Lunardi's is a small chain of family-run supermarkets in the bay area. They carry a very good selection of Italian/mediterranean foods, yet they are a full-size and full-service supermarket.
The newest one opened just a couple of weeks ago in southeast San Jose, in a neighborhood called "Evergreen." I visited them to scope them out, and to price a few items I typically buy at an Italian grocery. Here are a few observations:
Terrific produce section, with huge selection.
Very large meat selection, with some hard-to-find items like chicken backs, veal kidney chops and whole veal shanks.
Good but not exhaustive cheese and wine departments. I like Whole Foods better for cheeses.
Courteous, knowledgeable staff. Well-staffed, too.
Acme and semifreddi breads.
It's in a brand-new, nicely designed commercial area. It's trying to look like a well-preserved bay area small town and almost succeeds.
$14.99 lb. for parmesano reggiano
$23.99 lb. (yipes!) for prosciutto de parma
$3.98 lb. for whole veal shanks
$.39 lb. for chicken backs
$5.98 lb. for whole New York strip roasts
I think I'll be shopping here. I love Cosentino's, but their selection of non-food items is somewhat limited.