A popular discount grocery chain is closing more stores across the country after a period of rapid expansion. The latest shutdowns bring the retailer’s total number of store closures this year to 40, marking a significant shift for a company that had been aggressively growing its footprint.
12 more stores shut down
Grocery Outlet closed 12 stores during the 13 weeks ended July 4, 2026, according to recent reporting on the company’s second-quarter results. Nine of those locations were part of a previously announced plan targeting underperforming stores.
The latest closures bring the company’s total 2026 closures to 40 stores. That includes all 36 locations identified under its optimization plan, as well as four additional stores. Grocery Outlet ended the quarter with 547 stores across 16 states.
The closures represent a reversal after years of aggressive expansion. Grocery Outlet opened 136 stores during the past three years, according to recent reporting.
Company acknowledges rapid expansion
Grocery Outlet’s store closures come after the retailer determined that some locations were not performing well enough to justify remaining open.
CEO Jason Potter previously acknowledged that the company had expanded too quickly. The current strategy focuses on improving the productivity of its existing stores while taking a more selective approach to future growth.
The retailer isn’t abandoning expansion altogether. Grocery Outlet still expects to open additional stores during 2026, while investing in its remaining locations.
Sales remain under pressure
The closures come as Grocery Outlet works to improve its financial performance. During the second quarter, comparable-store sales declined 0.3% year over year, while the average transaction size fell 2.1%. Transactions, however, increased 1.8%.
The company continues to operate hundreds of stores nationwide, but the latest closures demonstrate how quickly its strategy has changed from aggressive expansion to focusing on locations with stronger long-term potential.
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