Grocery Outlet Holding Corp. announced the opening of its first store in Virginia, located in Falls Church, with a grand opening scheduled for February 12, 2026. The move marks the company’s entry into a new state and its sixteenth market, expanding its footprint beyond the 16 states it already serves.
With more than 560 stores nationwide, Grocery Outlet has built a reputation for offering name‑brand groceries at 40% to 70% below conventional retailers. The Virginia launch is part of a disciplined growth strategy that prioritizes high‑margin, high‑volume markets where the company’s extreme‑value model can capture underserved consumers, including those in food‑desert communities.
The new store will be built to the company’s refreshed layout, a key element of the 2025 store‑refresh program that has already improved comparable‑store sales in pilot locations. The program focuses on modernized merchandising, expanded core assortments, and stronger value messaging, and is expected to lift sales and margins in new openings.
Financially, Grocery Outlet reported Q3 2025 results that showed a 5.4% increase in net sales to $1.17 billion, but comparable‑store sales grew only 1.2% and gross margin slipped to 30.4% from 31.1% the prior year. The margin compression reflects higher promotional spend and cost inflation, while the modest sales growth signals competitive pressure in the discount‑grocer segment.
The Virginia market brings Grocery Outlet into a region dominated by established players such as Giant, Harris Teeter, Aldi, and Whole Foods. By leveraging its extreme‑value proposition and the store‑refresh design, the company aims to differentiate itself and capture market share in a competitive landscape that has historically been underserved by discount grocers.
CEO Jason Potter said the expansion demonstrates the company’s confidence in its growth model and its ability to execute in new markets. He added that the refreshed store design will help drive comparable‑store sales and margin improvement, reinforcing Grocery Outlet’s long‑term goal of expanding to over 4,000 stores nationwide.
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