Los Gatos Boulevard's Grocery Corner Is Rearranging Itself, One Store at a Time

A former Chevrolet dealership lot at 15650 Los Gatos Boulevard sat empty after the 2008 recession. It now holds a 43,000-square-foot Whole Foods, open 8 a.m. to 10 p.m. daily when it opened, according to the Los Gatan. Two blocks away, the space Whole Foods used for 32 years sits empty. Next door, the old Rite Aid is now a gym. At the Blossom Hill Road end of the boulevard, Nob Hill Foods is open as usual, on a lease its owner has chosen not to renew.

All four addresses sit on one stretch of the boulevard, and each move depends on the one before it. A corner once served by two neighborhood supermarkets is splitting. One much larger store now handles the big weekly shop, and Cornerstone Shopping Center is being rebuilt around smaller, specialty and wellness tenants. The handoff runs on a fixed schedule, and it ends in 2027.

Two Blocks North, Twice the Floor

Whole Foods opened at 15650 Los Gatos Blvd. on April 15, 2026, a couple of blocks north of its old home, the Los Gatan reported. The old store closed April 12, so the town went three days without one. Sand Hill Property Company developed the site, and the store shares it with the Tesla sales and service center, which opened the year before.

The size jump explains the rest of this story. The new building is 43,000 square feet. The Cornerstone space it left is 18,000 square feet, according to the Mercury News. The new store carries more than 2,000 items from California-based suppliers. It also runs three counters inside the building, according to the Whole Foods store page:

• WFM Coffee Bar, a full-service coffee shop with drinks made to order
• Los Gatos Pizza, with custom orders, daily specials, and vegan and vegetarian options
• Market Sandwich, offering signature combinations or build-your-own

A store that also serves coffee, lunch and pizza is built for longer visits than a quick stop for milk. Directly across the street, the move landed next to a long-running local business. Sheila Reno, manager and co-owner of Los Gatos Cafe, has worked there since before Whole Foods came to the Bay Area. She told the Los Gatan she welcomed her new neighbor.

"It's very beautiful. I'm excited for them. And it's nice that it's right across the street. I think it's good, because it will offer more options, like organic or specialty products."

Cornerstone Rebuilt Around Members

When Whole Foods moved, Cornerstone lost its grocery anchor. That came on top of losing Rite Aid, which closed every store it had after going through bankruptcy, the Mercury News reported. The center has stood at Los Gatos Boulevard and Blossom Hill Road long enough to appear in a 1967 photo in the Los Gatos Library's collection. Cilker, the Los Gatos firm that manages it, filled both empty anchor spaces within months.

The first replacement is already open. Club Studio took the 19,000-square-foot former Rite Aid at 15920 Los Gatos Blvd. It opened in early September and holds an official grand opening on Saturday, Nov. 14, according to the company's October announcement. The club has four boutique studio rooms. They include a HIIT-style class called CS4 that combines treadmills, rowers and SkiErg machines, and an indoor cycling class with a weight sequence built in.

The second replacement moves into the old Whole Foods. Gus's Community Market signed a lease for the 18,000-square-foot space at 15980 Los Gatos Blvd. and expects to open in spring 2027, along with its in-house cafe partner, the Mercury News reported. The grocer began in 1981 as Haight-Ashbury Produce, started by Gus Vardakastanis and his father, Dimitri. It runs five stores in San Francisco, and Los Gatos will be its first location outside the city. "Los Gatos is a special community with a strong appreciation for quality food, local businesses, and personal service," Dimitri Vardakastanis told the paper.

The two leases follow one plan. Cilker Vice President Mary Egan called the new tenants "a strategic repositioning of the property," according to the Los Gatan. Cilker CEO Keyston Smith said the center's revitalization "was built around creating experiences that serve Los Gatos." The space once used for a full-size supermarket will hold a neighborhood specialty grocer with a cafe. The old pharmacy has become a membership gym. Both are places people come back to on a schedule, which suits a center that no longer has to handle the corner's biggest grocery trips.

Spring 2027 Is When the Map Flips

The third change is the one that makes the timing tight. Nob Hill Foods at 15710 Los Gatos Blvd. has been at Los Gatos Boulevard and Blossom Hill Road for nearly 56 years. The Raley's Companies, its Sacramento-based owner, chose not to renew a lease that runs out in 2027. The Shelby Report lists the Los Gatos store as set to close in June 2027. A Raley's spokesperson said the company decided after reviewing the store's performance and current economic conditions. Los Gatos is one of several Raley's locations the company has adjusted this year. The Nob Hill in Mountain View closed May 29.

Combine the dates and the overlap shows. Gus's target is spring 2027, and Nob Hill's scheduled closing is June 2027. If both hold, the corner's newest grocer opens within a few months of its oldest one closing.

The Los Gatan summed it up this way: "The Battle of Blossom Hill grocers has ended before it had much of a chance to heat up." Nob Hill's decision came four months after the new Whole Foods opened across the road. By summer 2027, this stretch of the boulevard is set to have one large supermarket at 15650 and one specialty grocer at 15980. Today it has two full-line supermarkets.

The Stops That Stay Put

Not every grocery option in town is moving. The Los Gatan notes that Los Gatos also has a large Safeway on the east side of Highway 17 near downtown, plus two other stores. Lunardi's, the specialty grocer, is about five blocks north of the new Whole Foods. So the north end of the corridor now has two established grocers a few blocks apart. The south end, near Blossom Hill Road, is the area that changes when Nob Hill closes and Gus's opens a block away at Cornerstone.

That puts the next eight months in order. Club Studio holds its grand opening Saturday, Nov. 14. Whole Foods is open at 15650. Gus's is scheduled to arrive in spring at 15980, and Nob Hill's closing date is set for June. The corner's grocery routines will shift address by address, all along one stretch of Los Gatos Boulevard.

The team at Milestone Realty tracks changes like this because they shape how a street works day to day. If you own near Los Gatos Boulevard and want to talk through what a redeveloped Cornerstone could mean for your home's value, ask us for a free home valuation or schedule a consultation. We'll walk through it with you, block by block.