After a brutal fourth quarter in which they somehow managed to lose a staggering $218 million, the Emeryville-based Grocery Outlet is shuttering 36 stores, though these may not be Bay Area stores that are closing.
Yes, the cult-favorite, oddball-item, discount grocery store Grocery Outlet Bargain Market is indeed a Bay Area company, their headquarters is in Emeryville. But they’re also a national chain, they have stores as far away as New York State. And considering that they're the white knight grocer who’s stepping in and filling that closed-up Fisherman's Wharf Safeway, things must be going financially just fabulously for Grocery Outlet Bargain Market, right?
Ugh, actually, not at all. The Chronicle reports that Grocery Outlet reported a stunning loss of $218 million in the fourth quarter of 2025, and as a result, the chain will be permanently closing 36 “financially underperforming” Grocery Outlet stores.
The chain is not yet saying which stores they’re closing, or where.
If that news makes you freak out that you might be losing your beloved neighborhood “Gross Out” location, there are some tea leaves to read that indicate the one near you might not be among them. The Chronicle cites a grocery industry publication called Grocery Dive that says “24 of [the closing stores] are on the East Coast.” So most of the stores they’re shuttering are nowhere near California.
“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,” Grocery Outlet president and CEO said in his best face-saving statement. “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.”
Per the Chron, Grocery Outlet blames the big fourth-quarter losses on the Trump administration’s severe cuts in SNAP benefits. Considering that people are going to lose their jobs over this, it’s another sign that Trump's cruelty-is-the-point budget cuts are genuinely hurting the overall economy.
As the Chronicle reported Thursday, “the company’s stock fell about 24% in after-hours trading after the announcement.”
Related: Grocery Outlet Bargain Market On Verge of Coming to Fisherman’s Wharf [SFist]
Image: Jennifer O via Yelp
