Grocery Outlet Holding Corp. (NASDAQ: GO) is planning to close up to 36 underperforming stores after reporting a difficult fourth quarter that included declining comparable sales and a net loss of more than $218 million.
The Emeryville, CA-based “extreme-value” grocer posted Q4 net sales of $1.22 billion. That’s up 10.7% year over year, but comparable-store sales slipped 0.8% over the quarter. Adjusted earnings came in at $0.19 per share, up from $0.15 a year ago. Gross margin edged up slightly to 29.7%.
For the full fiscal year, Grocery Outlet generated $4.69 billion in net sales, up 7.3%, with comps increasing 0.5%. Despite that growth, the company recorded a net loss of $224.9 million for the year.
CEO Jason Potter said the company is moving quickly to address pressure on value-focused shoppers and heightened promotional competition. The company’s board has approved an “optimization plan” aimed at improving profitability and capital returns, including the closure of 36 locations expected to occur largely during fiscal 2026.
The moves come as Grocery Outlet attempts to rebuild its value perception by restoring a stronger mix of opportunistic closeout merchandise while accelerating store refreshes and tightening its new-store growth strategy.
Grocery Outlet’s has 570 stores across the country, with seven new locations opened in the last quarter of 2025. In 2026 the company is looking to add another 30 to this list. This closure list represents a small correction for underperforming stores in challenging locations.
Ultimately, Grocery Outlet’s treasure-hunt model is designed to thrive when shoppers trade down. But the company’s results suggest that today’s inflation-weary consumers are becoming more selective – hunting for value, but not necessarily in the same places they did a few years ago.
