A California supermarket chain known for its bargain prices has announced the closure of dozens of its stores across the country.
The California-based Grocery Outlet said it plans to shutter 36 “financially underperforming stores” across the country as part of the company’s optimization plan “to improve operational execution, strengthen long-term profitability and increase cash flow generation.”
Jason Potter, President and CEO of Grocery Outlet, said the company made progress on its goals in 2025, but fourth-quarter results made clear they had more work to do.
“Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional in the fourth quarter,” Potter said in a press release.
“In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience.”
Potter’s said part of the restructuring plan would include the closure of dozens of stores that were “financially underperforming.”
“At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital,” the CEO said.
It is unclear at this time how many workers will be affected by the closures.
The store said net sales increased by 7.3% to $4.69 billion during fiscal 2025, according to a Fiscal 2025 Financial Summary.
However, it recorded an operating loss of $234.8 million and a net loss of $218.2 million in the fourth quarter of fiscal year 2025, per the press release.
The Emeryville-based company operates more than 560 stores across 17 states, with the majority of the stores in California.
Other states include Idaho, Washington, Oregon, Nevada, Pennsylvania, Maryland, New Jersey, Ohio, Delaware, and Virginia, per the company website.
It is unclear from the press release how many or if any of the grocery stores that are closing are in the Golden State by the closure of the 2026 fiscal year.
The California Post reached out to Grocery Outlet for further comment.
