diff --git a/app/assets/javascripts/groups/components/group_item.vue b/app/assets/javascripts/groups/components/group_item.vue
index 420f85cdbce..9c20c9d52dc 100644
--- a/app/assets/javascripts/groups/components/group_item.vue
+++ b/app/assets/javascripts/groups/components/group_item.vue
@@ -14,7 +14,7 @@ export default {
   },
   methods: {
     toggleSubGroups(e) {
-      if (e.target.tagName === 'A' || !this.hasSubgroups) {
+      if (e.target.tagName === 'A' || !this.group.hasSubgroups) {
         return false;
       }
 
@@ -39,14 +39,10 @@ export default {
       return {
         'group-row': true,
         'is-open': this.group.isOpen,
-        'has-subgroups': this.hasSubgroups,
+        'has-subgroups': this.group.hasSubgroups,
         'no-description': !this.group.description,
       };
     },
-    hasSubgroups() {
-      // TODO: Server should send a flag to indicate group will have subgroups
-      return true;
-    },
     fullPath() {
       let fullPath = '';
 
diff --git a/app/assets/javascripts/groups/stores/groups_store.js b/app/assets/javascripts/groups/stores/groups_store.js
index e3530703203..258bda7a2b0 100644
--- a/app/assets/javascripts/groups/stores/groups_store.js
+++ b/app/assets/javascripts/groups/stores/groups_store.js
@@ -117,6 +117,7 @@ export default class GroupsStore {
       fullName: rawGroup.full_name,
       fullPath: rawGroup.full_path,
       name: rawGroup.name,
+      hasSubgroups: rawGroup.has_subgroups,
       canEdit: rawGroup.can_edit,
       description: rawGroup.description,
       webUrl: rawGroup.web_url,