Bay Area grocery store set to permanently close after 50 years

After five decades of offering fresh organic produce and niche goods, Country Sun Natural Foods in Palo Alto will close its doors by the end of the year. The permanent closure, which was first reported by Palo Alto Online, is expected to occur around Christmas once store shelves and inventory are cleared out, CEO and general manager Scott Otte told SFGATE. According to Otte, the last few years have been tough on Country Sun as nearby office workers haven’t returned in full force. As a result, sales have remained 25 to 30 percent lower compared to what they were pre-pandemic.

“It’s not sustainable,” Otte said. “We’ve tried to hold on as long as we could.”

Otte was shocked when he learned about the forthcoming closure, especially because the store renewed its lease over the summer. Country Sun’s owners planned to sell the store to a new owner who would carry on the business. Around May, they got in touch with a prospective buyer, but two weeks ago the sale fell through. Days after the failed bid, Otte had to share the difficult news with employees — many of whom had worked at the store for decades. About a dozen staffers, including Otte, will be laid off and receive severance packages once the store closes for good.

“I told staff the day after I found out and as soon as I had time to process that the deal was not going to go through,” Otte said. “It’s time to face reality.”

The news was also a surprise to longtime customers who learned of the closure this week through employees and news reports. Otte shared that some patrons have recently expressed an interest in saving the store, but he believes that a purchase is unlikely now. Nevertheless, the grocery store remains listed on LoopNet for $5.25 million.

According to Otte, Country Sun first opened its doors at 364 California Ave. around 1974 before it moved to its current location around 1976. Otte started working at Country Sun in 1996. After a 27-year tenure, Otte said he’ll be searching for a new job — and a new grocery store he hopes will have many of the hard-to-find items at Country Sun.

“It’s a big loss,” Otte said. “I’m going to miss my grocery store — it was mine too.”