Grocery Outlets to Close Stores in Idaho Falls, Pocatello

Company CEO cites 'unacceptable' sales and plans to shutter 36 underperforming locations nationwide.

Published on Mar. 10, 2026

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Grocery Outlet, a discount grocery chain, has announced the closure of two of its stores in Idaho Falls and Pocatello, along with 34 other locations across the country. The decision comes after the company's CEO, James Potter, reported 'unacceptable' fourth-quarter results and acknowledged that the company had expanded too quickly. The closures are expected to free up resources to assist other stores in different markets.

Why it matters

The closure of these Grocery Outlet stores in Idaho Falls and Pocatello is a significant blow to the local communities, as the discount grocery chain had been seen as a valuable addition to the retail landscape. The shutdowns also highlight the challenges facing the broader grocery industry, with companies needing to carefully manage expansion and maintain profitability in a competitive market.

The details

Grocery Outlet first opened its Idaho Falls store in July 2022 and the Pocatello location in April 2026. However, during an earnings call on March 4, CEO James Potter told investors that the company's fourth-quarter results were 'unacceptable' and that 36 stores, including the two in Idaho, were identified as lacking a viable path to sustained profitability. Potter said the majority of the identified stores were located on the East Coast, but a third Idaho store in Smelterville will also be closing.

  • Grocery Outlet first opened its Idaho Falls store in July 2022.
  • Grocery Outlet opened its Pocatello location in April 2026.
  • On March 4, 2026, Grocery Outlet CEO James Potter announced the closure of 36 stores, including the locations in Idaho Falls and Pocatello.
  • The Idaho Falls and Pocatello Grocery Outlet stores will be closing by March 21, 2026.

The players

Grocery Outlet

A discount grocery chain that operates stores across the United States.

James Potter

The CEO of Grocery Outlet, who announced the store closures during an earnings call.

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What they’re saying

“Our outlook for 2026 reflects a business with more work to do than we expected. I own this, and I own fixing these issues.”

— James Potter, CEO, Grocery Outlet (EastIdahoNews.com)

“However, it's clear that we expanded too quickly and that these closures are a direct correction.”

— James Potter, CEO, Grocery Outlet (EastIdahoNews.com)

What’s next

The closure of the Grocery Outlet stores in Idaho Falls and Pocatello is expected to be completed by March 21, 2026.

The takeaway

The Grocery Outlet closures in Idaho highlight the challenges facing the broader grocery industry, as companies must carefully manage expansion and maintain profitability in a competitive market. The loss of these discount grocery options will be felt by the local communities, underscoring the importance of a diverse and thriving retail landscape.