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CA Grocery Chain To Close 36 Stores
Grocery Outlet will close 36 stores, 6% of its fleet, to cut losses after rapid East Coast expansion and a $235 million operating loss last quarter, CEO said.
- On Wednesday, Grocery Outlet announced it will close 36 stores over the next year, with 24 in the eastern U.S., CEO Jason Potter said.
- For the fourth quarter ending Jan. 3, net sales rose nearly 11% to $1.2 billion while comparable-store sales slipped nearly 1% as executives cited consumer pressure, competition and SNAP funding disruptions last year.
- The company forecasts net restructuring charges $14 million to $25 million, a gross-profit hit $4 million to $6 million from markdowns, and annualized adjusted EBITDA improvement of approximately $12 million.
- Investors punished the stock, sending Grocery Outlet shares to an all-time low of $8.79 and cutting the price by more than 20% after dismal results including a nearly $235 million operating loss and 6% of store fleet removal.
- With 570 stores across 16 states, Grocery Outlet said it is not fully exiting any state and may repurpose some California locations into Whole Foods Markets, highlighting its independent-operator model.
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38 Articles
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Grocery Bargain Outlet Market is closing its stores in South Philly and Northeast Philly as part of a plan to shutter three dozen underperforming locations nationwide. Other stores are closing in Chester County and South Jersey.
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Discount grocery chain closing 36 stores after ‘expanding too quickly’
A national discount grocery store chain will be closing nearly 40 stores soon. Grocery Outlet announced that the California-based company will be closing 36 “financially underperforming stores” in the near future, according to a press release from the chain.
·Springfield, United States
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Coverage Details
Total News Sources38
Leaning Left6Leaning Right2Center23Last UpdatedBias Distribution74% Center
Bias Distribution
- 74% of the sources are Center
74% Center
L 19%
C 74%
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