard, in the Kings Court Shopping Center. The Los Gatan describes Lunardi's as a specialty grocer about five blocks north of the new Whole Foods.

Closer to downtown, Safeway is at 470 N. Santa Cruz Avenue. The Los Gatan notes Los Gatos is served by two other Safeway stores as well.

Taken together, by mid-2027 the Los Gatos Boulevard corridor is on track to have a larger Whole Foods than it had a year earlier, a San Francisco family grocer new to the South Bay, a specialty market at Kings Court and a boutique-style fitness club in the old Rite Aid, with Nob Hill gone from the El Gato Village corner it held for nearly 56 years.

Retail anchors like these shape how a part of town works day to day, and that matters when you're deciding where to live or when to sell. If you'd like to talk about what the changes on Los Gatos Boulevard mean for homes near Blossom Hill Road, Riese Real Estate Group can walk you through the area block by block. Schedule a free consultation.

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