Overview
- Grocery Outlet will close 36 locations nationwide after concluding it expanded too quickly, including 24 in the eastern U.S., and says it is not exiting any state.
- The retailer expects about $12 million in annualized adjusted EBITDA improvement from the closures, which affect roughly 6% of its stores, and reports its 51 remaining Eastern stores were profitable with 3.3% Q4 comps.
- Management linked late‑2025 sales softness to marketing missteps, SNAP/EBT distribution timing that hurt affordability, and intensifying basket pressure on core customers.
- Despite the cuts, Grocery Outlet plans 30–33 openings in 2026 under a tighter clustered model, plus 150 store refreshes and about $20 million in promotions focused on fresh products.
- Kroger filed California WARN notices to close three stores in March—Fresno, Sacramento and Inglewood—resulting in 171 layoffs as part of a broader 18‑month contraction plan announced in 2025.