Grocery Outlet to close dozens of ‘underperforming’ stores

Grocery Outlet, the Emeryville-based discount grocer with a large Northern California footprint, said it plans to close 36 financially underperforming stores as it tries to improve profitability after reporting a steep quarterly loss.

The closures are part of a business “Optimization Plan” adopted by the company’s board Monday and expected to be “substantially completed during fiscal 2026,” Grocery Outlet said in a news release Wednesday announcing fourth-quarter and full-year financial results.

“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we’re moving quickly,” Jason Potter, the company’s president and chief executive, said in a statement. “At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital. ”…

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