Grocery Outlet Sales Rise 0.9% as Store Growth Slows

The bargain grocer found more shoppers, but it is getting choosier about where it opens doors. Grocery Outlet said third-quarter net sales rose 0.9% to $1.18 billion and comparable store sales gained 0.5%, according to its earnings release ^[1].

That is a turnaround after second-quarter comps fell 0.3%, Zacks Equity Research noted on Yahoo Finance ^[2].

The store count

• The chain opened 14 stores and closed none in the quarter, finishing with 561 stores in 16 states ^[1].
• Over the first 39 weeks of the year it opened 31 stores and closed 40, including 36 under its Optimization Plan ^[1].
• It now targets 30 to 31 net new stores in 2026, compared with 30 to 33 before, excluding plan closures ^[1].
• Planned 2026 capital spending, net of tenant improvement allowances, stays at $170 million ^[2].

But the closures still cost money. Grocery Outlet raised its estimate of total net restructuring charges to $22 million to $29 million, mainly because lease termination and idle property costs came in higher ^[1]. Gross margin also slipped to 30.0% from 30.4%, partly due to a Cyclospora outbreak that hurt produce demand ^[1]. Zacks estimated that outbreak cut quarterly comps by about 60 basis points ^[2].

What it means for you

By our math, the 36 closed stores equal about 6% of the current 561-store base, and each store averages about $2.1 million in quarterly sales. For owners of neighborhood shopping centers, that shows both sides: a tenant still adding about 30 stores a year, and one paying to exit leases where stores underperform ^[1].

Zoom out

Discount grocers are winning traffic, with transactions up 2.4% even as the average basket shrank 1.9% ^[1]. The company raised its 2026 comparable sales outlook to 0.2% to 0.4% and expects fourth-quarter comps of 1.5% to 2.5%, according to Zacks ^[2].