Grocery Outlet has closed eight stores in California as part of a nationwide effort to shut down 36 underperforming locations. These closures are a component of the company's broader "optimization plan," announced in March, which aims to "improve operational execution, strengthen long-term profitability and increase cash flow generation."
The California-based discount retailer has closed a total of 12 stores, with eight of those located in the Golden State, according to the company's August 12 earnings call. In the same quarter, however, Grocery Outlet opened 10 new stores, bringing the total year-to-date openings to 17.
While the company has not provided an exhaustive list of all closures, a restructuring and investment firm, Gordon Brothers, has made public a list of leases for eight California locations that have been shuttered since July 2026. These include stores in Brawley, El Cajon, Kerman, La Habra, Ontario, Patterson, Poway, and Ridgecrest.
In addition to the California closures, Grocery Outlet has also shut down three stores in Idaho, six in Maryland, four in New Jersey, six in Ohio, and three in Pennsylvania. Collectively, these 36 closures represent approximately 6% of the company's total store portfolio.
During a March earnings call, Grocery Outlet President and CEO Jason Potter stated that while the brand made progress on its goals in the previous year, the fourth quarter presented challenges. "Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional in the fourth quarter," Potter said in a press release. "In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience."
Grocery Outlet is known for offering significant discounts on a wide range of products, including private-label items that can be priced 40% to 70% below traditional retail prices. The company has not yet responded to requests for further comment.