Bold opening: After 25 years of serving Heidelberg’s gourmands, Leo’s Supermarket is set to close — but the story doesn’t end there, as new owners outline a bigger vision that could reshape the street.
February 22, 2026 — 7:30pm
Leo’s Fine Food and Wine, Heidelberg’s beloved gourmet supermarket on Burgundy Street, will shut its doors earlier than planned amid thinning customer numbers and dwindling stock. The site’s new owner, Banco Group, plans to replace the store with a fresh development that includes a new supermarket and five additional shops along Burgundy Street.
Despite the closure date of March 13 being confirmed by Mario Lo Giudice, managing director of Banco Group, he stressed that refurbishment work is underway and that the project will preserve a supermarket while adding new retailers.
A planning permit already allows for refurbishing the building to retain a supermarket and to incorporate five new shopfronts along Burgundy Street. “We are negotiating with several independent supermarket operators,” he told this publication.
When this masthead reported in June last year that the Burgundy Street store had been sold, management indicated that both the Heidelberg store and its sister location in Kew would shutter by the end of 2026. The new March closure date for Heidelberg has prompted strong emotional reactions from long-time customers.
One longtime shopper, Sandra Andary of Rosanna, who has known Leo’s for 16 years, called the news “devastating” and “unfair.” She highlighted the shop as a community hub, noting how familiar faces greet each other and how the store fosters connections that other retailers can’t match. Andary also cited unique products she would miss, such as Green Nation Life multipurpose cleaner and Earth Taste Life Himalayan Pink Salt, along with quality frozen berries, meats, bread, and milk.
Since the closure news emerged last year, Andary has observed falling customer numbers and a dwindling sense of attachment, a trend she attributes to the impending shutdown.
Gerald Sheahan, a Heidelberg resident and Leo’s devotee since the store’s 2001 opening, expressed disappointment at the news and the need to shop at Coles instead of Leo’s.
Fellow regular Steve Caddy said he’s saddened by the closure. While he purchases staples at Woolworths, he says Leo’s remains his source for higher-quality items like Sergio Valentino durum wheat semolina pasta, Irrewarra sourdough bread, and Ivan’s chunky Angus beef pies. He also praises the store’s herbs — dill, thyme, and tarragon — which he finds fresher and offered in larger quantities there than elsewhere.
Caddy also described Leo’s as a genuine community hub with a distinctive atmosphere, remarking on the always-curious mix of customers and a vibe enriched by fresh, diverse foods and a soundtrack of classic Italian songs that many residents say helped define Heidelberg’s character.
Looking ahead, it isn’t yet clear whether Kew’s Leo’s will follow Heidelberg’s lead and close by the end of 2026 as previously planned. In June last year, Orchard Piper announced plans to convert the Leo’s block on Princess Street in Kew into luxury housing, in a joint venture backed by billionaire James Packer. The new Kew development is also slated to include shops and a fine-produce offering.
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Would you like this piece to lean more toward the business implications of the redevelopment, or should the focus stay on the community impact and personal memories tied to Leo’s? Share your perspective in the comments.
