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Overexpansion

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Grocery Outlet trims footprint after rapid expansion
business1 month ago

Grocery Outlet trims footprint after rapid expansion

Grocery Outlet says it will close 36 stores by year-end as part of an optimization plan after acknowledging it expanded too quickly; 24 of the closures are in the eastern U.S., while the company plans to open 30–33 new stores in 2026. The retailer posted a $225 million net loss for 2025 despite a 7.3% rise in net sales and operates 560+ stores across 16 states; no layoffs were announced and the plan aims to strengthen long‑term profitability.