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A Grocery Outlet could be coming to the old Kmart spot in Arroyo Grande

How first-graders shop for groceries

Students from C.L. Smith Elementary School in San Luis Obispo shop for food at Grocery Outlet Bargain Market to donate to the Food Bank Coalition of San Luis Obispo County.
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Students from C.L. Smith Elementary School in San Luis Obispo shop for food at Grocery Outlet Bargain Market to donate to the Food Bank Coalition of San Luis Obispo County.

Good news, bargain hunters — a new discount grocery store appears to be in talks to open in Arroyo Grande.

Representatives for Grocery Outlet filed for a license to sell beer and alcohol at the old Kmart location at 1574 Branch St. on July 10, according to the California Alcoholic Beverage Control website. The license is still pending.

Arroyo Grande city planner Matthew Downing said in an email to The Tribune on Monday that the city has been in contact with a permit facilitator on the behalf of the company, but so far have “nothing official on them leasing space over there.”

Kmart closed its Branch Street store in Arroyo Grande in early 2018.

Since then, the property’s new owner, Rick Gambril of Arroyo Grande Commercial LLC, has been in the process of renovating the lot to fit a grocery store, 24-hour gym, hardware store and other retail outfits, according to previous Tribune reports.

“All of the other tenants remain undisclosed to the city,” Downing added in his email.

Requests for comment from Grocery Outlet representatives were not returned as of Monday afternoon.

The discount-priced grocery store is based out of Emeryville. It has more than 320 independently operated stores in the United States, including locations in Atascadero, Los Osos, Paso Robles and San Luis Obispo.

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