A POPULAR grocery chain with 524 stores has pulled the shutters down permanently on one branch.
Shoppers were devastated to learn their local Grocery Outlet site in north downtown Salem, Massachusetts, was closed down earlier this week.
Grocery Outlet waved goodbye to customers in north downtown Salem[/caption]
A spokesperson confirmed the move was partly sparked by their lease ending[/caption]
It originally opened in 2003 and has been a beloved staple for food shops in the local community.
However, the tough decision was made to make way for a new store at 3975 Commercial St. SE in South Salem.
Owner Mark Mazzuca revealed the latest location, near Browning Avenue, will welcome customers on September 25.
Mr Mazzuca, who has run the business for eighteen years, also confirmed all employees from the north downtown branch are set to be employed at the new store.
And, 14 more people are set to be introduced to the workforce.
A spokesperson confirmed the move was partly sparked by their lease ending.
Mr Mazzuca said: “We are at the point now where it is time to close the downtown store.
“While we are excited about the south Salem store — we are doing a lot of stuff to make it a success — there is a lot of sadness with this chapter coming to an end.”
The new site was previously home to a Piggly Wiggly grocers, a Super 6 Store, a preschool and indoor play area.
This comes after the grocery chain hit headlines at the start of the year when they announced a massive u-turn on its store openings expansion.
The company had previously unveiled plans to open over 50 stores this year alone – but now plans to half that number.
Grocery Outlet will undergo the huge restructuring that is likely to cost them millions, whilst facing a similarly huge profit drop-off.
Grocery Drive reported the revised plan saw the chain go from a plan of opening 50 to 55 new stores to 33 to 35.
The $52million-$61million project was started in Grocery Outlet’s fourth quarter in 2024, a year that “urgently” needs improving upon according to the Chairman Eric Lindberg.
He said: “On the surface, this is a simple business that performs very well when operations are executed properly.
“2024 was a year in which many critical operational elements were out of sync, which was further exacerbated by trying to do too much, too fast.
“But we’re working urgently to get back on track.
“A more narrowed focus to new store openings will allow our infrastructure to more effectively support our expansion efforts.”
The CEO of Grocery Outlet, Jason Potter, said: “We worked hard there to build a service culture and really working as a team on a clear, defined strategy.
“For sure, those are things I’ll take forward in my thinking here.
“These challenges and opportunities are familiar territory for me, as I’ve spearheaded multiple turnarounds across many grocery models.
“In each case, we were successful in driving sales profitability and ultimately returns for all stakeholders by improving collaboration, execution and the customer experience.”
Grocery Outlet struggled in 2024, raking in nearly half of the income it did in 2023, going from $79.4million to $39.5million.
The company ended the 2024 financial year with an over 11% increase in its general and administrative expenses.
As of January 2025, Grocery Outlet had 509 locations in the US, with 55%, or 279, of them being in California specifically.
The new location will open on September 25[/caption]
