Discount grocer Grocery Outlet plans to close 36 underperforming stores as it adjusts after a period of rapid growth. Roughly two-thirds of those closures—24 stores—are in the eastern U.S., representing about 30% of its locations in the region. And 10 of the stores are in Pennsylvania and New Jersey.
CEO Jason Potter said the closures are a direct correction after the company expanded too quickly. Despite the pullback, Grocery Outlet does not plan to exit any states and still intends to open 30 to 33 new stores in 2026.
The company is also reviewing the future of United Grocery Outlet (UGO), the 40-store extreme-value chain it acquired in 2024, with options ranging from integration into the core brand to a potential sale.
Going forward, Grocery Outlet says it will refocus on value messaging, store remodels, and strengthening the “treasure hunt” shopping experienc
