Grocery Outlet plans store closures as part of 'optimization' plan

A major discount grocer is reorganizing its footprint as part of a store optimization plan.

California-based Grocery Outlet will close 36 underperforming stores across California, Idaho, Pennsylvania, New Jersey, Maryland and Ohio (full list found later in article) as part of a plan to refine its store base to “align capital and resources with long-term market opportunities.” The grocer said it is also targeting 30 to 33 net new store openings in fiscal 2026. 

“We’re intensely focused on restoring the opportunistic mix to rebuild value perception with the customer and advancing our store refresh program, and we’re already seeing early, measurable improvements,” said Grocery Outlet CEO Jason Potter. “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. 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.”

Real estate services firm Gordon Brothers has been retained by Grocery Outlet to market the portfolio of leases and related furniture, fixtures and equipment (FF&E) at the three dozen stores across six states. Gordon Brothers says the available locations are positioned in established neighborhood centers and dominant regional corridors. The stores range from 14,000 to 30,000 square feet.