Grocery Outlet Closes 40 Stores in Restructuring Effort

Discount grocery chain Grocery Outlet Bargain Market has closed 40 underperforming locations across six states as part of a strategic restructuring announced in March 2026. This initiative aims to enhance long-term profitability and optimize the company's existing store footprint. The closures encompass 36 locations initially identified as underperforming, with an additional four stores also ceasing operations in the first half of fiscal year 2026. Concurrently, Grocery Outlet has expanded its reach by opening 17 new stores during the same period. The company's stock, traded on Nasdaq under the ticker GO, has shown positive performance, rising 11% over the past six months and approximately 10% year-to-date, following the announcement of the closures.

Global asset advisory firm Gordon Brothers is managing the marketing and subleasing of the shuttered Grocery Outlet retail spaces. A July 2026 flyer from Gordon Brothers lists 30 former Grocery Outlet locations that remain available for sublease. These available sites are distributed across California, Idaho, Maryland, New Jersey, Ohio, and Pennsylvania, reflecting the broad geographical impact of the closures. The former retail spaces vary in size, ranging from 14,000 to 30,000 square feet, and in most instances, the furniture, fixtures, and equipment are also available for purchase.

The specific locations that have closed include multiple sites in California: 315 Panno Drive in Brawley, 350 N. 2nd Street in El Cajon, 14868 West Whitesbridge Avenue in Kerman, 2001 West Whittier Blvd in La Habra, 4420 Ontario Mills Parkway in Ontario, 2900 Sperry Ave in Patterson, 13345 Poway Rd in Poway, and 120 N. China Lake Blvd in Ridgecrest. In Idaho, closures occurred at 2455 East 25th Street in Idaho Falls, 1732 Hurley Drive in Pocatello, and 20 Nearing Way in Smelterville. Maryland saw closures at 1753 Chesaco Ave in Baltimore, 598 Cranbrook Road in Cockeysville, 5410 Lynx Lane in Columbia, 1713 Massey Blvd in Hagerstown, 7660 Belair Road in Nottingham, and 11120 Reisterstown Road in Owings Mills. New Jersey locations affected include 4004 Route 130 in Delran and 3057 NJ-35 in Hazlet. The flyer also lists 190 Hamilton Comm in New Jersey as available. The full list of 30 available sublease locations indicates a significant footprint adjustment for the discount grocer. The strategic decision to close these stores is a critical step in Grocery Outlet's ongoing efforts to streamline operations and bolster financial health, as detailed in Grocery Outlet Holding Corp.'s recent earnings report.