Popular supermarket chain liquidates favorite locations

The grocery retail sector has its hands full juggling several economic challenges that can prevent retailers from generating profits.

Inventory shrinkage, caused by shoplifting, employee theft, and other methods of retail theft, has been costly for grocery retailers.

Many grocery chains have put a lot of merchandise behind lock and key to help prevent shrinkage, but not all retailers are successful at preventing theft.

Related: Popular retail chain closing, files Chapter 11 bankruptcy

On top of theft, grocery chains face rising labor and product costs, changing consumer behavior, and fading customer loyalty.

Under-performing stores and above-market brick-and-mortar leases that no longer make sense also force retailers to close stores.

Kroger reveals dozens of store closings 

Huge grocery chain Kroger revealed in June 2025 that it would close 60 stores nationwide in the next 18 months.

Kroger also revealed that it would close two more stores in Houston this year, according to USA Today, Statesman Journal reported on Aug. 5.

Grocery Outlet closes popular location 

Discount supermarket chain Grocery Outlet is closing a popular California location, which operated for over 36 years, after losing its lease.

The owners of the grocery store, located on Zinfandel Drive in Rancho Cordova near Sacramento, revealed on their Facebook page on Aug. 3 that the store would close.

Related: Bankrupt home goods retail chain cancels more store closings

"We are saddened to announce that the Rancho Cordova Grocery Outlet in the corner of Zinfandel and Folsom Blvd will be closing permanently," the store's owners said on Facebook.

"Michael and Susan have been honored to serve the Rancho Cordova Community. We, along with our team, will deeply miss our customers," the message said.

Grocery Outlet offers up to 30% discounts

• Deli, meat, produce, wine, beer, 20% off.
• General Merchandise, health and beauty products, 30% off.

The store, which opened on Jan. 2, 1989, is currently conducting a liquidation sale with 20% off all deli, meat, produce, wine, and beer, and 30% off all general merchandise and health and beauty products.

The Rancho Cordova Grocery Outlet store will close on Aug. 23 as its lease expires, according to ABC10-TV.

More closings:

• Major furniture manufacturer closes down, no bankruptcy
• Iconic pizza chain’s franchisees close multiple restaurants
• Iconic retail chain closing over 100 stores in bankruptcy

The grocery store chain, however, revealed in March 2025 that it planned to open a new location in a former Rite Aid location in nearby Citrus Heights, Calif., Citrus Heights Messenger reported.

Grocery Outlet also closed two stores in the second quarter of 2025, but also opened 11 locations, according to its statement on its quarterly results.

Grocery Outlet Holding Corp. said it substantially completed in the second quarter its restructuring plan that began in the fourth quarter of 2024.

Grocery Outlet cancels 23 store leases

Under the plan, the company cancelled 23 store leases of unopened stores in underperforming locations, 15 of which were planned to open in 2025 and eight that were planned in 2026.

Grocery Outlet also cancelled costly warehouse projects and instead invested in lower-cost distribution centers for dry goods. The company also said it would lay off 40 employees in the first quarter of 2025.

Grocery Outlet's new Southeast territory:

• Tennessee
• North Carolina
• Georgia
• Alabama
• Kentucky
• Virginia.

Grocery Outlet Holding Corp. in April 2024 purchased United Grocery Outlet and its 40-supermarket chain in six Southeast states, including Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia from affiliates of Gen Cap America Inc.

By the end of 2024, Grocery Outlet had about 533 stores in 16 states, with 42 company-owned stores and the remaining 491 stores run by independent operators.