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March 06, 2026

Grocery Outlet to close 36 stores, including 2 in Philly

The chain says it expanded too quickly and that sales slumped when SNAP benefits were delayed by the federal government shutdown.

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Grocery Outlet Closures Street View/Google Maps

Grocery Outlet Bargain Market is closing 36 stores nationwide, including its store at 2524 Welsh Road in Northeast Philly, above, and the location at 2017 W. Oregon Ave. in South Philly.

Grocery Bargain Outlet Market is closing two stores in Philadelphia as part of a plan to shutter three dozen underperforming locations nationwide, the discount retailer said.

The chain's South Philly store at 2017 W. Oregon Ave. and its Northeast Philly store at 2524 Welsh Road are both on the company's list of closures.


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Other closures in the region include a store in Kennett Square, Chester County, and South Jersey stores in Delran, Sicklerville, Gibbstown, Mays Landing and Rio Grande.

Grocery Outlet is taking cost-cutting measures after expanding too quickly and having a slow fourth quarter, CEO Jason Potter said. He cited last year's federal government shutdown, which delayed Supplemental Nutrition Assistance Program benefits for many Grocery Outlet customers.

"Store sales for the quarter were adversely impacted by the delayed disbursement of benefits," Potter said.

The California-based chain entered the year with 570 stores in 16 states, including 42 that opened in 2025. Most of the stores that will close are in East Coast states.

"We are not fully exiting any state, and we believe we have a meaningful opportunity to grow in the east over the long term," Potter said during the company's earnings call on Tuesday.

Grocery Outlet still has locations in University City (4301 Chestnut St.), Sharswood (2077 Ridge Ave.) and Norris Square (1801 American St.).

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