Grocery Outlet Closes 36 Stores Nationwide, Two in Philadelphia

Grocery Outlet is set to close 36 underperforming stores across the United States, including two locations in Philadelphia. The closures, announced by the discount retailer, are part of a strategy to streamline operations following a challenging fourth quarter. The affected stores in Philadelphia are situated at 2017 W. Oregon Ave. in South Philadelphia and 2524 Welsh Road in Northeast Philadelphia.

In addition to the Philadelphia closures, Grocery Outlet will shut down stores in Kennett Square, Chester County, and several locations in South Jersey, including Delran, Sicklerville, Gibbstown, Mays Landing, and Rio Grande. Jason Potter, CEO of Grocery Outlet, indicated that the company is implementing cost-cutting measures after expanding too rapidly. He noted that the delay in Supplemental Nutrition Assistance Program (SNAP) benefits due to last year’s federal government shutdown had a negative impact on sales.

“Store sales for the quarter were adversely impacted by the delayed disbursement of benefits,” Potter stated during the company’s earnings call. As of the start of 2023, Grocery Outlet operated 570 stores across 16 states, with a notable expansion that included 42 new openings in 2025. Most of the closures will affect stores located on the East Coast.

Despite these closures, Potter emphasized that Grocery Outlet is not exiting any state entirely. “We believe we have a meaningful opportunity to grow in the east over the long term,” he added. The company still maintains additional locations in Philadelphia, including stores in University City at 4301 Chestnut St., Sharswood at 2077 Ridge Ave., and Norris Square at 1801 American St..

As Grocery Outlet navigates these changes, the retailer aims to stabilize its operations while continuing to serve its customer base in the regions where it remains active.