Grocery Outlet to Shutter 36 Underperforming Stores Nationwide; Bucks County Locations Spared
In a significant retrenchment, discount grocer Grocery Outlet announced plans to close 36 underperforming stores across the country over the coming months. The move comes as the company grapples with steep financial losses despite rising sales, signaling a strategic shift under CEO Jason Potter.
"Our fourth quarter results were unacceptable," Potter stated bluntly during a March 4 earnings call. He attributed the poor performance to intensified consumer budget pressures, delayed federal benefits, and heightened promotional competition from rivals in the crucial holiday quarter.
The closures will hit the East Coast particularly hard, accounting for 24 of the 36 shuttered stores. This eliminates over 30% of the region's footprint, a stark reversal for a chain that had expanded aggressively there. Potter admitted the company "expanded too quickly" in the region, calling the closures a "direct correction." He emphasized, however, that the remaining 51 East Coast stores are profitable and that the company is not fully exiting any state.
For shoppers in Bucks County, Pennsylvania, the news brings relief. The county's four Grocery Outlet locations—in Quakertown, Warminster, Jamison, and Fairless Hills—are all independently owned and operated by local families. Owners of all four stores confirmed to PhillyBurbs.com on March 5 that their locations are not on the closure list. The chain first entered the Bucks County market in 2016.
The decision follows a dismal financial year. Grocery Outlet's fiscal 2025 summary revealed a staggering $224.9 million net loss, despite a 7.3% increase in net sales. The company is now adopting a "more disciplined approach." While Potter expressed optimism for long-term growth and plans to open 30-33 net new stores in 2026, the immediate focus is on stabilizing the business by cutting its losses.
A company spokesperson did not provide a full list of closures by press time.
Local Reaction
Michael Torres, Warminster Resident: "It's a relief our store is safe. For a lot of families here, those discounts make a real difference with today's food prices. It's worrying to see so many closing elsewhere, though."
Linda Chen, Small Business Owner, Doylestown: "This is a classic case of corporate overreach. They chased growth at all costs, saturated markets, and now communities and employees pay the price. It's a hollow 'correction' for the people losing their local store."
Robert "Bob" Finley, Retiree, Quakertown: "I shop at the Outlet every week. The owners are our neighbors. This news shows the value of that local franchise model—they're invested here. I'm glad corporate is finally being realistic about where they can actually succeed."
Sarah Jennings, Food Policy Analyst: "This consolidation reflects broader pressures in the value grocery segment. With inflation straining wallets, competition is fierce. Grocery Outlet's pullback suggests a recalibration to protect margins, but it also reduces options for cost-conscious consumers in affected areas."
Reporter Michele Haddon covers local news, small business, food and drink, economic revitalization, art and culture for The Intelligencer and Bucks County Courier Times at PhillyBurbs.com. Please consider supporting local journalism with a subscription.
This article originally appeared on Bucks County Courier Times.