California budget chain Grocery Outlet closing multiple stores

A slew of closures have left grocery shoppers in California with fewer affordable options.

Grocery Outlet — a major discount retailer — first announced plans to shut down 36 “financially underperforming stores” locations back in March. The shutters would take place all across the country as part of the company’s “optimization plan.”

The scheme would “improve operational execution, strengthen long-term profitability and increase cash flow generation,” according to a company earnings call.

The California-based chain has since closed down 12 stores with eight of them in The Golden State, the grocery behemoth said on its latest August 12 earnings call. Ian Ferry, CFO, added that 10 new stores have been opened during the quarter, and 17 this year to date.

While the company has not revealed a full list of stores that have closed, locations were made available by restructuring and investment firm Gordon Brothers.

Shortly after the closure announcement, Gordon Brothers put together a list of leases that were made public via a flyer.

The leases show eight California locations are up for grabs as they have closed down since July 2026.

The following address are the eight stores which have shut down:

• 315 Panno Drive, Brawley
• 350 N. 2nd Street, El Cajon
• 14868 West Whitesbridge Avenue, Kerman
• 2001 West Whittier Blvd, La Habra
• 4420 Ontario Mills Parkway, Ontario
• 2900 Sperry Ave, Patterson
• 13345 Poway Rd, Poway
• 120 N. China Lake Blvd, Ridgecrest

Jason Potter, the President and CEO of Grocery Outlet, said in the March earnings call that while the brand made progress on its goals last year, fourth-quarter proved it 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 a press release.

“In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience.”

In addition to the closed Golden State stores, it has also shut down three locations in Idaho, six in Maryland, four in New Jersey, six in Ohio and three in Pennsylvania.

Despite the 36 closures, it only accounts for roughly 6% of Grocery Outlet’s lineup, according to Grocery Dive.

The retail giant has been a reliable spot for shoppers as folks can depend on it for massive discounts, including private-label products that have discounts ranging anywhere from 40% off up to 70% off.

The Post has reached out to Grocery Outlet for more information but has not heard back.

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