Grocery Outlet Closes San Diego County Stores as Part of Nationwide Restructuring

Grocery Outlet is closing two stores in San Diego County as part of a larger restructuring plan that will see 36 stores shuttered across the nation. The move, announced last week, aims to improve the company’s profitability and cash flow, according to a press release to investors.

Which San Diego County Locations Are Closing?

The affected stores in San Diego County are located in:

• El Cajon: 350 N. 2nd Street
• Poway: 13345 Poway Road

Grocery Outlet currently operates 20 stores throughout San Diego County. The closures are part of a broader plan to close nine stores in California, with a total of 36 stores closing nationwide in states including Idaho, Maryland, New Jersey, Ohio, and Pennsylvania. FOX 5 San Diego reports that the closures are impacting stores ranging in size from 14,000 to 30,000 square feet, with the San Diego locations being on the smaller end, around 15,000 to 16,000 square feet.

Why is Grocery Outlet Closing Stores?

The company has identified the closing stores as “financially underperforming.” Jason Potter, President and CEO of Grocery Outlet, stated that while the company made progress in 2025, it fell short in the last quarter. Factors contributing to this include increased competition and consumer pressure. The San Diego Union-Tribune likewise notes that a decrease in federally-funded assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), impacted consumer spending at the chain.

What is Grocery Outlet Doing to Improve?

Grocery Outlet’s “business optimization plan” focuses on improving operational execution, strengthening long-term profitability, and increasing cash flow generation. The company intends to focus on refreshing stores, enhancing the customer experience, and delivering greater value to shoppers.

What’s Next?

No specific closing dates for the San Diego locations have been announced. The closures are expected to occur throughout the year. Grocery Outlet continues to operate 570 stores in 16 states.