Discount Grocery Chain To Close 8 MD Stores, Dozens Nationwide

Updated at 3:10 p.m.

Discount supermarket chain Grocery Outlet plans to close dozens of locations, including eight in Maryland, as it charts a path out of financial difficulties stemming from recent expansion efforts.

The grocer on Wednesday announced it plans to close 36 underperforming stores over the next year as part of an "optimization plan."

"We identified stores in the network that we concluded did not have a viable path to sustained profitability," CEO Jason Potter said on the company's quarterly earnings call.

Currently, Grocery Outlet has 15 locations in Maryland. The following eight were identified among the closures:

• 1753 Chesaco Ave., Baltimore
• 6510 Baltimore National Pike, Catonsville
• 598 Cranbrook Rd., Cockeysville
• 5410 Lynx Lane, Columbia
• 1713 Massey Blvd., Hagerstown
• 7660 Belair Rd., Nottingham
• 11120 Reisterstown Rd., Owings Mills
• 200 Clifton Blvd., Westminster

Of the stores slated for closure, 24 are located in the eastern United States, where the retailer has recently expanded.

SEE ALSO: This Popular Trader Joe's Item Recalled: What MD Shoppers Should Know

"It's clear now that we expanded too quickly, and these closures are a direct correction," Potter said.

Grocery Outlet has 570 stores across 16 states. Grocery Outlet is a discount grocery chain with a unique independent operator business model, which differs from typical franchises in that store managers profit-share with the company based on the store's performance over time.

Despite the planned closures, Grocery Outlet is also set to open new locations. The company will open "another 30 to 33 net new stores in 2026," Potter said.

"We plan to expand with a more clustered model to improve supply chain efficiency and marketing leverage," he said.

Grocery Outlet saw net sales increase during the last quarter, up around 11% compared to the same time the year before; however, it recorded an operating loss of $234.8 million.

Potter said increased consumer pressure and competition, along with disruptions to government assistance programs during last year's government shutdown, were partly to blame.

Grocery Outlet isn't the only supermarket company eyeing closures.

Kroger announced plans last year to close 60 stores.

In January, Amazon said it would close every single one of its Amazon Fresh and Go stores nationwide. Some of its Maryland locations could be repurposed into Whole Foods Markets.