Grocery Outlet to Close 36 Underperforming Stores Across 6 States

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Grocery Outlet Bargain Market, a California-based discount grocery chain, has announced plans to close 36 'financially underperforming' stores across six states, including four locations in Pennsylvania. The company cited increased consumer pressure and competition as well as disruptions to federal benefits programs as factors behind the optimization and restructuring plan.

Why it matters

The Grocery Outlet closures reflect broader challenges facing the retail grocery industry, including heightened competition from larger chains, shifts in consumer spending, and the ongoing impacts of economic disruptions. The closures will impact communities that rely on Grocery Outlet as an affordable grocery option, raising questions about access to nutritious and affordable food in those areas.

The details

Grocery Outlet operates 12 stores across several counties in Pennsylvania, but none of the 36 locations slated for closure are in the Midstate region. The four Pennsylvania stores set to close are located in Philadelphia, Chester, and Crawford counties. The company reported a $234.8 million operating loss in the last quarter despite a nearly 11% increase in net sales compared to the same period in fiscal year 2024.

• Grocery Outlet announced the optimization and restructuring plan on Thursday, March 7, 2026.
• The 36 store closures are slated to take place by the end of the current fiscal year.

What’s next

The company has not provided details on whether any of the affected employees will be offered positions at other Grocery Outlet locations or if severance packages will be provided.