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The grocery chain that operates in 16 states said it will close dozens of underperforming stores.

WASHINGTON — Grocery Outlet, a grocery chain with locations in 16 states, said this week that it will close 36 underperforming locations.

The California-based bargain retailer made the announcement during an earnings call on Thursday. In a news release, Grocery Outlet said the closures will happen in fiscal 2026.

During the call, Grocery Outlet President and CEO Jason Potter, who joined the company about a year ago, said fourth-quarter results were “unacceptable,” and there is “more work to do than we expected,” USA Today reported.

Grocery Outlet did not release a list of the stores that will close.

Potter said of the 36 locations slated for closure, 24 are in the eastern United States and represent about 30% of the region’s stores, according to USA Today.

In 2025, the retailer opened 42 stores and closed five stores. The company ended the year with 570 stores in 16 states, according to the news release. Grocery Outlet operates on the West Coast and in New England.



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