NJ Grocery Chain Planning Dozens Of Store Closures

Grocery Outlet, a California-based grocery chain with multiple New Jersey locations, plans to close dozens of its supermarkets as it charts a path out of financial difficulties.

On Wednesday, the grocer announced that it plans to close 36 stores over the next year as part of an “optimization plan.”

"We identified 36 stores in the network that we concluded did not have a viable path to sustained profitability," CEO Jason Potter said on the company's quarterly earnings call.

Of the 36 stores set to be closed, 24 are located in the eastern part of the U.S., where the retailer has recently expanded.

The company has not yet identified where the 36 stores set to close are located.

"It's clear now that we expanded too quickly, and these closures are a direct correction," Potter said.

In total, Grocery Outlet has 570 stores across 16 states.

The grocer is a discount grocery chain with a unique independent operator business model, which differs from typical franchises in that store managers profit-share with the company based on the store's performance over time.

In New Jersey, Grocery Outlet has locations in:

• Hamilton
• Medford
• Hazlet
• Delran
• Deptford
• Sicklerville
• Mays Landing
• Gibbstown
• Rio Grande

Despite the planned closures of Grocery Outlet locations, the chain is also set to open new locations. According to Potter, the company will open “another 30-33 net new stores in 2026.”

"We plan to expand with a more clustered model to improve supply chain efficiency and marketing leverage," he said.

During the last quarter, Grocery Outlet saw net sales increase — up around 11% compared to the same time the year before. Despite this, it recorded an operating loss of $234.8 million.

Potter said increased consumer pressure and competition, along with disruptions to government assistance programs during last year's government shutdown, were partly to blame.

This story contains reporting from Patch Editor Chris Lindahl