Grocery Outlet to Close Two Idaho Stores by March 2026

The bargain grocery chain will shutter locations in Pocatello and Idaho Falls as part of 36 nationwide closures.

Published on Mar. 12, 2026

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Grocery Outlet, a California-based discount grocery chain with 16 locations in Idaho, has announced it will be closing two stores in the state by March 21, 2026. The closures in Pocatello and Idaho Falls are part of a broader plan to shut down 36 stores across the U.S. after the company expanded too quickly in recent years.

Why it matters

The Grocery Outlet closures highlight the challenges facing brick-and-mortar retailers as they navigate shifting consumer preferences and economic pressures. The decision to shutter the Idaho locations reflects the company's broader strategy to optimize its portfolio and focus on more profitable markets.

The details

Grocery Outlet, which operates over 500 stores across 16 states, primarily on the West Coast, said the 36 store closures will be spread across six states: California, Idaho, Maryland, New Jersey, Ohio, and Pennsylvania. The company's new CEO, Jason Potter, who joined just over a year ago, cited 'unacceptable' fourth-quarter results and a need to do 'more work than we expected' as reasons for the closures.

  • Grocery Outlet will close the two Idaho stores by March 21, 2026.
  • The company announced the 36 store closures nationwide during a March 4, 2026 earnings call.

The players

Grocery Outlet

A California-based discount grocery chain with over 500 stores across 16 states, primarily on the West Coast.

Jason Potter

The new President and CEO of Grocery Outlet, who joined the company just over a year ago.

Christopher Miller

The Chief Financial Officer of Grocery Outlet.

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What they’re saying

“We are not fully exiting any state, and we believe we have a meaningful opportunity to grow in the east over the long term. However, it's clear now that we expanded too quickly, and these closures are a direct correction.”

— Jason Potter, President and CEO, Grocery Outlet (idahobusinessreview.com)

“Pressure on our core customer increased more than we'd expected. Basket pressure intensified for our core customers, leading to a dip in sales that continued into January 2026.”

— Jason Potter, President and CEO, Grocery Outlet (idahobusinessreview.com)

What’s next

Grocery Outlet plans to open 30 to 33 new stores in 2026 under a more 'disciplined approach' or 'clustered model' to improve supply chain efficiency. The company will also invest $20 million into promotions for fresh products to drive customer excitement.

The takeaway

The Grocery Outlet closures in Idaho are part of a broader strategy to optimize the company's portfolio and focus on more profitable markets. While the bargain grocery chain is still expanding in some areas, the decision to shutter stores highlights the ongoing challenges facing brick-and-mortar retailers in an evolving retail landscape.