Grocery Outlet Closing Rio Grande Store

Grocery Outlet Closing Rio Grande Store

Grocery Outlet Holding Corp. has announced plans to close dozens of underperforming locations across the country, and the company’s Rio Grande, New Jersey store will be among those shutting down.

The decision comes as part of a newly announced “Optimization Plan,” which the company says is designed to improve long-term profitability, streamline operations, and strengthen cash flow generation.

The discount grocery chain revealed the plan while releasing its fourth quarter and full fiscal year financial results for fiscal 2025. While Grocery Outlet reported overall revenue growth, the company also posted a significant net loss and said several locations were not performing at the level needed to remain open.

Under the plan, Grocery Outlet will close 36 financially underperforming stores nationwide during fiscal 2026. These closures are intended to help the company refocus resources on stronger-performing markets and improve its overall store portfolio.

Although the company did not publicly list every location slated for closure in the announcement, the Grocery Outlet store located in Rio Grande, New Jersey will be among the locations closing as part of the restructuring effort.

The Rio Grande store opened as part of the chain’s expansion into the East Coast and was located in the Grande Shopping Center at 3182 Route 9, the same plaza that houses Mattress Firm and Harbor Freight Tools. The building previously operated as the Joy Buffet before being converted into the discount grocery store.

At the time of its opening, Grocery Outlet was working to grow its presence beyond its West Coast roots. The company, founded in 1946 in California, built a reputation for offering brand-name groceries and household products at steep discounts by purchasing surplus or overstocked inventory from major manufacturers.

This opportunistic buying model allowed the chain to offer shoppers constantly changing inventory and significant savings compared to traditional supermarkets.

The Rio Grande location was one of only a handful of Grocery Outlet stores in New Jersey. The company’s first location in the state opened in Delran in 2022, marking the start of its push into the region.

However, the company now says shifting consumer behavior and increased competition have made some locations difficult to sustain.

“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we’re moving quickly,” said Jason Potter, President and CEO of Grocery Outlet, in the earnings announcement.

Potter said consumer pressure intensified late in the year, particularly as federally funded assistance benefits many customers rely on were delayed and competitors became more aggressive with promotions.

“In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience,” Potter said. “At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital.”

Despite the closures, the company’s overall footprint has continued to grow. Grocery Outlet reported 570 stores operating in 16 states at the end of the fourth quarter, after opening seven new stores during the period.

For the full fiscal year, Grocery Outlet reported net sales of $4.69 billion, an increase of 7.3 percent from the previous year. However, the company also posted a net loss of $224.9 million, largely due to impairment charges tied to underperforming stores and restructuring efforts.

The Optimization Plan is expected to be completed during fiscal 2026, with the company estimating between $14 million and $25 million in restructuring costs related to lease terminations, store wind-downs, and other adjustments.

A timeline for when the Rio Grande Grocery Outlet will officially close has not yet been announced, but the company indicated that closures tied to the plan will take place throughout the year as operations wind down at affected locations.