Grocery chain to close more than 30 stores as CEO…

Grocery chain to close more than 30 stores as CEO blames rapid expansion and food stamps cuts

Grocery Outlet Bargain Market, the California-based discount grocer known for its closeout deals, plans to close 36 underperforming stores across the U.S.

Jason Potter, president and CEO of the company, said the closures are a cost-cutting move to correct the chain’s rapid expansion and address changes in SNAP benefits that have affected many of its core customers.

The plan was revealed during last week’s earnings announcement as Grocery Outlet works to improve profitability following disappointing fourth-quarter results that included a significant net loss.

The closures, expected by the end of the current fiscal year, account for about 6 percent of Grocery Outlet’s roughly 570 stores, including about 24 on the East Coast, where the company acknowledged it expanded too quickly, according to Grocery Drive. Grocery Outlet’s fiscal year ends on the Saturday closest to December 31, meaning most years have 52 weeks, though 2025 was a 53-week year that ended January 3, 2026.

While the company did not release a full list of affected stores publicly, reporting from multiple local news channels indicates closures will span multiple states, including locations in Pennsylvania, Maryland, California, Idaho, New Jersey and Ohio, ABC7 reports.

The closures are part of an optimization plan approved by Grocery Outlet’s board to shift resources and streamline operations. The move follows a tough financial quarter for the company, which reported a net loss of more than $218 million despite overall sales continuing to rise.

“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,” Potter said.

He continued that shoppers faced increased financial pressure in the fourth quarter as federally funded benefits were delayed and grocery competition intensified with more promotions. In response, the company is focusing on improving value for customers and enhancing the in-store experience, including restoring more opportunistic discount deals and continuing its store refresh program, which it says is already showing early improvements.

“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,” Potter said. “We are confident that we have identified the core challenges, and now have the right plans in place and the right team to execute them.”

Despite shuttering dozens of locations, Grocery Outlet is not abandoning expansion entirely. Company guidance suggests it still plans to open 30 to 33 new stores in fiscal 2026.