Grocery Outlet

{{Distinguish|text=United Grocery Outlet, which was acquired by Grocery Outlet in 2024}}

{{Infobox company

| name = Grocery Outlet Holding Corp.

| image = Grocery Outlet Manteca, California.jpg

| logo = Grocery Outlet logo.svg

| former_name = Cannery Sales (1946–1970)
Canned Foods (1970–1987)

| trade_name = Grocery Outlet Bargain Market

| type = Public

| traded_as = {{ubl|{{NASDAQ|GO}}|S&P 600 component}}

| founded = {{Start date and age|June 11, 1946}}, in San Francisco, California, U.S.

| founder = James Read

| hq_location = Emeryville, California, U.S.

| locations = 480 (May 2024)

| revenue = {{US$|3.970 billion|link=yes}} (2024)

| owner = Read family (55% via Read Enterprises, Inc.)

| parent = Berkshire Partners (2009–2014)
Hellman & Friedman LLC (2014–2019)

| subsid = United Grocery Outlet

| key_people = Jason Potter (CEO){{cite web|url=https://progressivegrocer.com/grocery-outlet-names-new-ceo-0 |title=Grocery Outlet Names New CEO }}

| industry = Discount retail / Grocery

| services = Discount retail
Supermarket

| products = Bakery, dairy, deli meats, frozen foods, general grocery, meat, produce, snacks, beer & wine

| num_employees = 949 (2024)

| website = {{URL|groceryoutlet.com}}

}}

Grocery Outlet Holding Corp. is an American discount closeout retailer consisting exclusively of supermarket locations that offer discounted, overstocked, and closeout products from name-brand and private-label suppliers.{{cite web|url=http://www.utsandiego.com/news/2012/Jul/11/sneak-peek-grocery-outlets-new-san-diego-store/ |title=Grocery Outlet opens new San Diego store |access-date=September 24, 2013 |date=July 11, 2012 |author=Tanya Mannes |publisher=UT San Diego |url-status=dead |archive-url=https://web.archive.org/web/20150402131520/http://www.utsandiego.com/news/2012/Jul/11/sneak-peek-grocery-outlets-new-san-diego-store/ |archive-date=April 2, 2015 }}{{cite news|title=Grocery Outlet cashing in on new frugality with expansion|newspaper=San Francisco Chronicle|date=June 20, 2010|author=Carolyn Said}}{{cite news|url=http://www.bizjournals.com/portland/stories/2003/06/02/story2.html|title=Grocery Outlet hits spot with budget shoppers|date=June 1, 2003|access-date=September 24, 2013|author=Robert Goldfield|newspaper=Portland Business Journal}}{{cite web|url=http://www.sierrastar.com/2013/04/24/62332/sierra-lanes-to-be-converted-to.html |title=Sierra Lanes to be converted to Grocery Outlet |author=Brian Wilkinson |date=April 24, 2013 |access-date=September 24, 2013 |publisher=Sierra Star |archive-url=https://web.archive.org/web/20130927143115/http://www.sierrastar.com/2013/04/24/62332/sierra-lanes-to-be-converted-to.html |archive-date=September 27, 2013 }}{{cite web|url=http://www.appeal-democrat.com/new-owners-grow-with-grocery-outlet/article_93116ba4-c2d7-5c05-8833-f9c561939e35.html|title=New owners grow with Grocery Outlet|author=John Hollis|publisher=Appeal Democrat|date=Nov 1, 2013|access-date=April 29, 2015}} The company has stores in California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, and Delaware.{{cite web|url=http://www.thebusinessjournal.com/news/retail/1416-grocery-outlet-building-new-fresno-store|title=Grocery Outlet building new Fresno store|author=Clay Moffitt|date=April 6, 2012|access-date=September 24, 2013|publisher=The Business Journal Now|archive-url=https://web.archive.org/web/20130928164722/http://www.thebusinessjournal.com/news/retail/1416-grocery-outlet-building-new-fresno-store|archive-date=2013-09-28|url-status=dead}}{{cite news|url=http://www.bizjournals.com/boston/stories/2009/10/12/daily17.html|title=Berkshire invests in W. Coast grocery chain|access-date=September 24, 2013|date=October 13, 2009|newspaper=Boston Business Journal|author=Tim McLaughlin}}

The vast majority of Grocery Outlet's stores are independently operated by local married couples.{{cite news|url=http://www.sfgate.com/business/article/Grocery-Outlet-eyes-expansion-in-lean-times-3184867.php#page-2|title=Grocery Outlet eyes expansion in lean times|author=Carolyn Said|access-date=September 24, 2013|date=June 20, 2010|newspaper=SFGate}}{{Cite web |date=2016-04-12 |title=Husband, wife emphasize NOSH at SoCal Grocery Outlet |url=https://www.supermarketnews.com/limited-assortment/husband-wife-emphasize-nosh-socal-grocery-outlet |access-date=2024-06-24 |website=Supermarket News |language=en}} Each store has flexibility in its product offerings to serve local tastes and demand.{{cite web|url=http://www.eastbaytimes.com/2013/05/21/new-grocery-outlet-set-to-open-doors-in-richmond-where-grocers-have-been-scarce/|title=New Grocery Outlet set to open doors in Richmond, where grocers have been scarce|publisher=Contra Costa Times|author=Robert Rogers|access-date=September 24, 2013|date=May 23, 2013}} The Read family founded the company in 1946. The formal name is Grocery Outlet Bargain Market.{{cite web|url=https://www.businesswire.com/news/home/20181226005074/en/Grocery-Outlet-Bargain-Market-Announces-MacGregor-Read|title=Grocery Outlet Bargain Marketing Announces MacGregor Read as Vice Chair, Eric Lindberg as CEO|access-date=February 5, 2019|date=December 26, 2018|publisher=BusinessWire}}

History

File:Grocery Outlet 185th - Hillsboro, Oregon.JPG, operated by Ted Walsh]]

James Read founded the company on June 11, 1946, in San Francisco, California. He bought government surplus food products and sold them in previously vacant stores throughout San Francisco.{{cite web|url=http://www.eastbaytimes.com/2010/02/05/berkeley-based-grocery-outlet-expands-as-shoppers-turn-frugal/|title=Berkeley-based Grocery Outlet expands as shoppers turn frugal|publisher=Contra Costa Times|author=Eve Mitchell|access-date=September 23, 2013|date=February 5, 2010}} He named his new company Cannery Sales. In 1970, Cannery Sales acquired Globe of California and renamed it Canned Foods Warehouse. Canned Foods Warehouse changed to selling closeout, factory second, and discounted products. In 1971 Canned Foods Warehouse signed its first agreement with a supplier, Del Monte Foods.{{cite news|url=http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20030920/BIZ/309209979&cid=sitesearch|title=Shopping adventures|author=Greg Stiles|newspaper=Mail Tribune|date=September 3, 2003|access-date=September 23, 2013}} It later signed agreements with companies such as ConAgra, the Quaker Oats Company, and Revlon. Canned Foods Warehouse opened its first independent store in Redmond, Oregon, in 1973.

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

In 2001, Grocery Outlet acquired all remaining liquidated inventories of Webvan following the online grocery delivery service's bankruptcy.{{cite news|title=Grocery Outlet Buys Inventory From Webvan|date=August 22, 2001|publisher=Oakland Post}} During the same year, Grocery Outlet acquired online retailer Wine.com's remaining inventory following that retailer's bankruptcy.{{cite web|url=http://www.bizjournals.com/sanfrancisco/stories/2001/12/03/daily8.html|title=Grocery Outlet buys Wine.com's inventory for $4M|date=December 3, 2001|access-date=September 23, 2013|publisher=San Francisco Business Journal|author=David Goll}} In 2002, the company changed its corporate name to Grocery Outlet, Inc.

Grocery Outlet purchased 16 Yes!Less grocery stores in Texas and another in Shreveport, Louisiana, from Dallas, Texas-based Fleming Cos. in January 2003.{{cite web|url=http://supermarketnews.com/archive/grocery-outlet-extends-reach-texas-yesless-buy|title=Grocery Outlet Extends Reach To Texas With Yes!Less Buy All|access-date=September 23, 2013|publisher=Supermarket News|author=Mark Hamstra|date=June 30, 2003}} All 17 stores were closed by May 2004.{{cite news|url=http://www.bizjournals.com/austin/stories/2004/03/01/daily37.html|title=Grocery Outlet to close Texas, La. stores|newspaper=Austin Business Journal|date=March 4, 2004|access-date=September 23, 2013}}

The company promoted MacGregor Read and Eric Lindberg to co-CEO in 2006.{{cite web|url=http://www.progressivegrocer.com/top-stories/headlines/hbc/id9589/grocery-outlet-names-new-co-ceos-preps-for-aggressive-growth/ |title=Grocery Outlet Names New Co-CEOs; Preps for Aggressive Growth |access-date=September 23, 2013 |publisher=Progressive Grocer |date=March 8, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20130927084737/http://www.progressivegrocer.com/top-stories/headlines/hbc/id9589/grocery-outlet-names-new-co-ceos-preps-for-aggressive-growth/ |archive-date=September 27, 2013 }} Prior to their appointment, Read was vice president of real estate and Lindberg vice president of purchasing for the company. They took over for Steven Read, who became executive chairman of Grocery Outlet. MacGregor Read is the son of Steven Read and Lindberg the son-in-law of Grocery Outlet Chairman Peter Read. MacGregor Read is the third generation of the Read family to serve as CEO of Grocery Outlet.

In 2007, the United States Court of Appeals for the Ninth Circuit awarded Albertsons an injunction against Grocery Outlet over its use of the Lucky brand name in a Rocklin, California, store.{{cite news|url=http://www.bizjournals.com/eastbay/stories/2007/09/10/daily27.html|title=Report: Albertsons gets Lucky in appeals court decision|access-date=September 23, 2013|date=September 11, 2007|newspaper=San Francisco Business Times}} In 2009, the company added "Bargain Market" to its store branding.

In 2011, Grocery Outlet acquired the Pennsylvania-based chain Amelia's Grocery Outlet.{{cite web|url=http://www.retailwire.com/discussion/fd-buyer-grocery-outlet-grows/|title=RetailWire Discussion: FD Buyer: Grocery Outlet Grows|work=retailwire.com|date=2 July 2012 }}

In 2009, Berkshire Partners became an investor in Grocery Outlet.{{Cite web| title = Berkshire Partners to Invest in Grocery Outlet| work = Progressive Grocer| date = 13 October 2009| accessdate = 2021-08-04| url = https://progressivegrocer.com/berkshire-partners-invest-grocery-outlet}} In 2014, private equity fund Hellman & Friedman LLC agreed to partner with senior management and acquire Grocery Outlet from principal owner Berkshire Partners LLC.{{cite web|url=https://groceryoutlet.com/news/grocery-outlet-announces-partnership-hellman-friedman |title=Grocery Outlet Announces Partnership with Hellman & Friedman|publisher=Grocery Outlet Inc|date=September 16, 2014|access-date=February 27, 2015}}

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

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".{{cite press release|url=https://www.globenewswire.com/news-release/2019/06/24/1873313/0/en/Grocery-Outlet-Holding-Corp-Announces-Closing-of-its-Initial-Public-Offering.html |title=Grocery Outlet Holding Corp. Announces Closing of its Initial Public Offering |website=globenewswire.com |date=2019-06-24 |access-date=2022-11-17}}

In January 2023, RJ Sheedy, who already held the title of president, also assumed the role of CEO.{{Cite news |last=Redman |first=Russell |date=November 9, 2022 |title=RJ Sheedy to become Grocery Outlet's next CEO |url=https://www.supermarketnews.com/retail-financial/rj-sheedy-become-grocery-outlet-s-next-ceo |access-date=June 19, 2024 |work=Supermarket News}}

Products

Inventory comes primarily from overstocks and closeouts of name-brand groceries, as well as private-label groceries. Grocery Outlet buys mostly closeout or seasonal merchandise, so particular brand names change often. The company's stores also carry food staples such as fresh meat, dairy and bread. All products sold by Grocery Outlet are purchased directly from manufacturers, never from other retail stores. 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.{{cite web|title=Grocery Outlet Ethical Bargains|url=https://ethicalbargains.org/|access-date=2021-06-23}}