The building where Kerman's Grocery Outlet is located was purchased by a Bay Area investor in 2022. Photo via Hanley Investment Group

The Grocery Outlet store in Kerman is among nine listed for closure as the company contends with substantial losses from struggling stores, restructuring costs and customer spending trends.

The Kerman store opened in 2021, and has changed hands of operators at least twice since. Chris Gomez and Kimberly Garcia became the new owners in 2024. 

“A lot of people are disappointed,” said Kerman Chamber of Commerce Executive Director Denise Baronian. “It’s so sudden.”

Baronian said the owners were informed about the decision last week, immediately contacting the chamber after hearing the news.

She said Gomez and Garcia embraced Kerman, hosting coat drives, Thanksgiving turkey giveaways and other events.

“Not only are they a member of the chamber, but they are very involved in the community,” Baronian said.

Kerman also recently saw the closures of Carl’s Jr. and KFC — two long-time establishments, Baronian added.

The newly built Grocery Outlet property was purchased by a Bay Area investor in 2022 . Hanley Investment Group, representing the unnamed seller, reported the sale of the 16,000 square-foot, single-tenant property for $6.37 million.

Grocery Outlet stores are independently owned and operated, giving operators autonomy over store operations, hiring, merchandising and other store operations. They make a commission from store sales.

Emeryville-based Grocery Outlet’s quarterly and annual 2025 report reveals a $264 million net-income swing from 2024 to 2025, bringing in over $39 million in 2024, while losses totaled nearly $225 million in 2025. Additionally, customer spending saw a notable drop per trip, due in part to delays in SNAP benefits, according to the retailer.

“The decline in comparable store sales was driven by a 1.7% decrease in average transaction size,” the report reads.

After opening 42 new locations in 2025, the retailer plans to slow growth in 2026, noting expansion and restructuring as another cause for store closures.

In addition to the nine California locations on the chopping block, the retailer plans to shutter 36 stores nationwide. The Kerman location will close April 25.

In addition to in-store challenges stemming from customer spending trends, the retailer also noted rising operating expenses, with an 8.5% increase over 2025 due to elevated incentive compensation and operator commissions, personnel costs from acquired stores and higher depreciation from new stores.

“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do,” said Jason Potter, president and CEO of Grocery Outlet. “In response, we have begun to sharpen our focus on what matters most: delivering clearer value and a better in-store experience.”