Grocery Outlet is closing two stores in San Diego County as part of its restructuring plan that calls for shutting 36 stores nationwide to boost profit.
In a news release last week to investors, the Emeryville-based company announced a “business optimization plan … to improve operational execution, strengthen long-term profitability and increase cash flow generation.”
All 36 stores, including nine in California, marked to close were designated as “financially underperforming.”
The San Diego-area stores marked for closure are in El Cajon at 350 N. 2nd Street and Poway at 13345 Poway Road. The company operates 20 stores in the county.
Outside California, the company will shut down stores in Idaho, Maryland, New Jersey, Ohio and Pennsylvania.
This Vons store in San Diego County is closing and laying off 65
The Grocery Outlets that will close are all small to midsized grocery stores. The locations for lease 14,000 to 30,000 square feet, according to a leasing brochure. The San Diego County stores that will close are at the smaller end of the spectrum, around 15,000 to 16,000 square feet.
Jason Potter, the president and CEO of Grocery Outlet, said in the release that the company made progress toward its goals in 2025 but fell short in the last quarter. He pointed to competition and consumer pressure, and said the company must keep working to refresh stores, improve the customer experience and “delivering clearer value.”
The company also noted the halt of federal government food benefits, which put a damper on consumer spending at the chain, which had 570 stores in 16 states at the end of 2025.
“Comparable store sales for the quarter were adversely impacted by the delayed disbursement of benefits from federally-funded assistance programs that many of our customers depend on, including the Supplemental Nutrition Assistance Program,” it said.
No last day of business has been announced.