California-based discount retailer Grocery Outlet plans to close 36 stores across the United States as part of a companywide restructuring plan.
The announcement came Wednesday, March 4, when the company said it would shut down locations that are “financially underperforming.”
“To strengthen long-term profitability and cash flow generation, improve operational execution, optimize our existing store footprint and align with our disciplined new store growth strategy, in the first quarter of fiscal 2026 we conducted a strategic, financial and operational analysis of our store fleet,” Grocery Outlet said in a news release.
As a result, the grocery store chain plans to close 36 stores; end agreements with some independent store operators; and terminate or sublease certain leases, including one distribution center facility that is no longer being used.
Here’s what to know:
The Grocery Outlet located at Nees and Willow avenues, shown Tuesday, July 15, 2025 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com What is Grocery Outlet?
Grocery Outlet — officially known as Grocery Outlet Bargain Market — is a discount retailer that sells name-brand products up to 60% below typical grocery store prices, according to the company website.
The Emeryville-based company is known for its “treasure hunt” shopping experience, where inventory frequently changes based on available deals.
Grocery Outlet was founded in 1946 and now operates more than 560 stores across several states, including California.
Why is Grocery Outlet closing stores? When will stores close?
Grocery Outlet said the closures are part of a strategy to “improve long-term profitability” after expanding its store network too quickly in recent years.
Grocery Outlet said the closures will happen gradually and are expected to be completed by the end of 2026, according to the release.
During the company’s latest earnings call, Grocery Outlet CEO Jason Potter said the decision came after a detailed review of store performance.
Potter did not say whether the closures would lead to layoffs, according to the Los Angeles Times.
“Following a rigorous analysis of the fleet, we identified 36 stores in the network that we concluded did not have a viable path to sustained profitability,” Potter said during the earnings call. “It’s clear now that we expanded too quickly, and these closures are a direct correction.”
Despite the closures, the company still plans to expand.
Grocery Outlet expects to open 30 to 33 new stores in 2026, the Los Angeles Times reported.
Staff stock items at the new Grocery Outlet located at Nees and Willow avenues Tuesday, July 15, 2025 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com Which Grocery Outlet locations will close in California?
According to Gordon Brothers, which assisted with Big Lots’ bankruptcy, Grocery Outlet plans to close stores in California, Idaho, Maryland, New Jersey, Ohio and Pennsylvania.
In California, locations in Fresno, Stanislaus, Kern, Los Angeles and San Diego counties are among those shutting their doors.
These Grocery Outlet locations are closing in California:
355 North Citrus Ave., Azusa315 Panno Drive, Brawley350 North Second St., El Cajon14868 West Whitesbridge Ave. Kerman2001 West Whittier Blvd., La Habra4420 Ontario Mills Parkway, Ontario2900 Sperry Ave., Patterson13345 Poway Road, Poway120 North China Lake Blvd., Ridgecrest Have a question about life in California?
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Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.