Grocery Outlet, which has expanded significantly in Greater Philadelphia over the last several years, announced plans to scale back store expansion and refocus on existing and high-priority adjacent markets. The discount grocery chain, which recently introduced a new CEO, says it will spend up to $61 million on its restructuring plan.
The company also reported that net income for 2024 was $39.5 million, which is less than half the $79.4 million reported for the previous year.
Grocery Outlet projected last year that it would open 50 to 55 locations in 2025, but earlier this week Chairman Eric Lindberg said they are scaling that back to 33 to 35 net new stores. Furthermore, they plan to “exit leases with suboptimal locations.” He added that Grocery Outlet still has “the potential to open over 4,000 stores across the United States.”
The company currently operates 533 stores across 16 states.
