The Grocery Outlet Bargain Market chain, a relative newcomer to the New Jersey retail landscape, announced plans to close 36 stores across the country including six locations in New Jersey.
The list includes the following Grocery Outlet stores in New Jersey: Delran — 4004 Route 130; Gibbstown — 401 Harmony Road; Hazlet — 3057 NJ-35; Mays Landing — 190 Hamilton Commons Drive; Rio Grande — 3174 Route 9, Suite 5; Sicklerville — 677 Berlin Cross Keys Road. The Hazlet store opened just three years ago. It was the third store to open in New Jersey.
The Emeryville, Calif.-based grocery outlet said it is the country’s largest retailer of closeout merchandise and excess inventory, according to the company’s website. It currently has 560 stores in 16 states. The store offers bargains for name-brand merchandise, from housewares to sporting goods to flooring and food.
Grocery Outlet on March 4 reported a net loss for the year of $224.9 million, or $2.30 per diluted share, compared with net income of $39.5 million, or 40 cents, last year. Comparable store sales increased by just 0.5% on a 52-week basis and gross margin was 30.3% compared with 30.2% a year ago.
In the fourth quarter, the net loss for Grocery Outlet was $218.2 million, or $2.22 per diluted share, compared with net income of $2.3 million, or 2 cents, last year. Comparable store sales declined by 0.8% on a 13-week basis. Gross margin was 29.7% compared with 29.5% last year.
The chain announced the store closures in its fourth-quarter and full-year results on Wednesday, disclosing its restructuring plan. The company said it conducted a strategic financial and operational analysis of its store fleet and on March 2, its board adopted the plan to close 36 financially underperforming stores. Grocery Outlet said the closings “are expected to be substantially completed during fiscal 2026.”
“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 a statement. Potter cited intensified consumer pressure, delays in federally funded benefits and competition became more promotional in the fourth quarter.
“We’re intensely focused on restoring the opportunistic mix to rebuild value perception with the customer and advancing our store refresh program, and we’re already seeing early, measurable improvements. 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.”
