HomeFinanceAn 85-year-old grocery store chain closes only location in this area

An 85-year-old grocery store chain closes only location in this area


Groceries are a daily necessity that people cannot live without. Yet, when an entire community loses its only local full-service grocery store, thousands of families are left scrambling to find alternative places to shop for their essentials.

Food City permanently closed its 2950 S 6th Avenue location in South Tucson, Arizona, on October 3, after nearly 25 years of serving the community and being the brand’s only store in the area.

While the grocery chain offered customers alternative store locations, the nearest options are over three miles away and require a car to reach, making them inconvenient for local residents who don’t have a vehicle.

Nearby Food City stores

  • 1740 W Ajo Way
  • 2000 E Irvington Rd.
  • 1221 W Irvington Rd.
  • 428 W Valencia Rd.
  • 1225 W St. Mary’s Rd.

Food City’s history began in the 1940s when its first store opened in Phoenix. In 1993, ownership was passed on to Bashas’ Family of Stores, and in 2021, Bashas’ was acquired by The Raley’s Companies. Since then, the grocery chain has expanded to around 45 stores across Arizona.

Despite multiple changes in ownership, Food City has remained a family-owned brand, maintaining its commitment to Hispanic culture through its products and community-focused initiatives.

Food City closes its only location in South Tucson after 25 years.

Image Source: Shutterstock

Food City’s reason for the store closure

Food City told 13 News that the sudden store closure was a financial decision, but didn’t reveal additional details. The city of South Tucson is currently seeking a new tenant for the vacant space, but no official announced about who might take over has been named.

South Tucson has a population of more than 4,600 but fewer than 360 businesses. The median household income is around $33,700 annually, the unemployment rate exceeds 44%, and about a third of the residents live below the poverty line, as reported on the city’s government website.

Given these demographics, operating a large-scale grocery store may have been financially unsustainable and less profitable than most of Food City’s other locations. This might also be why few businesses have committed to opening in the area, which has become a growing problem. 

Related: Walmart announces unexpected store closure

The Economic Innovation Group notes that communities with persistent poverty often struggle to attract new businesses due to limited local resources, insufficient infrastructure, and low economic capacity.

“Most persistent-poverty communities are by definition resource-limited, with many needs and a comparatively small tax base given their economic distress. Limited capacity makes it difficult to do basic economic development work, ranging from applying for federal grants to attracting new businesses,” said the Economic Innovation Group. “The poor condition of their infrastructure degrades their quality of life and discourages potential residents and businesses from locating within the area.”

Grocery store closures become a national trend

Food City’s closure is part of a larger wave of shutdowns across the retail sector. Facing economic uncertainty and trade pressures, many retailers are cutting costs to remain profitable.

U.S. store closures are projected to surge to 15,000 in 2025, more than double the 7,325 closures recorded in 2024, according to Coresight Research.

Already this year, the research firm has tracked over 2,000 planned closures, with major U.S. retailers announcing 29.6% fewer openings and 334.3% more closures compared to the same time last year as of January 17, 2025.

Even retail giants are not immune to this disturbing trend. Walmart  (WMT)  recently revealed it will close a store and pharmacy at 1900 South 314th Street in Federal Way, Washington, on October 31, affecting around 250 employees.

Like Food City, Walmart offered alternative nearby locations, but the closest store is also around three miles away, making it difficult for consumers without a car to shop there.

The closure of Food City in South Tucson highlights a growing issue. As grocery stores vanish, families in economically vulnerable communities face increased barriers to access affordable, essential goods. 

Related: 111-year-old grocery store chain announces major closures in 4 states

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