CARLSBAD — Gelson’s Markets has agreed to sell its La Costa storefront to Ralphs, a subsidiary of Ohio-based grocery giant Kroger.
The California-based supermarket chain’s store is located in a shopping center at the northeast intersection of La Costa Avenue and El Camino Real, near Batiquitos Lagoon.
The transfer of ownership and operations is expected to occur on March 9, 2026, according to a release.
A spokesperson for Gelson’s declined to disclose the sale price. A spokesperson for Kroger could not immediately be reached for comment by phone.
The news release stated that the “store has faced ongoing financial challenges for several years, and despite continued efforts to improve performance, it remains unprofitable.”
Gelson’s leases the grocery store from a landlord. The 6.4-acre property — which includes much of the parking in the center — was purchased for $21.9 million in April 2018, according to county records. The property had a 2025 appraised value of $17.5 million, with the bulk of that valuation — $10 million — attributed to the land rather than the structures.
Gelson’s plans to continue normal operations at its Del Mar and Pacific Beach locations in San Diego County, according to the release.
The grocer also intends to continue normal operations at the La Costa store until the transfer and said it “intentionally sought a buyer [Ralphs] willing to retain as many team members as possible rather than pursuing a closure without transition opportunities.”
A Gelson’s spokesperson told The Coast News that Ralphs is handling decisions regarding which employees will remain.
