CAPITOLA >> A grocery store reshuffling is in the works in Capitola with one brand getting ready to move down the street and another looking to expand its local footprint.

A representative from Grocery Outlet confirmed Wednesday that the large regional grocery chain is finalizing plans to take over the building at 1210 41st Ave. in Capitola once it is vacated by New Leaf Community Markets later this year.

Bill Coyle, Grocery Outlet’s vice president of real estate in the central and northern California regions, told the Sentinel that the company has signed a lease with the property owner and is moving through the permitting process with the city of Capitola.

“Ground up projects are next to impossible down there and so when a vacant building or opportunity presents itself, that is great for us,” said Coyle. “We think we have a different offering than they (New Leaf) do and we complement each other very well and so it’s a smaller store which is why they’re moving and it still works for us.”

Coyle said the new Grocery Outlet store will be in addition to the two locations that are already operating in Santa Cruz and Watsonville and his team has set a tentative opening date of August 2025, though the timeline will also depend on New Leaf’s moving schedule.

Architectural drawings are in process, Coyle said, but residents can expect the store to “closely resemble” what is offered in Santa Cruz and Watsonville.

“Shortly after they (New Leaf) relocate we will start a significant remodel inside and we’ll open next August,” said Coyle.

Last summer, New Leaf announced it would be moving down the street to the King’s Plaza Shopping Center and into the building at 1475 41st Ave. vacated by Lucky supermarkets last August.

In a January email to the Sentinel, New Leaf Brand Manager Lindsay Gizdich said the locally-launched grocery chain, purchased by New Seasons Market in 2013 and then merged with Good Food Holdings in 2020, is expecting to open in King’s Plaza in late summer or early fall.

“With the larger store, we will also be expanding our made-to-order options, having a bigger selection of organic produce, and continue to support the local producers on our shelves,” wrote Gizdich. “That means more money back to the community through our everyday 10% after-tax donations.”Gizdich added that New Leaf will continue to provide updates as its own opening timeline becomes clearer.

In addition to its location in Capitola, New Leaf has stores in Aptos, downtown Santa Cruz, the Westside of Santa Cruz and Half Moon Bay.

According to Coyle, Grocery Outlet operates 485 stores, primarily along the country’s west coast.