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Grocery Outlet Moves to Close 36 Stores This Year as Lease Marketing Begins

Management links the move to 2025 losses tied to rapid expansion during SNAP disbursement delays.

Overview

  • The discount grocer will shutter 36 underperforming locations across California, Idaho, Maryland, New Jersey, Ohio and Pennsylvania, representing about 6% of its store base.
  • Gordon Brothers is marketing the affected leaseholds and reports early interest from prospective retailers and some landlords.
  • Local postings identify eight Maryland stores and nine in California slated to close, with the company saying closures are expected this year but without firm dates.
  • The retrenchment follows steep losses, including a $218.2 million fourth‑quarter net loss and a $224.9 million full‑year loss, which leadership tied to rapid expansion, acquisition costs and delayed SNAP disbursements.
  • Despite the closures, guidance calls for 30–33 new openings in fiscal 2026, with the company warning that restructuring charges and inventory markdowns will pressure near‑term results.