Shoppers looking for grocery bargains have fewer options in several states after Grocery Outlet shuttered dozens of stores this year. The discount supermarket chain has completed a major round of closures as it works to improve profitability and refocus its business.
Which Grocery Outlet stores have closed?
Grocery Outlet closed 40 stores during the first half of fiscal 2026, according to the company’s latest financial report. The total includes 36 underperforming locations targeted in a restructuring plan announced in March and four additional closures.
The affected stores were spread across six states: California, Idaho, Maryland, New Jersey, Ohio, and Pennsylvania. California accounted for nine of the 36 initially identified closures, while several East Coast states also lost multiple locations.
The company did not announce plans to completely exit any of the affected states. It also opened 17 new stores during the first half of the fiscal year, demonstrating that the closures are part of a broader effort to adjust its store network rather than halt expansion.
Why is Grocery Outlet closing stores?
Grocery Outlet said it launched the restructuring plan to strengthen profitability, improve cash flow, and address weaknesses in its existing store portfolio.
Chief Executive Jason Potter previously acknowledged that the company had expanded too quickly. Some locations struggled to perform as expected, prompting the retailer to concentrate on markets where it has stronger store networks.
The closures also follow a difficult financial period. Grocery Outlet reported a net loss of approximately $174.7 million during the first half of fiscal 2026, compared with a net loss of $18.4 million during the same period a year earlier.
Is Grocery Outlet still expanding?
Despite the shutdowns, the chain continues to pursue new store openings. Grocery Outlet reported operating 547 stores across 16 states at the end of its second fiscal quarter.
The company expects its restructuring efforts to help establish a stronger foundation for future growth. For shoppers, however, the closures mean some communities have lost a nearby source of discounted groceries.
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