The company says it plans to transition to smaller stores. The firm that designed Apple stores will design a new look for Fresh & Easy.
According to our media partner the San Jose Mercury News, the seven Bay Area stores that will be closing are at:
Ten other stores in the area will remain open.
Los Angeles-based The Yucaipa Cos. bought the chain out of bankruptcy in 2013 from British retailer Tesco. Since that time, the company gradually changed the stores' look and introduced a new "click and collect" service in Las Vegas that allows shoppers to buy online and pick up the purchased items at the store.
Fresh & Easy said the service will serve as a test for a wider rollout.
The Associated Press contributed to this report.