Grocery Outlet store closures are set to reshape the discount grocer’s footprint through the end of fiscal 2026 as the company moves to shut 36 underperforming locations, or about 6% of its fleet. Most of the closures are concentrated in the East, where 24 stores are scheduled to close, yet the company said it is not leaving any state and still sees long-term expansion potential in the region.
Leadership framed the move as a corrective step after a period of overly fast growth. The company said the remaining Eastern stores are profitable, which suggests this is a targeted market reset rather than a broad retreat. That strategy is also evident in its ongoing growth plans.
The retailer ended the fourth quarter with 570 stores across 16 states after opening seven locations in the period. It now plans to open 30 to 33 stores and remodel 150 more in fiscal 2026, even as it absorbs restructuring costs tied to the optimization plan.
Recent results show why Grocery Outlet store closures became part of the company’s turnaround effort. Fourth-quarter net sales rose nearly 11% to $1.2 billion, but comparable-store sales slipped by nearly 1%, while operating and net losses widened sharply. Executives said consumer spending pressure, weaker value perception and supply chain strain weighed on performance, while the closures are expected to support long-term profitability, cash flow and annualized adjusted EBITDA.
