Sprouts just opened in the old Tower/Rasputin location on San antonio and El Camino. They have a very nice layout, a good selection of foods, with plenty of easy parking--that coupled with the recent opening of Fresh and Easy in Mountain View has provided plenty of places to those of us that are fed up with the poor of excuse of a store that is the Midtown Safeway-small, poor selection, dingy etc.
Plus if I want large scale shopping there is the Safeway in Menlo PArk and there will also soon be a large Safeway in Mountain View where the Sears used to be.
I see no reason to try to grocery shop in Palo Alto.
Another interesting story--years ago when Lucky wanted to enlarge the Alma Plaza store, Piazza's was one of the stores that insisted that Palo Alto maintain the 20K square foot rule (since competition is frowned upon in Palo Alto). Since then they have expanded once and are now expanding again--surely they must be well over 20K square feet limit now. Draw your own conclusions and/or demonstrate with your wallet how you feel about that.