OFFICIALS SAY THEY WILL NOT REACH THE BENCHMARK BY ONLY PLANNING FOR SMALLER HOUSING PROJECTS. >>> ANOTHER SAN FRANCISCO GROCERY STORES CLOSING UP SHOP FOR GOOD. THIS TIME IT IS THE SAFEWAY AT 350 BAY STREET, SITTING AT THE NORTH BEACH AND FISHERMAN'S WHARF. SOME SAY THA THAT WILL MAKE THINGS LESS CONVENIENT, BUT IT COULD BE TOUGH FOR THOSE IN LOW INCOME HOUSING NEARBY. MAX DARROW EXPLAINS. >> Reporter: WITH HIS REGULAR SAFEWAY ON THE BORDER OF NORTH BEACH AND FISHERMAN'S WHARF CLOSING ITS DOORS FOR GOOD, SHEPPARD SANDERS' TRIPS TO THE GROCERY STORE WILL SOON LOOK A LOT DIFFERENT. >> NOW I HAVE TO SPEND MONEY TO GO ELSEWHERE TO SHOP! >> Reporter: HE IS USED TO BEIN ABLE TO WALK TO THE STORE. >> IT WILL BE TOUGH, BECAUSE NO I HAVE TO CATCH THE BUS TO MARKET STREET OR THE EMBARCADER TO SHOP. >> Reporter: SANDERS SAYS THAT HE SHOPS AT SAFEWAY BECAUSE OF THE PRICES. >> NOW I HAVE TO SPEND AN EXTRA DOLLAR OR TWO TO GO SOMEWHERE ELSE TO SHOP. LIVING HERE IS REALLY EXPENSIVE BUT I LOVE LIVING HERE. >> Reporter: THE GROCERY STORE HAS BEEN PART OF THE COMMUNITY FOR DECADES. DANNY SAYS THE CONCERN THAT SANDERS TOLD US ABOUT OUR SHARED BY MANY IN THE AREA. >> IT IS ABOUT 20,000 RESIDENTS WITHIN A HALF-MILE OF THIS STORE. FOR THESE FAMILIES AND SENIORS, IT WILL BE MORE DIFFICULT TO GET AFFORDABLE GROCERIES ALL OF A SUDDEN. FOR RESIDENTS IN THE NEIGHBORHOOD, PARTICULARLY THE UNITS OF LOW INCOME HOUSING ACROSS THE STREET, IT IS A BIG PROBLEM. >> Reporter: UNLIKE SOME OTHER STORE CLOSURES IN SAN FRANCISCO SAFEWAY DOES NOT ATTRIBUTE THIS CLOSER TO CRIME CONCERNS. A SPOKESPERSON TELLS US THAT THE DECISION TO CLOSE THE STORE IS NOT ONE WE MADE LIGHTLY. WE CONTINUOUSLY EVALUATE THE PERFORMANCE OF OUR STORES, AND OCCASIONALLY IT IS NECESSARY TO CLOSE LOCATIONS THAT ARE NOT MEETING FINANCIAL EXPECTATIONS. SAUTER SAYS THAT THE AREA SURROUNDING THE SAFEWAY HAS STRUGGLED IN RECENT YEARS WITH VACANCIES, AND THIS WILL NOT HELP FIX THAT SITUATION. >> THIS WILL LEAVE A BIG HOLE I THE NEIGHBORHOOD. IT WILL MAKE IT MORE DIFFICULT FOR ALL THESE OTHER BUSINESSES THAT MIGHT HAV RELIED ON TRAFFIC FOR PEOPLE GOING TO OR FROM SAFEWAY. IT REALLY HAS COMPOUNDING EFFECTS. BECAUSE THIS IS SUCH A BIG DEAL WE ARE LAUNCHING A PETITION. NORTH BEACH NEIGHBORS IS LAUNCHING A PETITION TO BRING I ANOTHER AFFORDABLE GROCERY STORE. >> Reporter: FROM THE OUTSIDE LOOKING IN, SANDERS SAYS THAT A GROCERY STORE CLOSING MIGHT NOT SEEM LIKE A BIG DEAL. BUT FOR THOSE LIVING HERE -- >> IT HELPS PEOPLE LIKE ME SHOP AND GET MY GROCERIES, INSTEAD O GOING WAY OUT OF THE WAY TO SHO AND SO IT DOES MATTER. >> Reporter: A CHANGE IN THE NEIGHBORHOOD THAT WILL HAVE PEOPLE CHANGING THEIR ROUTINES. >> THE STORE IS SET TO CLOSE ON MAY 27th. THE SAFEWAY SPOKESPERSON TOLD