Published on March 23, 2026
Grocery Outlet, the Emeryville-based supermarket chain known for its discounted groceries, is set to close 36 stores across the United States as part of an optimization plan aimed at recalibrating its operations following a period of rapid expansion.
The decision to shutter nearly 10% of its store locations comes after a strategic review revealed that the company had outgrown its infrastructure and needed to focus on improving efficiency and profitability. The closures will primarily affect underperforming locations, enabling the grocery chain to consolidate its resources and enhance the shopping experience in its remaining stores.
In a statement released , Grocery Outlet emphasized its commitment to its core markets and acknowledged the difficulties that these closures would bring to affected employees and communities. “We understand that this decision impacts our loyal customers and dedicated staff, and it was not made lightly,” the statement read. “Our priority is to ensure that our stores continue to meet the evolving needs of our shoppers while maintaining a sustainable business model.”
The supermarket chain has seen significant growth over the past few years, fueled demand for budget-friendly shopping options, particularly during the economic uncertainties brought on . However, this rapid expansion led to some locations floundering in competitive markets, and the company is now focusing on strengthening its footprint in more profitable areas.
Grocery Outlet plans to redirect its resources and efforts into bolstering its remaining stores through improved inventory management, enhanced customer service, and targeted marketing strategies. This approach is expected to position the company for a more stable and focused growth trajectory in the coming years.
As the closures roll out, the company is working with local management teams to assist affected employees in finding new job opportunities, either within the organization or through partnerships with other local businesses. Grocery Outlet aims to transition as smoothly as possible, demonstrating its dedication to its workforce during this challenging period.
Customers who frequent the closing locations have expressed disappointment but remain hopeful that the consolidation will lead to a stronger and more efficient grocery experience in the stores that will remain open. As the chain embarks on this new phase, its leadership is optimistic about the steps being taken to align its operations with customer expectations and market demands.