OAKLAND — Grocery Outlet is pushing ahead with plans for two new stores in Oakland, moves that would breathe new life into shuttered retail sites in the city.
The grocery chain plans to open at 5055 Telegraph Ave. in the Temescal district of North Oakland and 301 East 18th St. in the Eastlake district near Lake Merritt, according to documents on file with the city of Oakland and the Alameda County Recorder’s Office.
301 East 18th Street, a retail site in Oakland, seen in 2024. (Google Maps)
The Telegraph Avenue location totals about 14,400 square feet, while the East 18th site is about 5,200 square feet, according to commercial real estate databases.
Grocery Outlet’s Telegraph Avenue store would make it one of the key merchants in a retail hub known as Temescal Plaza.
“Temescal Plaza is a 47,063-square-foot retail center located at 51st Street and Telegraph Avenue, directly off Highway 24 in the heart of the Temescal district of Oakland, a hotbed for innovative retail and restaurant concepts,” stated a brochure circulated by Cumbelich & Associates, a commercial real estate firm that is seeking tenants for the shopping center.
Applications of varying types have been submitted to the Oakland Planning Department that seek to pave the way for the new Grocery Outlet operations. Walgreens had operated stores at both of the now-empty locations.
Grocery Outlet has decided to close 36 stores, primarily on the East Coast, that the supermarket chain deemed to be underperforming, company executives disclosed during a March 4 conference call with Wall Street analysts.
No Grocery Outlet stores in the Bay Area are slated to close.
Chief Executive Officer Jason Potter told analysts that Grocery Outlet has also decided to open 30 to 33 new stores around the country.
“We continue to plan to open another 30 to 33 net new stores in 2026, but they do reflect a more disciplined approach,” Potter said during the call.
Emeryville-based Grocery Outlet’s revamped strategy will be on display as it opens stores in Virginia.
“These locations will start as company-run with the intent of bringing them up to profitability before handing them over to independent operators,” Potter said. “Once proven, we believe this approach could be applied in more markets as we continue to grow this business.”