Berkeley-based Grocery Outlet already operates 188 locations mostly in Washington, Oregon and California. Sixteen of the 17 new properties are located in Texas and the remaining location is in Louisiana. It is the largest one-time expansion in the company's history.

Grocery Outlet VP John Wylie tells GlobeSt.com the leaseholds were acquired because they are about the same size as its existing locations, appeal to the same audience and will allow the re-marketer to take advantage of more closeout and overstock bargains in the Midwest and on the East Coast that previously would have been too expensive to distribute to its West Coast stores.

In Texas, Grocery Outlet stores will open in Arlington, Athens, Dallas, Denison, College Station, Fort Worth (two locations), Garland, Hurst, Killeen, Longview, Mesquite, Pantego, Sherman, Waco, and Wichita Falls. Two of the locations already have been reopened and Wylie says the company is now analyzing how and when to open the other 15. "We have restructured all leases with all landlords," says Wylie, who wouldn't disclose the terms of the leases but did say "they have the potential to be long-term leases."