"Following a rigorous analysis of the fleet, we identified 36 stores in the network that we concluded did not have a viable path to sustained profitability. It's clear now that we expanded too quickly, and these closures are a direct correction."
"Grocery giants Kroger and Albertsons also closed several locations last year and laid off hundreds of employees as inflationary pressures hit consumers and rising labor costs tightened margins."
"We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do."
Grocery Outlet, a Bay Area-based discount grocer, is closing 36 stores as part of an optimization strategy targeting financially underperforming locations and an unused distribution center. CEO Jason Potter acknowledged the company expanded too quickly, with closures taking effect by year-end. The company reported a net loss of $225 million for fiscal 2025 compared to $39 million in net income for 2024, despite a 7.3% increase in net sales. Despite these closures, Grocery Outlet plans to open 30-33 new stores this year. The company operates over 560 independently-operated stores across 16 states, with 24 of the 36 closures occurring in the eastern U.S. region. Stock prices have declined over 43% in the past year.
Read at Los Angeles Times
Unable to calculate read time
Collection
[
|
...
]