Grocery Outlet Closing Stores Updated Info 2026

Customers are paying close attention to cheesecake factory closing locations and other retail changes as major food and restaurant brands adjust their store networks. Grocery Outlet has also made important changes in 2026, but the company is not shutting down its entire business.

The phrase grocery outlet closing stores has become important for shoppers who want to know whether their local store is affected. Grocery Outlet launched an Optimization Plan in 2026 after reviewing its store network and identifying locations that were not performing well enough financially.

The company planned to close 36 financially underperforming stores. By the end of the first half of fiscal 2026, all 36 planned closure stores had closed. At the same time, Grocery Outlet continued opening new stores and maintained a large network across the United States.

Why Is Grocery Outlet Closing Stores?

Grocery Outlet did not announce a company-wide shutdown. Instead, management reviewed its existing locations and decided that some stores did not have a strong path toward long-term profitability.

The company called this effort its Optimization Plan. The plan aims to strengthen profitability, improve cash flow, improve store operations, and create a more efficient store footprint.

Grocery Outlet said the 36 closure stores were financially underperforming locations. The company also worked on lease exits and ended agreements with some independent operators connected with the affected locations.

This means a store closure does not automatically suggest that Grocery Outlet is in financial trouble across its entire business. The company is trying to remove weaker locations while continuing to invest in markets where it sees better opportunities.

How Many Grocery Outlet Stores Closed in 2026?

Grocery Outlet originally identified 36 stores for closure under the Optimization Plan.

During the first quarter of fiscal 2026, the company closed 27 stores and started the closure process for the remaining nine locations. During the second quarter, it completed the closure of those final nine stores. As a result, all 36 stores included in the Optimization Plan had closed during the first half of fiscal 2026.

However, the total number of stores closed during the first half was higher than 36. Grocery Outlet reported that it closed 40 stores in total during the first 26 weeks of fiscal 2026. The other closures were separate from the 36 stores included in the Optimization Plan.

This distinction matters because online reports can make the closure number look confusing. The company specifically identified 36 financially underperforming stores as part of its optimization effort, while the overall number of store closures reached 40 during the first half of the fiscal year.

Is Grocery Outlet Going Out of Business?

No. Grocery Outlet is not going out of business.

The company continues to operate hundreds of stores and is still pursuing new store growth. At the end of the second quarter of fiscal 2026, Grocery Outlet had 547 stores across 16 states. During the same quarter, it opened 10 new stores and closed 12 stores.

For the first half of fiscal 2026, the company opened 17 new stores while closing 40. Grocery Outlet also maintained its expectation of opening 30 to 33 net-new stores during fiscal 2026, excluding the stores involved in the Optimization Plan.

These numbers show that Grocery Outlet is taking a selective approach. It is closing weaker locations while continuing to expand in areas that management believes can support profitable growth.

Which States Have Grocery Outlet Stores?

Grocery Outlet operates across a wide geographic area in the United States. Its store network includes states such as California, Washington, Oregon, Pennsylvania, Tennessee, Nevada, Idaho, Maryland, North Carolina, Ohio, Virginia, Georgia, New Jersey, Alabama, Delaware, and Kentucky.

The company entered Virginia in 2026, showing that its strategy still includes geographic expansion. Grocery Outlet announced its first Virginia store in Falls Church, with the opening planned for February 2026. The company described the move as part of its longer-term growth strategy.

Because Grocery Outlet operates through a mix of company involvement and independently operated stores, individual locations can have different performance levels. A closure in one market does not mean that other nearby stores will necessarily close.

What Caused the Store Closures?

Several business factors can influence whether a grocery store remains profitable. Grocery Outlet specifically linked the 2026 closures to financially underperforming stores identified through its strategic, financial, and operational review.

The company also reported pressure from lower comparable-store sales and changes in customer spending. In the first half of fiscal 2026, comparable-store sales declined 0.6%. The company said a decrease in average transaction size partly offset an increase in the number of transactions.

Grocery retail is highly competitive. Stores must manage rent, wages, inventory, transportation, utilities, promotions, and other operating costs. When a location cannot generate enough sales or profit to justify those costs, closing the store can become part of a broader business strategy.

Grocery Outlet also recorded restructuring costs connected with the Optimization Plan. The company expects these actions to be substantially completed by the first quarter of fiscal 2027.

What Does This Mean for Grocery Outlet Customers?

For shoppers, the most important question is whether their local store remains open.

If your nearest Grocery Outlet is operating normally, the 2026 closure program does not mean you should expect it to close automatically. The company has continued to operate hundreds of locations and has opened new stores during the same period.

Customers should check the status of their specific location before making a long trip. Store hours, inventory, and local operating conditions can also change independently of the company’s broader closure program.

People who shop at Grocery Outlet because of its discounted groceries may also have other locations available within the same region. The company’s continued store openings suggest that it still sees opportunities to serve customers in selected communities.

Shoppers who have questions about purchases, refunds, or their rights can also learn more through the USA.gov consumer protection resources.

Grocery Outlet’s Growth Strategy Is Still Active

It may seem unusual for a retailer to close stores while opening new ones at the same time. However, this strategy is common when a company wants to improve the quality of its store network rather than simply increase the number of locations.

Grocery Outlet has described its approach as more disciplined growth. The company wants to select locations that can support stronger operations and improve supply chain efficiency.

Its 2025 annual report also described plans to develop a more clustered store model in new markets. The company said it was applying stricter standards when evaluating new locations.

This approach can help the retailer focus resources on stores with better long-term potential instead of keeping every location open regardless of performance.

What Shoppers Should Know About Future Closures

The current grocery outlet closing stores situation is mainly connected with the 2026 Optimization Plan. Grocery Outlet completed all 36 planned closure stores during the first half of fiscal 2026.

That does not guarantee that the company will never close another store. Retailers regularly review locations based on sales, costs, leases, market conditions, and future growth opportunities.

However, customers should avoid assuming that every Grocery Outlet location is at risk. The company’s current strategy combines store closures with continued expansion.

Grocery Outlet’s latest results also show that the company continues to generate significant sales. Net sales increased 2.3% to $2.36 billion during the first 26 weeks of fiscal 2026, although comparable-store sales declined 0.6%.

This provides important context when looking at reports about store closures. A retailer can close underperforming locations while still generating sales and investing in new stores.

Are More Grocery Outlet Stores Expected to Close?

At present, customers should separate confirmed closures from speculation.

Grocery Outlet has officially reported the completion of its 36-store Optimization Plan closures. The company has not announced that it plans to close its entire store network or leave the markets where it currently operates.

The company expects to continue its new-store program, with guidance calling for 30 to 33 net-new stores during fiscal 2026.

Future decisions may depend on store performance and local business conditions. Grocery Outlet’s more selective approach to store development means that management is likely to pay close attention to profitability before committing to new locations.

How to Check If Your Local Store Is Affected

If you are concerned about a nearby Grocery Outlet, check the store’s current status before visiting. Customers can also watch for official announcements about individual locations, changes in operating hours, or store-specific closure notices.

It is better to verify a specific store than rely on a general social media post or an outdated closure list. Grocery Outlet operates in many states, and a closure in one city does not necessarily affect another location in the same state.

Local shopping conditions can also change quickly. A store may reduce inventory or begin clearance activity before a final closure, while another location may continue operating normally.

Final Thoughts on Grocery Outlet Store Closures

The 2026 changes show that Grocery Outlet is reshaping its business rather than abandoning its retail model. The company identified 36 financially underperforming stores for closure and completed those closures during the first half of fiscal 2026. It also closed four additional stores during that period, bringing total closures to 40.

The key point is that Grocery Outlet remains an active and expanding grocery retailer. It ended the second quarter with 547 stores across 16 states and continued opening new locations.

For customers searching for grocery outlet closing stores, the best approach is to check the status of the specific location they use. The 2026 Optimization Plan affects selected stores, not the entire Grocery Outlet chain.

Grocery shopping habits continue to change, and retailers must adjust when certain locations no longer meet financial goals. Grocery Outlet’s current strategy shows a clear effort to remove weaker stores while building a stronger network for future growth.