Grocery Outlet Holding Corp. is closing nine supermarkets in California as part of a nationwide restructuring plan to boost profit for the Emeryville-based chain.
Jason Potter, president and chief executive officer of Grocery Outlet, described the closings as part of a “optimization and restructuring plan” involving 36 underperforming supermarkets in California, Idaho, Maryland, New Jersey, Ohio and Pennsylvania.
Stores in Azusa, La Habra and Ontario are expected to close by the end of 2026, according to the March 4 announcement made by Potter.
Other stores in Poway, Brawley, El Cajon, Kerman, Patterson and Ridgecrest also are closing, according to a list of the targeted stores posted by Gordon Brothers, a Boston-based restructuring and investment firm retained by Grocery Outlet on Thursday, March 5.
Gordon Brothers said it has been retained by Grocery Outlet to market the portfolio of “retail leaseholds,” described as property arrangements where the tenant owns the building but not the land on which it sits.
“We are seeing early interest across a number of the locations from retailers evaluating the sites, as well as some landlords who may look at taking space back as part of lease discussions,” wrote Al Williams, co-president of North America real estate services for Gordon Brothers, in response to questions submitted by the Southern California News Group. “It is still early in the process and we are not identifying specific parties. Many of the stores are in well established retail corridors, and we expect a number of the locations to draw attention as the process moves forward.”
Though closing underperforming stores, Grocery Outlet said it continues to open stores as part of a “new growth strategy” — though it did not elaborate on that strategy. The company has plans to open a store in Yucaipa on March 26, and recently opened another on Feb. 12 in Virginia.
Grocery Outlet currently has more than 560 stores in California and 15 other states.
The announced closings follow Grocery Outlet’s 2025 financial report last week showing substantial losses despite an uptick in sales.
In its fourth quarter, Grocery Outlet said it had a loss of $218.2 million on sales of $1.22 billion, versus a profit of $2.3 million on sales of $1.1 billion.
For all of 2025, the company reported losses of $224.9 million on sales of $4.69 billion versus a prior year profit of $39.5 million sales of $4.4 billion.
“We made progress on our strategic priorities in 2025,” said Potter, adding that the company’s fourth-quarter results “made clear that we have more work to do, and we’re moving quickly.”
Potter also said that Grocery Outlet’s results were negatively affected by delays in the disbursement of federally funded benefits, such as the Supplemental Nutrition Assistance Program, which many of their customers rely on. The lapse in funding for SNAP benefits were due to the 43-day federal government shutdown last fall that ended Nov. 12.
The company also cited higher expenses attributed to new store growth, bad debt reserves and personnel costs associated with 40 stores added to its portfolio from last April’s United Grocery Outlet acquisition in the Southeastern U.S.
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