Grocery Outlet is closing stores, joins growing list of retail chains shuttering locations in 2026

The California-based value chain said it expects to close 36 stores. The news comes amid growing concerns around food access.

[Photo: Edward Chaidez/Getty Images]

Grocery Outlet is joining the ranks of retailers planning to shutter storefronts this year.

The discount grocery store chain announced its fourth-quarter and full 2025 fiscal year results on Wednesday, along with a plan to close 36 stores.

This move to close stores follows a previous restructuring plan concluded in the second quarter of fiscal 2025, another attempt to “improve long-term profitability” and optimize growth.

The company reported an increase in net sales, but an operating loss of $234.8 million and a net loss of $218.2 million in the fourth quarter of 2025. 

The optimization plan, which is expected to be largely completed during fiscal year 2026, is estimated to result in $14 million to $25 million in net total restructuring charges.

This doesn’t include the company’s estimated gross profit loss due to sales discounts or product markdowns as the impacted locations close.

At the same time, the fourth-quarter fiscal report noted seven store openings. Trade publication Grocery Drive reported that 24 of the closing stores are on the East Coast, and the company does not intend to slow its expansion, even as it experiences closures.

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