A fond farewell to a neighborhood staple—surprise closure hits a popular grocery chain’s north downtown Salem branch for good

For years, bargain hunters and families relied on their neighborhood grocery store for deals, community, and familiarity.

Shoppers who frequented the aisles of this trusted chain found more than food—it became a gathering place that had been part of daily life since 2003.

But as of this week, the doors have closed for good, leaving loyal shoppers with a bittersweet mix of nostalgia and uncertainty.


The closure of the north downtown Salem Grocery Outlet marks the end of an era. For over two decades, it’s been the go-to spot for families, seniors, and savvy shoppers looking to stretch their dollars.

Owner Mark Mazzuca, who’s helmed the store for 18 years, expressed both excitement and sadness about the transition. “We are at the point now where it is time to close the downtown store,” he shared.

“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.”

But it’s not all doom and gloom. The closure isn’t a goodbye but more of a “see you down the road.” The entire staff from the north downtown location will be moving to the new store at 3975 Commercial St. SE in South Salem, which opens its doors on September 25.

Even better, the new location is adding 14 more jobs, giving the community a small boost and ensuring familiar faces will still greet you in the aisles.


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A chain in transition. Image source: Abigal Dollins / Statesman Journal


So, why the sudden change? Part of the decision came down to the end of the lease at the downtown spot.

But there’s more to the story. The new South Salem location offers a fresh start in a space with a rich local history—it previously housed a Piggly Wiggly, a Super 6 Store, and even a preschool and indoor play area.

The move is a chance to modernize, expand, and hopefully serve the community even better.

Grocery Outlet’s Salem shuffle is just one piece of a much larger puzzle. The company, which boasts over 500 stores nationwide (with more than half in California), has been facing some tough times.

At the start of 2024, the chain announced ambitious plans to open 50 to 55 new stores. But as the year unfolded, reality set in.


Also read: Grocery landscape shifting: Major new player expanding fast with lower prices than Walmart and Target

Operational hiccups, rising costs, and a need to “urgently” improve performance led to a dramatic scaling back—now, only 33 to 35 new stores are on the docket.

Chairman Eric Lindberg put it bluntly: “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.”

The company’s profits took a nosedive, dropping from $79.4 million in 2023 to just $39.5 million in 2024, while expenses ballooned by over 11%.

It’s a classic case of growing pains, and Grocery Outlet is now focused on steadying the ship before setting sail for further expansion.

Read next: These six At Home stores are closing—and shoppers can score up to 30% off before they go
Key Takeaways

  • Grocery Outlet has permanently closed its north downtown Salem store, which had served the community since 2003, to make way for a new store opening in South Salem on September 25.
  • All employees from the closed branch will be offered positions at the new South Salem site, and an extra 14 people are set to join the team.
  • The closure was influenced in part by the ending of their lease, and the new store is located at a site that has previously housed several other businesses.
  • Grocery Outlet has scaled back its planned store expansion for 2024, reducing its new store openings from over 50 to about 33 to 35, after struggling with profitability and rising expenses in 2024.
Have you been affected by a local store closure? Do you have fond memories of your neighborhood Grocery Outlet, or tips for making the most of a new location?
 

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