A California supermarket chain known for its bargain prices has announced theclosure of dozens of its storesacross the country.
The California-based Grocery Outlet said it plans to shutter 36 “financially underperforming stores” across the country as part of the company’s optimization plan “to improve operational execution, strengthen long-term profitability and increase cash flow generation.”
Jason Potter, President and CEO of Grocery Outlet, said the company made progress on its goals in 2025, but fourth-quarter results made clear they had more work to do.
“Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional in the fourth quarter,” Potter said in apress release.
“In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience.”
Potter’s said part of the restructuring plan would include the closure of dozens of stores that were “financially underperforming.”
“At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital,” the CEO said.
It is unclear at this time how many workers will be affected by the closures.
The store said net sales increased by 7.3% to $4.69 billion during fiscal 2025, according to a Fiscal 2025 Financial Summary.
However, it recorded an operating loss of $234.8 million and a net loss of $218.2 million in the fourth quarter of fiscal year 2025, per the press release.
Source: California Post – Breaking California News, Photos & Videos
