Extreme-value retailer Grocery Outlet Holding Corp. is concluding 2024 with an impressive total of 533 stores across 16 states. Historically rooted in the West Coast, the company is ambitiously pursuing its eastward expansion strategy, which now includes 34 stores in Pennsylvania, 12 in Maryland, seven in New Jersey, three in Ohio, and its inaugural location in Delaware.
Layla Kasha, Grocery Outlet’s Chief New Store Growth Officer, expressed pride in the company’s growth trajectory. “As we round the corner on 2025, we will continue to focus on our core markets as well as clustered growth in Cleveland, Las Vegas, and Baltimore. We see a lot of potential in the years ahead serving customers looking for a treasure-hunt shopping experience to stretch their dollar on our wide selection of fresh produce, meat, deli, dairy, packaged groceries, frozen, health, and beauty care products,” Kasha stated.
The company’s expansion this year was notably bolstered by its acquisition of United Grocery Outlet (UGO), a competitor in the extreme-value grocery space operating predominantly in the southeastern United States. This acquisition, which includes 40 stores and a distribution center, opens new markets for Grocery Outlet in Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia.
Financially, Grocery Outlet is on solid ground. The retailer reported a 10.4% increase in net sales, reaching $1.11 billion during the third-quarter of its fiscal year, which ended on September 28. This growth can be attributed to both new store openings and a 1.2% increase in comparable-store sales. Over a two-year horizon, this translates to a substantial 7.6% comp growth.
A pivotal part of Grocery Outlet’s strategy is its new private label portfolio, launched earlier this year. The GO Brands line encompasses three different segments: SimplyGO, Go Home & Haven, and GO Paw & Pamper. These lines aim to offer customers additional value on staples, household essentials, and pet products. Such product diversification enhances customer loyalty by meeting various shopping needs.
Additionally, Grocery Outlet introduced the GO Mobile App, which allows users to stay informed about exclusive offers and deals while enabling a personalized shopping experience. The app exemplifies how digital solutions are enhancing customer engagement and convenience in the retail sector.
However, 2024 also brought changes to Grocery Outlet’s executives. Following the departure of CEO R.J. Sheedy, Eric Lindberg, previously the CEO, was appointed as interim president and CEO in late October. Lindberg’s leadership is expected to guide Grocery Outlet through its growth phases into the new year, along with the new Executive Vice President and Chief Financial Officer, Christopher Miller, set to start on January 6. Miller transitions from Shamrock Foods Co., expanding the company’s management expertise.
Grocery Outlet, based in Emeryville, California, operates through a network of independently run stores across various states including California, Washington, Oregon, and beyond, employing approximately 1,000 individuals. The company is a notable player in the grocery retail landscape, claiming the 66th position on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
As Grocery Outlet looks ahead, it remains committed to enhancing the shopping experience for its customers while expanding its footprint strategically throughout the United States. The combination of physical store growth, innovative product offerings, and enhanced digital engagement strategies positions Grocery Outlet favorably for ongoing success in the competitive grocery landscape.
With its robust expansion plans and a diverse product portfolio, Grocery Outlet is set to capture even more market share in the coming years.