Grocery Outlet Scales Back: Eight Maryland Stores to Close, Salisbury Location Spared

In a move to shore up profitability, discount grocer Grocery Outlet announced the closure of 36 stores across its network. While eight Maryland locations are slated to shut down, the company confirmed its store in Salisbury at 2653 N. Salisbury Boulevard is not on the list.

The affected Maryland stores are located in Baltimore, Catonsville, Cockeysville, Columbia, Hagerstown, Nottingham, Owings Mills, and Westminster. The decision follows what company leadership called an overly aggressive expansion strategy in recent years.

"Our long-term commitment to the Eastern U.S. remains firm," said Grocery Outlet President and CEO Jason Potter during a recent investor call. "However, it's become evident that we grew too rapidly in certain areas. These closures are a necessary correction to ensure our future growth is sustainable and profitable."

The announcement highlights the ongoing pressures in the competitive grocery sector, where discount chains face stiff competition from large national retailers and regional players. Grocery Outlet's model, which relies on purchasing surplus and closeout goods, requires careful market selection to maintain margins.

Potter noted that the company's 51 other Eastern U.S. stores have been performing well, ending the last quarter with a 3.3% sales increase. The closures are expected to improve the company's adjusted earnings before interest, taxes, and depreciation by approximately $12 million.

The company ended 2025 with 570 stores across 16 states, following a year that saw 42 openings and only five closures. Potter characterized the recent fourth-quarter results as "unacceptable," signaling a more cautious approach ahead.

Community Voices

Michael Torres, Small Business Owner in Westminster: "It's a real blow to our plaza. That store brought in consistent foot traffic. For families on tight budgets, it was a lifeline. It feels like corporate decisions made far away don't consider the local impact."

Linda Chen, Retail Analyst at Chesapeake Financial Insights: "This is a prudent, if painful, recalibration. The grocery landscape is brutally competitive. By exiting underperforming locations, Grocery Outlet can strengthen its balance sheet and refocus investment on markets where its unique model resonates strongest."

Debra "Deb" Miller, Community Advocate in Catonsville: "Unacceptable? Try devastating! They swooped in, promised savings, and now they're pulling out, leaving another empty storefront and fewer options for folks who count on those discounts. It's corporate greed plain and simple—expand wildly, then abandon communities when the going gets tough."

Robert Evans, Salisbury Resident: "Relieved our store is staying open. We shop there weekly. It makes you wonder what made the difference—was it our local support, or just better demographics on a spreadsheet? Either way, I'm glad we kept it."

Reporting contributions from Shannon Marvel McNaught of the Delaware News Journal and Saleen Martin of USA Today.