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Grocery Outlet Bargain Market to Close 36 Stores, Including Several in Pennsylvania and New Jersey

Grocery Outlet Bargain Market, a California-based discount grocery chain, has announced plans to close 36 underperforming stores across six states, including multiple locations in Pennsylvania and New Jersey. The closures are part of the company’s “Optimization Plan,” aimed at addressing financial losses and streamlining operations.

Reasons for the Closures

Jason Potter, President and CEO of Grocery Outlet, cited rapid expansion and changes in SNAP benefits as key factors impacting the company’s core customer base. The decision follows a reported $218.2 million net loss in the fourth quarter of 2025, compared to a $2.3 million net income the previous year.

Affected Locations

The closures will impact stores in California, Idaho, Maryland, Ohio, Pennsylvania, and New Jersey. Locally, the following stores are slated to close:

Pennsylvania:

  • 2017 West Oregon Avenue, Philadelphia
  • 2524 Welsh Road, Philadelphia
  • 345 Scarlett Road, Kennett Square
  • 18993 Park Avenue, Meadville

New Jersey:

  • 4004 Route 130, Delran
  • 401 Harmony Road, Gibbstown
  • 190 Hamilton Commons Drive, Mays Landing
  • 3174 Route 9, Suite 5, Rio Grande
  • 677 Berlin Cross Keys Road, Sicklerville

Timeline and Next Steps

The company plans to complete the closures during the 2026 fiscal year. Affected locations are being listed for sublease through a management company. Meanwhile, Grocery Outlet continues to operate over 560 stores across 16 states.

This move marks a significant shift for the retailer as it seeks to stabilize its financial footing and adapt to changing market conditions.