The Grocery Outlet store on Buchanan Road in Antioch and the stores in Oakley and Brentwood will remain open. Photo by Allen D. Payton
Company announced this week underperforming stores will close this year
By Allen D. Payton
Emeryville-based Grocery Outlet announced this week that they plan to close 36 of their 536 stores across the United States this year, including nine in California. However, it was learned Friday, that the Antioch store is not on the list. In addition, according to a news report about a list from a commercial real estate company that has locations for lease, so far, the other five stores in Contra Costa County are also not on the list of closures. Those include stores in Brentwood, Oakley, Pinole, Richmond and San Pablo.
Included in the Grocery Outlet Holding Corp.’s Fourth Quarter and Fiscal 2025 Financial Results, the Company announced on Tuesday, March 4, 2026, “a business optimization plan (the ‘Optimization Plan’) to improve operational execution, strengthen long-term profitability and increase cash flow generation.”
Net sales for the year increased by 7.3% to $4.69 billion, gross profit increased 7.4% versus 2024 to $1.42 billion and gross margin was 30.3% compared to 30.2% in 2024. But the company’s operating loss was $221.7 million and net loss was $224.9 million compared to net income of $39.5 million, in 2024. Adjusted net income was $75.2 million compared to $76.3 million the previous year.
“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we’re moving quickly,” said Jason Potter, President and CEO of Grocery Outlet. “Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional in the fourth quarter. In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience. We’re intensely focused on restoring the opportunistic mix to rebuild value perception with the customer and advancing our store refresh program, and we’re already seeing early, measurable improvements. At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital. We are confident that we have identified the core challenges and now have the right plans in place and the right team to execute them.”
Optimization Plan and Restructuring Plan
As a result, the company announced those plans as follows:
“To strengthen long-term profitability and cash flow generation, improve operational execution, optimize our existing store footprint and align with our disciplined new store growth strategy, in the first quarter of fiscal 2026 we conducted a strategic, financial and operational analysis of our store fleet. Following that review, on March 2, 2026, our Board of Directors adopted the Optimization Plan that 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 (‘IOs’) for the applicable store locations as well as certain other store locations. These actions under the Optimization Plan are expected to be substantially completed during fiscal 2026.”
Grocery Outlet Partners with Independent Owner/Operators
According to the company’s website, “Since 1973, Grocery Outlet has partnered with retail leaders to operate their expanding locations. Our Independent Operators have considerable local-decision making autonomy over store operations including hiring, merchandising, marketing and more. You hire, train, and lead your team, doing what you do best, and then we share the profits of your retail store according to our commission structure. We each assume different risks but share the rewards.
“We support our Independent Operators with training, mentorship, marketing, finance and accounting professionals to assist with any questions or issues that come up.”
Contra Costa County Stores Not Closing
Kyle Noble, Grocery Outlet’s Senior Director of Marketing was asked if it is correct that stores in California are closing and if so, whether or not Antioch is included.
He was also asked since no list has apparently yet been publicly provided, when it will be, how long will the current owner/operators be given to prepare for their closures or if they have already been informed. Noble did not respond before publication time.
However, a store employee who chose not to be identified, informed the Herald the Antioch store located on Buchanan Road will not be closing.
Open since Nov. 12, 2015, the current owner/operators are Fadi Fayad and Kelly Talaie.
A report on Patch provided the list of the nine California stores to close which doesn’t include the six locations in Contra Costa County. The stores to close are in Azusa, Brawley, El Cajon, Kerman (near San Jose), La Habra, Ontario, Patterson, Poway and Ridgecrest.
The other two stores in East County include: Brentwood, located at 7610 Brentwood Blvd., has been open since October 6, 2021, and the current owner/operators are Greg and Lori Pitts. The Oakley store, located at 3110 Main Street, which has been open since March 26, 2015, and the current owner/operators are Matt and Karen Amaro.
In West County: the Pinole store, located at 1460 Fitzgerald Drive, has been open since June 10, 2010, and the current owner/operators are Sam and Asifa Ahmad. The Richmond store, located at 12010 San Pablo Avenue, has been open since May 23, 2013, and the current owner/operators are Sopheap and Sokna Yin. The San Pablo store is located at 2079 23rd Street, has been open since January 2, 1989, and the current owner/operators are Chivy Thath and Sophal Sok.
24 Stores to Close on East Coast
According to a KRON4 news report, “While no announcement has been made as to which stores will close…According to a report in the grocery industry trade publication, Grocery Drive, 24 of the stores set to close are on the East Coast.”
The company “currently operates around 17 stores in the Bay Area” and “more than half of Grocery Outlet stores are in California,” according to the report.
About Grocery Outlet:
Based in Emeryville, California, Grocery Outlet is a growth-oriented extreme value retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. Grocery Outlet and its subsidiaries have more than 560 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, Ohio, New Jersey, North Carolina, Georgia, Alabama, Delaware, Kentucky and Virginia.
Please check back later for any updates to this report.
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