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Grocery Outlet

From Wikipedia, the free encyclopedia
Not to be confused withUnited Grocery Outlet,which was acquired by Grocery Outlet in 2024.
Grocery Outlet Holding Corp.
Grocery Outlet Bargain Market
FormerlyCannery Sales (1946–1970)
Canned Foods (1970–1987)
Company typePublic
IndustryDiscount retail/Grocery
FoundedJune 11, 1946;78 years ago(June 11, 1946),inSan Francisco, California,U.S.
FounderJames Read
HeadquartersEmeryville, California,U.S.
Number of locations
480 (May 2024)
Key people
RJ Sheedy (CEO)[1]
ProductsBakery, dairy, deli meats, frozen foods, general grocery, meat, produce, snacks, beer & wine
ServicesDiscount retail
Supermarket
RevenueUS$3.135 billion(2021)
OwnerRead family (55% via Read Enterprises, Inc.)
Number of employees
9970 (December 2023)
ParentBerkshire Partners(2009–2014)
Hellman & Friedman LLC(2014–2019)
Websitegroceryoutlet.com

Grocery Outlet Holding Corp.is an Americandiscount closeout retailerconsisting exclusively ofsupermarketlocations that offer discounted, overstocked, and closeout products fromname-brandandprivate-labelsuppliers.[2][3][4][5][6]The company has stores in California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, and Delaware.[2][7][8]

The vast majority of Grocery Outlet's stores are independently operated by local married couples.[5][9][10]Each store has flexibility in its product offerings to serve local tastes and demand.[9][11]The Read family founded the company in 1946. The formal name is Grocery Outlet Bargain Market.[1]

History

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A location inTanasbourne, Oregon,operated by Ted Walsh

James Read founded the company on June 11, 1946, inSan Francisco,California.[3][4][6]He bought government surplus food products and sold them in previously vacant stores throughout San Francisco.[3][6][12]He named his new company Cannery Sales.[6][12]In 1970, Cannery Sales acquired Globe of California and renamed it Canned Foods.[6][12]Canned Foods changed to selling closeout, factory second, and discounted products.[6][12]In 1971 Canned Foods signed its first agreement with a supplier,Del Monte Foods.[13]It later signed agreements with companies such asConAgra,theQuaker Oats Company,andRevlon.[13]Canned Foods opened its first independent store inRedmond, Oregon,in 1973.[4]

Following founder James Read's death in 1982, his sons Steven and Peter took over company management.[4]In 1987, the company was renamed Grocery Outlet.[6][7]Grocery Outlet's 100th store opened in 1995.[12]

In 2001, Grocery Outlet acquired all remaining liquidated inventories ofWebvanfollowing the online grocery delivery service's bankruptcy.[14]During the same year, Grocery Outlet acquired online retailerWine.com's remaining inventory following that retailer's bankruptcy.[15]In 2002, the company changed its corporate name to Grocery Outlet, Inc.[12]

Grocery Outlet purchased 16 Yes!Less grocery stores inTexasand another inShreveport, Louisiana,fromDallas,Texas-based Fleming Cos. in January 2003.[16]All 17 stores were closed by May 2004.[17]

The company promoted MacGregor Read and Eric Lindberg to co-CEO in 2006.[12][18]Prior to their appointment, Read was vice president of real estate and Lindberg vice president of purchasing for the company.[18]They took over for Steven Read, who became executive chairman of Grocery Outlet.[18]MacGregor Read is the son of Steven Read and Lindberg the son-in-law of Grocery Outlet Chairman Peter Read.[18]MacGregor Read is the third generation of the Read family to serve as CEO of Grocery Outlet.[18]

In 2007, theUnited States Court of Appeals for the Ninth CircuitawardedAlbertsonsan injunction against Grocery Outlet over its use of the Lucky brand name in aRocklin, California,store.[19]In 2009, the company added "Bargain Market" to its store branding. In 2011, Grocery Outlet acquired the Pennsylvania-based chain Amelia's Grocery Outlet.[20]

In 2009,Berkshire Partnersbecame an investor in Grocery Outlet.[21]In 2014, private equity fundHellman & Friedman LLCagreed to partner with senior management and acquire Grocery Outlet from principal owner Berkshire Partners LLC.[22]

In December 2018, the Board of Directors appointed Eric Lindberg to Chief Executive Officer and MacGregor Read to Vice Chairman.[1]

In June 2019, Grocery Outlet went public and shares of Grocery Outlet's common stock began trading on Nasdaq Global Select Market on June 20, 2019, under the symbol "GO".[23]

In January 2023, RJ Sheedy, who already held the title of president, also assumed the role of CEO.[24]

Products

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Inventory comes primarily from overstocks and closeouts of name-brand groceries, as well as private-label groceries.[2][3][4][5][6]Grocery Outlet buys mostly closeout or seasonal merchandise, so particular brand names change often.[2]The company's stores also carry food staples such as fresh meat, dairy and bread.[2]All products sold by Grocery Outlet are purchased directly from manufacturers, never from other retail stores.[2]One of the most popular sections in Grocery Outlet is labeled NOSH (natural, organic, specialty and healthy). Mainly because of this section, Grocery Outlet has attracted followers who want to buy ethical items (often vegan and/or plant-based) on a budget.[25]

References

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  1. ^abc"Grocery Outlet Bargain Marketing Announces MacGregor Read as Vice Chair, Eric Lindberg as CEO".BusinessWire. December 26, 2018.RetrievedFebruary 5,2019.
  2. ^abcdefTanya Mannes (July 11, 2012)."Grocery Outlet opens new San Diego store".UT San Diego. Archived fromthe originalon April 2, 2015.RetrievedSeptember 24,2013.
  3. ^abcdCarolyn Said (June 20, 2010). "Grocery Outlet cashing in on new frugality with expansion".San Francisco Chronicle.
  4. ^abcdeRobert Goldfield (June 1, 2003)."Grocery Outlet hits spot with budget shoppers".Portland Business Journal.RetrievedSeptember 24,2013.
  5. ^abcBrian Wilkinson (April 24, 2013)."Sierra Lanes to be converted to Grocery Outlet".Sierra Star. Archived fromthe originalon September 27, 2013.RetrievedSeptember 24,2013.
  6. ^abcdefghJohn Hollis (Nov 1, 2013)."New owners grow with Grocery Outlet".Appeal Democrat.RetrievedApril 29,2015.
  7. ^abClay Moffitt (April 6, 2012)."Grocery Outlet building new Fresno store".The Business Journal Now. Archived fromthe originalon 2013-09-28.RetrievedSeptember 24,2013.
  8. ^Tim McLaughlin (October 13, 2009)."Berkshire invests in W. Coast grocery chain".Boston Business Journal.RetrievedSeptember 24,2013.
  9. ^abCarolyn Said (June 20, 2010)."Grocery Outlet eyes expansion in lean times".SFGate.RetrievedSeptember 24,2013.
  10. ^"Husband, wife emphasize NOSH at SoCal Grocery Outlet".Supermarket News.2016-04-12.Retrieved2024-06-24.
  11. ^Robert Rogers (May 23, 2013)."New Grocery Outlet set to open doors in Richmond, where grocers have been scarce".Contra Costa Times.RetrievedSeptember 24,2013.
  12. ^abcdefgEve Mitchell (February 5, 2010)."Berkeley-based Grocery Outlet expands as shoppers turn frugal".Contra Costa Times.RetrievedSeptember 23,2013.
  13. ^abGreg Stiles (September 3, 2003)."Shopping adventures".Mail Tribune.RetrievedSeptember 23,2013.
  14. ^"Grocery Outlet Buys Inventory From Webvan".Oakland Post.August 22, 2001.
  15. ^David Goll (December 3, 2001)."Grocery Outlet buys Wine.com's inventory for $4M".San Francisco Business Journal.RetrievedSeptember 23,2013.
  16. ^Mark Hamstra (June 30, 2003)."Grocery Outlet Extends Reach To Texas With Yes!Less Buy All".Supermarket News.RetrievedSeptember 23,2013.
  17. ^"Grocery Outlet to close Texas, La. stores".Austin Business Journal.March 4, 2004.RetrievedSeptember 23,2013.
  18. ^abcde"Grocery Outlet Names New Co-CEOs; Preps for Aggressive Growth".Progressive Grocer. March 8, 2006. Archived fromthe originalon September 27, 2013.RetrievedSeptember 23,2013.
  19. ^"Report: Albertsons gets Lucky in appeals court decision".San Francisco Business Times.September 11, 2007.RetrievedSeptember 23,2013.
  20. ^"RetailWire Discussion: FD Buyer: Grocery Outlet Grows".retailwire.com.
  21. ^"Berkshire Partners to Invest in Grocery Outlet".Progressive Grocer.Retrieved2021-08-04.
  22. ^"Grocery Outlet Announces Partnership with Hellman & Friedman".Grocery Outlet Inc. September 16, 2014.RetrievedFebruary 27,2015.
  23. ^"Grocery Outlet Holding Corp. Announces Closing of its Initial Public Offering".globenewswire.com.2019-06-24.Retrieved2022-11-17.
  24. ^Redman, Russell (November 9, 2022)."RJ Sheedy to become Grocery Outlet's next CEO".Supermarket News.RetrievedJune 19,2024.
  25. ^"Grocery Outlet Ethical Bargains".Retrieved2021-06-23.
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Wikimedia Commons has media related toGrocery Outlet.
  • Official website
  • Business data for Grocery Outlet Holding Corp.:
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