Grocery Outlet is opening new locations across California, rebuilding its network in the Golden State after closing stores early this year.<\/p>\n
A new branch in Ontario Ranch is scheduled to open July 23, and more openings are planned for later this summer. <\/p>\n
The location will be operated by independent owners Gloria and Jason Pineda. By the end of August, the discount grocery retailer plans to open stores in Ramona, San Francisco, Clovis and Petaluma as well. <\/p>\n
The Emeryville, Calif.-based chain announced the closure of 36 stores<\/a> in March, including nine California locations. The closures were an attempt to roll back an overexpansion in the wrong markets, resulting in a loss in 2025. Grocery Outlet did not announce which locations would be closed at the time, but they were listed for sublease by advisory firm Gordon Bros. <\/p>\n Among those listed was an Ontario location closer than seven miles from the soon-to-open site. <\/p>\n Five other Southern California locations were marked for closing in Azusa, Brawley, El Cajon, La Habra, Ontario and Poway. In Central California, the Kerman, Patterson and Ridgecrest stores were also listed for sublease. Outside of California, stores in Idaho, New Jersey, Maryland, Ohio and Pennsylvania also were listed. <\/p>\n In an earnings call in May, Grocery Outlet Chief Executive Jason Potter said the restructuring was helping boost the company\u2019s profit. <\/p>\n \u201cThese closures are now complete and have improved fleet quality and will strengthen the earnings profile of the business over time,\u201d he said.<\/p>\n Grocery Outlet was founded in San Francisco in 1946 as a discount grocery store chain selling overstock of limited-time or holiday food items. There are about 280 Grocery Outlet locations in California, accounting for more than half of its total store count. <\/p>\n Though Grocery Outlet has cultivated a dedicated consumer base on TikTok and other social media posts from grocery bargain hunters, it faces fierce competition from other budget grocery chains, including Aldi<\/a>, which is set to open 180 stores in 2026. It also competes with Trader Joe\u2019s, Walmart and Amazon, which have steadily gained customers. <\/p>\n Last year it was also hurt by the lapse in federal food assistance during the 43-day government shutdown. <\/p>\n