Discount grocers across the U.S. have been adjusting store fleets as shoppers pull back on discretionary spending and retailers reassess post-expansion performance. Grocery Outlet Bargain Market is now narrowing that trend to its own footprint with plans to close 36 underperforming stores nationwide.
Grocery Outlet confirms 36-store closure plan
Grocery Outlet announced that it will close 36 stores as part of what the company described as a strategic financial review, according to reporting cited by Consumer Affairs and summarized by Grocery Coupon Guide. The closure total amounts to three dozen locations, with the largest share concentrated on the East Coast.
The company said the stores being closed were underperforming, and the move follows a difficult fourth quarter marked by weaker sales and operational losses. Grocery Outlet also acknowledged that it expanded too quickly and is now scaling back to improve overall performance.
Even as it reduces its store count in some markets, the retailer has said it is continuing a disciplined expansion strategy elsewhere. The company also continues to invest in store remodels, signaling that the closures are part of a portfolio reset rather than a companywide retreat from brick-and-mortar grocery operations.
East Coast stores face the biggest impact
The heaviest impact is confirmed in the East Coast region, where 24 of the 36 closures are expected to occur, according to the source material. States specifically mentioned include Maryland and New Jersey, though the company has not released a comprehensive public list of every affected location.
That means shoppers in those states may know the broader scale of the closures without yet knowing whether their nearest store is among them. No full state-by-state breakdown beyond the East Coast concentration was provided in the referenced reporting.
Outside the East Coast, 12 additional locations are also slated to close across other parts of the country. Grocery Outlet has not publicly detailed all timelines, final shutdown dates, or whether any of the affected stores are in markets where the chain plans to re-enter later through new operators or different formats.
Slower sales and fast expansion drove the decision
The reasons behind the closures are tied to falling sales and rising losses, according to the referenced reports. Grocery Outlet’s recent performance was affected by shoppers buying fewer items per trip, a pattern that has also shown up across parts of the grocery sector as household budgets remain strained.
The company’s own assessment, as described in the source material, is that it expanded too fast. That left some locations underperforming and pushed the chain to reevaluate where it can operate profitably while preserving its discount positioning.
Grocery Outlet’s model depends heavily on opportunistic buying, which means purchasing overstock, packaging-change merchandise, and other closeout inventory at low cost. By trimming weaker stores, the company is positioning its remaining fleet to focus more directly on that model, with a stronger emphasis on profitable neighborhood locations and operational discipline.
What shoppers should expect at remaining stores
For customers, the immediate takeaway is that Grocery Outlet is not ending its bargain-focused strategy at the stores that remain open. The company has indicated it will keep investing in profitable locations, continue remodel efforts, and maintain the opportunistic inventory approach that has long defined its business.
That is the silver lining for regular shoppers: the closures are tied to underperforming stores, while the chain says it is concentrating resources on locations that are still working. The result, based on the company’s stated strategy, is continued access to rotating deals on national brands, frozen foods, pantry staples, and other closeout merchandise.
What is not yet known is the complete list of affected stores or whether additional market-specific announcements will follow. What is clear is that Grocery Outlet is shrinking in selected areas while continuing to operate and invest in the stores it sees as financially sustainable.