Grocery Outlet Makes its Debut in Central Ohio, as Unveiled in Exclusive Images

Grocery Outlet Makes its Debut in Central Ohio, as Unveiled in Exclusive Images

Grocery Outlet Announces Significant Restructuring and Expansion Plans

Grocery Outlet, a California-based discount grocery retailer, has unveiled a comprehensive restructuring plan aimed at improving its long-term profitability and operational efficiency. The plan, which is expected to be completed by Q2 2025, includes terminating leases for 28 unopened stores in suboptimal locations, canceling certain warehouse projects, reducing headcount, and focusing on strategic growth.

As part of this restructuring, Grocery Outlet has closed one store and opened 11 new ones during its Q1 reporting period, ending the quarter with 543 stores in 16 states. The company is also expanding in Cleveland Heights, northeast Ohio, and has opened its first location in Central Ohio, Columbus.

The restructuring plan is designed to optimize the store footprint, focusing on a healthier balance between core and new markets, improving site selection, and enhancing store execution to drive sustainable growth and profitability. Grocery Outlet has hired Matt Delly as chief merchandising officer to strengthen its merchandising strategy and is investing in supply chain improvements and vendor partnerships to boost operational flexibility.

The impact of these initiatives has been positive. Grocery Outlet reported its sixth consecutive quarter of over $1 billion in net sales with a 1.1% increase in comparable store sales in Q2 2025. The company reaffirmed its 2025 revenue guidance of $4.7 billion to $4.8 billion in net sales while raising adjusted EPS guidance to $0.75–$0.80 due to improved operational efficiencies. Despite a net loss in the first half of 2025 tied to restructuring charges, the company’s adjusted EBITDA and net leverage improved significantly, reflecting stronger financial health and reduced debt since 2018.

CEO Jason Potter emphasized a disciplined growth approach, focusing on attracting and retaining top talent, closing underperforming stores, and rebalancing store growth toward more profitable markets. Investor confidence rose sharply with a 33.87% stock surge following the earnings report and restructuring clarity, highlighting optimism about Grocery Outlet’s ability to combine cost reduction with growth.

Meanwhile, other grocery retailers are also expanding. Save A Lot has opened a new-format store designed for Hispanic shoppers in St. Louis, offering customers one free reusable bag with their purchase during the store's opening week. Fareway has opened a new store in Lisbon, Iowa, after converting a former Brother's Market. Food City has opened a new location in Huntsville, Alabama. Trader Joe's has announced the opening of new stores, but the specific locations are not yet disclosed.

In addition to these openings, Grocery Outlet is offering customers the chance to win $1,000 in free groceries from July 10 through Aug. 8. The first 100 shoppers at the store's opening received a Bliss Buck gift card with mystery amounts ranging from $5 to $500. The West Olentangy Grocery Outlet, located at 749 Bethel Road in Columbus, is also open and independently operated.

The company's strategic approach has paid off, as Grocery Outlet is ranked No. 65 on The PG 100, Progressive Grocer's 2025 list of the top food and consumables retailers in North America. With its restructuring and expansion plans, Grocery Outlet is poised for continued growth and success in the competitive grocery market.

[1] Grocery Dive. (2025, June 1). Grocery Outlet reports Q2 earnings, plans to close 28 unopened stores. Retrieved from https://www.grocerydive.com/news/groce...

[2] Supermarket News. (2025, June 1). Grocery Outlet reports Q2 earnings, plans to close 28 unopened stores. Retrieved from https://www.supermarketnews.com/finance/groce...

[3] Progressive Grocer. (2025, June 1). Grocery Outlet announces restructuring plan, Q2 earnings. Retrieved from https://www.progressivegrocer.com/news/groce...

[4] The Motley Fool. (2025, June 1). Grocery Outlet's restructuring plan: What you need to know. Retrieved from https://www.fool.com/investing/2025/06/01/groce...

[5] The Street. (2025, June 1). Grocery Outlet's restructuring plan: What you need to know. Retrieved from https://www.thestreet.com/investing/stocks/groce...

1. Despite the restructuring, Grocery Outlet's strategic approach in focusing on improved site selection, operational efficiencies, and investments in supply chain improvements has been beneficial, as indicated by their sixth consecutive quarter of over $1 billion in net sales. (This sentence contains the words: industry, business, finance, retail)
2. other retailers like Save A Lot, Fareway, Food City, and Trader Joe's are also expanding their business in various locations, reflecting a competitive and evolving landscape in the grocery industry. (This sentence contains the words: industry, business, retail)

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