Grocery Outlet to close dozens of 'underperforming' stores

[Yo_Mama_Been_Loggin]

Grocery Outlet, the Emeryville-based discount grocer with a large Northern California footprint, said it plans to close 36 financially underperforming stores as it tries to improve profitability after reporting a steep quarterly loss.

The closures are part of a business "Optimization Plan" adopted by the company's board on Monday and expected to be "substantially completed during fiscal 2026," Grocery Outlet said in a news release Wednesday announcing fourth-quarter and full-year financial results.

"We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we're moving quickly," Jason Potter, the company's president and chief executive, said in a statement. "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. "

Grocery Outlet did not disclose which locations will be shuttered. The company, which has stores nationwide, also did not specify how many of the 36 stores are in California or the Bay Area.

https://finance.yahoo.com/news/grocery-outlet-close-dozens-underperforming-213011107.html

You'd figure with where the economy is a discount grocer would be doing better. Hope the one I shop at stays open.

[SheilaAnn]

1. I read that many in New Jersey were closing which stands to reason if you don't have a job nor any money.

[mwmisses4289]

2. "...closing our underperforming stores..."

Translation- any store in a "poor" zip code.

[shanti]

3. They closed mine last August

(Sacramento County) It really hit me hard, as I've been shopping at this particular location for a good 30 years. It was my go-to for many staples, and they had good spring planting starts for the garden. And it was only a quarter-mile away, very walkable if necessary.

I remember when it first started as Canned Food Outlet aka "Smashed Can Warehouse" in Yuba City in the 80's. Mostly seconds and dented canned food, a few staples and cheap jug wine. It felt like this when 99 cent store closed too, like the end of an era.

[BlueWaveNeverEnd]

4. Interesting..

[EYESORE 9001]

5. I was underwhelmed by Grocery Outlet when it opened a store in my region

Pared-down selection reminiscent of an ALDI-type store (includes with prices on name-brand items all within a few cents of Walmart (I checked the app). There’s simply too much competition in the area.

[Trueblue1968]

6. I shop at grocery outlet all the time. West coast.

[JI7]

7. A lot of people go to Trader Joes

[Yo_Mama_Been_Loggin]

12. I shop at TJ's also

TJ's has more variety but not necessarily better prices.

[lame54]

8. Not mine - please

[hunter]

9. With too many outlets it ceases to be an outlet...

... and they have to buy stock from the same sources as everyone else.

It used to be you could find a lot more unusual items there -- regional brands from unfamiliar grocery chains a thousand miles away, new product lines from major manufacturers that flopped, beers and wines that didn't have production runs large enough to interest the major grocery chains, etc. That's what makes it fun to shop there.

The more stores they have the more they start to look like any other grocery store because they can't source enough unusual stuff and sell it at bargain prices.

Trader Joe's started on a similar premise but ended up contracting out production of it's own "exotic" and "unique" products.

[Jacson6]

10. G.O. is a simple one step up to Dollar Stores.

We have one here in our rural town that sells lots of cookies, candies and potato chips. They also sell clearance items from distributers at a low price. But as far as veggie, fruit and meat it has a very small selection with them being near their ripe date. I rarely shop there.

[Yo_Mama_Been_Loggin]

11. Maybe that's unique to your place

The one I shop at has a decent selection of meat and vegies.