Discount Retail Chain Grocery Outlet is back opening stores, The Emeryville, Calif.-based retailer plans to open several locations in California after announcing 36 store closures earlier this year due to expanding in the wrong markets, according to multiple reports.
A store in Ontario Ranch will open next week, and the company has scheduled more openings in Ramona, San Francisco, Clovis and Petaluma.
Grocery Outlet plans to open 30 to 33 new stores this year.
During its first-quarter earnings call in May, Grocery Outlet said its restructuring efforts showed some progress. Despite the store closures, the company reported its Q1 sales rose 3.6% to $1.17 billion, which it attributed to new store openings. Comparable-store sales fell 1%, beating the company’s previous forecast of a 1.5% to 2.5% decline. The comp-store sales decline included a 3.1% decrease in average transaction size, partially offset by a 2.1% increase in transaction count.
“We made meaningful progress in increasing our opportunistic mix to offer more of the extreme value products that resonate with our customers,” Jason Potter, president and CEO, said during the call.
The retailer reported a Q1 net loss of $180.3 million, most of which it attributed to charges related to restructuring and goodwill impairment. Excluding the charges, the company said adjusted net income totaled $4.6 million. In the year-ago period, the retailer reported a net loss of $23.3 million and adjusted net income of $13 million.
When it announced the store closures, Grocery Outlet said it hired Gordon Brothers, an asset advisory firm, to market a portfolio of retail locations in California, Idaho, Pennsylvania, New Jersey, Maryland and Ohio.
Grocery Outlet plans to open 30 to 33 new stores this year.
Grocery Outlet is back opening stores
Grocery Outlet is back opening stores