Overview
- The company said the closures represent roughly 6% of its stores, with 24 in the East accounting for about 30% of that region, and it is not exiting any state.
- Directors adopted an Optimization Plan expected to be substantially completed in fiscal 2026, with estimated restructuring charges of $14 million to $25 million.
- Grocery Outlet reported a fourth-quarter operating loss of $234.8 million and a net loss of $218.2 million, citing weaker comps tied to delayed SNAP/EBT disbursements, mounting consumer pressure and execution issues.
- Management projects about $12 million in annualized adjusted EBITDA improvement from the closures and plans 30–33 more tightly clustered openings in 2026 alongside 150 remodels and roughly $20 million in promotional spending.
- Shares fell more than 27% after the announcement, the company has not released a full closure list or timing, and local reporting identified planned shutdowns in Philadelphia and parts of South Jersey.