Emeryville, California — Discount grocery chain Grocery Outlet Bargain Market announced plans to close 36 underperforming stores across the United States, including several locations in Southern California.
Company officials say the closures are part of an effort to correct rapid expansion and improve overall business performance.
The California-based retailer confirmed that stores in California, Idaho, Maryland, New Jersey, Ohio, and Pennsylvania will be impacted as the company works to streamline operations.
Company says closures tied to rapid expansion
Grocery Outlet President and CEO Jason Potter said the decision to close the locations is primarily tied to overexpansion in recent years.
According to company leadership, the retailer opened new locations quickly but found that some stores did not meet financial expectations.
The company described the closures as a cost-cutting correction after expanding too quickly.
Officials say the goal is to focus resources on stronger-performing stores and stabilize the company’s operations moving forward.
Changes to SNAP benefits also cited
Company leadership also pointed to changes affecting Supplemental Nutrition Assistance Program (SNAP) benefits as another factor impacting store performance.
Many Grocery Outlet locations serve communities where a significant portion of customers rely on food assistance programs.
Executives said reductions and changes to SNAP benefits have affected spending among the company’s core customer base.
These shifts in consumer purchasing patterns have contributed to lower performance at certain stores.
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Closures expected by end of fiscal year
The company said it plans to close the identified underperforming stores and terminate most agreements tied to those locations by the end of the current fiscal year.
Officials have not yet announced the exact closing dates for each location, but the process is expected to unfold over the coming months.
Grocery Outlet operates hundreds of independently run stores across the United States.
Nine California stores scheduled to close
Among the stores slated for closure are nine locations in California, including several in Southern California.
The affected locations include:
- Azusa – Southwest corner of Citrus Avenue and East Alosta Avenue
- Brawley – 315 Panno Drive
- El Cajon – 350 N. 2nd Street
- Kerman – 14868 West Whitesbridge Avenue
- La Habra – 2001 West Whittier Boulevard
- Ontario – 4420 Ontario Mills Parkway
- Patterson – 2900 Sperry Avenue
- Poway – 13345 Poway Road
- Ridgecrest – 120 North China Lake Boulevard
Several of these closures will affect communities across Southern California, where the discount grocery chain has operated for years.
Impact on shoppers and employees
The company has not yet released detailed information about how many employees will be affected by the closures.
Some Grocery Outlet stores are operated by independent owner-operators, which may influence how staffing transitions are handled as locations shut down.
Shoppers in the affected areas may also need to seek alternative grocery stores once closures take effect.
Retail sector continues to adjust to economic pressures
The closures come at a time when many retailers are adjusting their strategies amid changing consumer spending patterns, inflation pressures, and shifting economic conditions.
Discount retailers like Grocery Outlet often see increased demand during economic uncertainty, but operational challenges and rapid expansion can still affect individual store performance.
Company leaders say the closures are intended to strengthen the overall business by focusing on stores that remain profitable.
Officials have not announced whether additional store closures could occur in the future.
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