Ontario Ranch, California — Grocery Outlet Bargain Market is resuming its California expansion just months after shutting down dozens of stores across the country, signaling a new growth strategy focused on stronger-performing markets.
The Emeryville-based discount supermarket chain announced that its newest location will open in Ontario Ranch on July 23, with additional stores scheduled to debut in Ramona, San Francisco, Clovis and Petaluma before the end of August.
The latest openings are part of a broader plan to launch at least 30 new stores nationwide during 2026.
Expansion Follows Closure of 36 Stores Nationwide
The new store openings come after Grocery Outlet announced earlier this year that it would close 36 underperforming locations across the United States.
According to company reports, nine of those stores were located in California, although Grocery Outlet did not publicly identify the affected locations when the closures were announced.
Instead, the properties were reportedly listed for sublease through an advisory firm.
One of the previously listed stores was located in Ontario, less than seven miles from the company’s upcoming Ontario Ranch location, highlighting the retailer’s strategy of shifting operations into markets it believes offer stronger long-term growth.
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Southern California Among Areas Affected by Closures
Several Southern California communities were impacted by the earlier restructuring.
Locations reportedly identified for closure included stores in Azusa, Brawley, El Cajon, La Habra, Ontario and Poway, along with three stores in Central California.
Additional closures were reported in Idaho, New Jersey, Maryland, Ohio and Pennsylvania as the company adjusted its national footprint.
Company executives have said the closures were designed to improve profitability by exiting markets that failed to meet long-term expectations.
Company Reports Stronger Sales After Strategy Shift
Grocery Outlet says the restructuring has already begun producing positive financial results.
According to the company’s first-quarter earnings report, sales increased 3.6% year over year to $1.17 billion, a gain executives partially credited to new store openings and improved merchandising.
CEO Jason Potter said the company has focused on offering more deeply discounted products that appeal to value-conscious shoppers.
“We made meaningful progress in increasing our opportunistic mix to offer more of the extreme value products that resonate with our customers,” Potter said during the company’s first-quarter earnings call.
The retailer believes its revised strategy will support continued expansion while strengthening performance in existing markets.
Facial Recognition Technology Also Rolling Out
Alongside its expansion efforts, Grocery Outlet has reportedly begun introducing facial recognition technology at some California stores in an effort to reduce shoplifting.
The company has not disclosed how many locations currently use the technology or whether additional stores will receive the system in the coming months.
As Grocery Outlet continues opening new locations and refining its operations, the retailer appears to be balancing growth with investments aimed at improving store security and overall performance.
With dozens of new stores planned and stronger quarterly results, the discount grocery chain is positioning itself for another phase of expansion after a year marked by significant restructuring.
Do you shop at Grocery Outlet? What would you like to see from the retailer as it opens more stores across California? Share your thoughts and experiences in the comments below.
