Last Updated on March 6, 2026 by The HD Post Staff
CALIFORNIA – Grocery Outlet plans to close 36 underperforming stores nationwide as the discount chain restructures operations after expanding too quickly in recent years.
Grocery Outlet operates about 285 stores in California, more than any other state. The company has not said whether any California locations will be among the stores slated to close.
The closures represent about 6% of the company’s store network and are expected to be completed mostly during fiscal year 2026.
The decision follows a difficult fourth quarter in which the company reported a net loss of about $218 million.
Grocery Outlet President and CEO Jason Potter told investors the company is now adjusting its store network by closing weaker locations.
About 24 of the stores slated to close are on the East Coast, though the company has not released the full list of locations.
“We are not fully exiting any state, and we believe we have a meaningful opportunity to grow in the East over the long term, however, it’s clear now that we expanded too quickly,” Potter said.
Despite the closures, Grocery Outlet said it plans to continue expanding and expects to open 30 to 33 new stores in 2026.
The Emeryville-based chain operates more than 570 stores in 16 states and is known for its discount model that sells surplus and closeout groceries at reduced prices.
Other recent grocery store closures
Grocery Outlet is not the only grocer adjusting its footprint.
Safeway recently closed 12 grocery stores across three states, with an additional four store closures in the Bay Area linked to underperformance, financial struggles and safety concerns.
As of early 2026, Amazon is closing all 58 Amazon Fresh grocery stores and 14 to 16 Amazon Go convenience stores nationwide—more than 70 locations in total, including 23 in California, citing high operating costs and lower-than-expected customer traffic.
Grocery Outlet officials said the closures are intended to strengthen operations and shift resources toward more profitable stores.
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