Grocery Outlet has announced that it is closing 36 underperforming stores nationwide, which is set to impact two Philadelphia locations, writes Michael Tanenbaum for PhillyVoice.
The two closures will occur at its Northeast Philadelphia store at 2524 Welsh Road and its 2017 W. Oregon Avenue store in South Philadelphia, respectively. The former closed on March 8, while the latter will close on March 21.
According to Grocery Outlet CEO Jason Potter, the bargain market chain’s decision to close so many stores as a cost-cutting measure due to expanding too quickly and a slow fourth quarter last year.
In addition, last year’s government shutdown, which delayed SNAP benefits for many Grocery Outlet customers also had a negative impact.
“Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional in the fourth quarter. In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience,” Potter said in a statement.
While two Philadelphia locations will be closing, its three others — in Sharswood, University City, and Norris Square, respectively — will remain open for the time being.
Entering 2026, Grocery Outlet had 570 stores across 16 states, with 42 of them opening within the last year.
Read more about Grocery Outlet’s decision to close several of its stores at PhillyVoice.
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