Key takeaways
- Best Bargains is closing all three of its Wisconsin stores after entering receivership
- Save A Lot has lost approximately 350 locations since 2020, while Grocery Outlet closed 40 stores
- Rising operating costs, intense competition and financial pressures are forcing some US discount grocery chains to shrink their store networks
Discount grocery stores in the United States are shutting down locations due rising operating costs, fierce competition and financial difficulties.
The latest casualty is Wisconsin-based Best Bargains, which is winding down all three of its stores after entering receivership earlier this month. This follows closures at Save A Lot and Grocery Outlet.
Best Bargains Closing All Three Stores After Financial Troubles
Best Bargains is a discount food retailer and wholesaler operating in southeastern Wisconsin, and was expected to close its remaining locations over the Oct. 17–18 weekend. The closures affect stores in Burlington, Elkhorn and New Munster.
According to the Milwaukee Business Journal, the company entered receivership on Oct. 5, with court-appointed receiver Seth Dizard overseeing the winding down of operations.
Financial documents revealed approximately $4.18 million in bank debt and another $2.35 million in accounts payable and subordinated debt. Owner Doug Helnore attributed the company's struggles to inflation, tariffs, shipping difficulties, industry changes and more than $1 million in unpaid insurance claims.
Save A Lot Has Lost Hundreds of Stores
Best Bargains is not the only discount grocery retailer facing difficulties. Save A Lot closed its Watertown, New York, location on Oct. 10, which impacted eight employees. The store has operated since 2015.
The closure comes during a much larger contraction at the discount grocery chain. According to Grocery Dive, Save A Lot operated approximately 1,000 stores in 2020, but its network shrunk to around 650 locations by August of 2026.
(Source: grocerydive.com)
That represents a reduction of roughly 350 locations over six years.
Despite the closures, Save A Lot is still operating hundreds of independently owned and licensed stores across the country.
Grocery Outlet Closes 40 Stores as Restructuring Continues
Meanwhile, Grocery Outlet has also been reducing its store footprint as part of a restructuring strategy. The discount supermarket chain closed 40 locations during the first half of fiscal 2026, including 36 stores targeted under its business optimization plan.
Grocery Outlet also opened 17 stores during the same period, and ended its second quarter with 547 locations across 16 states.
Why Are Discount Grocery Stores Closing?
The closures shed some light on the growing pressure on discount retailers as competition intensifies and operating expenses stay elevated.
Large competitors like Walmart, Aldi and Costco are competing aggressively for budget-conscious shoppers, which makes it quite difficult for struggling chains to maintain profitability.
For shoppers, this raises concerns about access to affordable groceries, particularly in communities with limited alternatives.
