Grocery Outlet to open stores in these Bay Area cities, amid plans to close 36 other locations
Grocery Outlet Bargain Market storefront showing company logo. (Photo by: Don and Melinda Crawford/UCG/Universal Images Group via Getty Images)
EMERYVILLE, Calif. - Bay Area-based Grocery Outlet this month announced the closure of 36 underperforming stores in California and around the country.
KTVU has learned that not only will none of the closures be in the Bay Area, plans are underway for the bargain retailer to open at least two new stores in the region.
What we know:
One will be in Oakland in the Eastlake neighborhood and the other will be in Moraga at the Rheem shopping center.
"We have a signed lease for the E. 18th Street location," Grocery Outlet spokesperson Suzanne Ciechalski shared with KTVU regarding the upcoming Oakland location, while also confirming, "We also have a signed lease for the Moraga location."
Headquartered in Emeryville, the company operates in 16 states and describes itself as an "extreme value retailer" offering big discounts on its products.
"Most products are sold at 40-70% less than regular retail prices," according to Grocery Outlet's website.
The company said it's able to offer customers bargain prices through its sourcing strategy.
"The company capitalizes on buying overstock and closeout items. This approach ensures a dynamic selection of products in each store," the chain explained.
Chief Executive Officer Jason Potter announced the closures earlier this month during the company's earnings call.
What they're saying:
"Following a rigorous analysis of the fleet, we identified 36 stores in the network that we concluded did not have a viable path to sustained profitability, regardless of the operational support we could provide," Potter said.
Potter said that most of the stores on the chopping block, 24 of them, are located in the East.
A handful of closures are expected in Central and Southern California locations.
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The CEO said that disruptions to Supplemental Nutrition Assistance Program (SNAP) benefits during the federal government shutdown last fall led to a drop in sales.
"November comps were weak, driven in part by the timing of EBT distributions that negatively impacted our SNAP business, and affordability pressure on our core customer increased more than we'd expected," Potter said. "What we eventually did experience in November was a double-digit decrease in EBT sales."
Dig deeper:
The closures come as many consumers are feeling the financial crunch of rising prices of goods and services.
According to the non-partisan research group, Tax Foundation, tariffs imposed in 2025 led to an increase of overall retail prices of imported goods of about 7 percentage points compared to pre-tariff figures.
More stores to open
Amid the plans for the closure, the grocer retailer said it was simultaneously planning to open 30 to 33 new stores this year, as the company takes a more disciplined business strategy.
"We're piloting new approaches to store openings to strengthen returns on capital," Potter said, adding, "We're scrutinizing every aspect of the business to remove distractions and improve shareholder value."
What's next:
As for the new Bay Area stores, construction has been under way in Moraga for several months now.
An official opening date has not been finalized in Oakland, but the company said it’s expected to happen in late 2026.
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