Grocery Outlet to close 9 California locations. Here's where.

"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."

"The plan provides for the closure of 36 financially underperforming stores, including the termination or sublease of the applicable store leases, the termination or sublease of a lease for a distribution center facility that we are no longer utilizing, and the termination of operator agreements with independent operators."

Grocery Outlet, the Emeryville-based supermarket chain, is implementing a major retrenchment plan that includes closing 36 financially underperforming stores across the country. In California, nine locations will close in 2026, primarily in Southern and Central regions including Los Angeles, San Diego, Orange, Kern, and Fresno counties. Affected cities are Azusa, Brawley, El Cajon, Kerman, La Habra, Ontario, Patterson, Poway, and Ridgecrest. The closures also impact stores in Idaho, Maryland, New Jersey, Ohio, and Pennsylvania. The company reported an operating loss of $221.7 million for the fiscal year. CEO Jason Potter acknowledged the chain expanded too quickly, stating the closures represent a direct correction after identifying stores without viable paths to sustained profitability.

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