Grocery Outlet

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Grocery Outlet Holding Corp.
Grocery Outlet Bargain Market
FormerlyCannery Sales (1946–1970)
Canned Foods (1970–1987)
Company type Public
Industry Discount retail / Grocery
FoundedJune 11, 1946;77 years ago (June 11, 1946)
San Francisco, California, U.S.
FounderJames Read
Headquarters Emeryville, California, U.S.
Number of locations
457 (Aug 2023)
Key people
Eric Lindberg, (CEO)
MacGregor Read, (Vice Chairman) [1]
ProductsBakery, dairy, deli meats, frozen foods, general grocery, meat, produce, snacks, beer & wine
Services Discount retail
Supermarket
Revenue US$ 3.135 billion (2021)
OwnerRead family (55% via Read Enterprises, Inc.)
Number of employees
946 (2020)
Parent Independent (1946–2009)
Berkshire Partners (2009–2014)
Hellman & Friedman LLC (2014–2019)
Website groceryoutlet.com

Grocery Outlet Holding Corp. is an American discount closeout retailer consisting exclusively of supermarket locations that offer deeply discounted, overstocked, and closeout products from name-brand and private-label suppliers. [2] [3] [4] [5] [6] The company has stores in California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania and New Jersey. [2] [7] [8]

Contents

The majority of Grocery Outlet's stores are independently operated by locally based, married couples. [4] [5] [6] [9] Each store has flexibility in its product offerings to serve local tastes and demand. [9] [10] The Read family founded the company in 1946. The formal name is Grocery Outlet Bargain Market. [1]

History

A location in Tanasbourne, Oregon, operated by Ted Walsh Grocery Outlet 185th - Hillsboro, Oregon.JPG
A location in Tanasbourne, Oregon, operated by Ted Walsh

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

In 2001, Grocery Outlet acquired all remaining liquidated inventories of Webvan following the online grocery delivery service's bankruptcy. [13] During the same year, Grocery Outlet acquired online retailer Wine.com's remaining inventory following that retailer's bankruptcy. [14] In 2002, the company changed its corporate name to Grocery Outlet, Inc. [11]

Grocery Outlet purchased 16 Yes!Less grocery stores in Texas and another in Shreveport, Louisiana, from Dallas, Texas-based Fleming Cos. in January 2003. [15] All 17 stores were closed by May 2004. [16]

The company promoted MacGregor Read and Eric Lindberg to co-CEO in 2006. [11] [17] Prior to their appointment, Read was vice president of real estate and Lindberg vice president of purchasing for the company. [17] They took over for Steven Read, who became executive chairman of Grocery Outlet. [17] MacGregor Read is the son of Steven Read and Lindberg the son-in-law of Grocery Outlet Chairman Peter Read. [17] MacGregor Read is the third generation of the Read family to serve as CEO of Grocery Outlet. [17]

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. [18] In 2009, the company added "Bargain Market" to its store branding. In 2011, Grocery Outlet acquired the Pennsylvania-based chain Amelia's Grocery Outlet. [19]

In 2009, Berkshire Partners became an investor in Grocery Outlet. [20] In 2014, private equity fund Hellman & Friedman LLC agreed to partner with senior management and acquire Grocery Outlet from principal owner Berkshire Partners LLC. [21]

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". [22]

Products

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. [23]

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References

  1. 1 2 3 "Grocery Outlet Bargain Marketin Announces MacGregor Read as Vice Chair, Eric Lindberg as CEO". BusinessWire. December 26, 2018. Retrieved February 5, 2019.
  2. 1 2 3 4 5 6 Tanya Mannes (July 11, 2012). "Grocery Outlet opens new San Diego store". UT San Diego. Archived from the original on April 2, 2015. Retrieved September 24, 2013.
  3. 1 2 3 4 Carolyn Said (June 20, 2010). "Grocery Outlet cashing in on new frugality with expansion". San Francisco Chronicle.
  4. 1 2 3 4 5 6 Robert Goldfield (June 1, 2003). "Grocery Outlet hits spot with budget shoppers". Portland Business Journal. Retrieved September 24, 2013.
  5. 1 2 3 Brian Wilkinson (April 24, 2013). "Sierra Lanes to be converted to Grocery Outlet". Sierra Star. Archived from the original on September 27, 2013. Retrieved September 24, 2013.
  6. 1 2 3 4 5 6 7 8 9 John Hollis (Nov 1, 2013). "New owners grow with Grocery Outlet". Appeal Democrat. Retrieved April 29, 2015.
  7. 1 2 Clay Moffitt (April 6, 2012). "Grocery Outlet building new Fresno store". The Business Journal Now. Archived from the original on 2013-09-28. Retrieved September 24, 2013.
  8. ↑ Tim McLaughlin (October 13, 2009). "Berkshire invests in W. Coast grocery chain". Boston Business Journal. Retrieved September 24, 2013.
  9. 1 2 Carolyn Said (June 20, 2010). "Grocery Outlet eyes expansion in lean times". SFGate. Retrieved September 24, 2013.
  10. ↑ Robert Rogers (May 23, 2013). "New Grocery Outlet set to open doors in Richmond, where grocers have been scarce". Contra Costa Times. Retrieved September 24, 2013.
  11. 1 2 3 4 5 6 7 Eve Mitchell (February 5, 2010). "Berkeley-based Grocery Outlet expands as shoppers turn frugal". Contra Costa Times. Retrieved September 23, 2013.
  12. 1 2 Greg Stiles (September 3, 2003). "Shopping adventures". Mail Tribune. Retrieved September 23, 2013.
  13. ↑ "Grocery Outlet Buys Inventory From Webvan". Oakland Post. August 22, 2001.{{cite journal}}: Cite journal requires |journal= (help)
  14. ↑ David Goll (December 3, 2001). "Grocery Outlet buys Wine.com's inventory for $4M". San Francisco Business Journal. Retrieved September 23, 2013.
  15. ↑ Mark Hamstra (June 30, 2003). "Grocery Outlet Extends Reach To Texas With Yes!Less Buy All". Supermarket News. Retrieved September 23, 2013.
  16. ↑ "Grocery Outlet to close Texas, La. stores". Austin Business Journal. March 4, 2004. Retrieved September 23, 2013.
  17. 1 2 3 4 5 "Grocery Outlet Names New Co-CEOs; Preps for Aggressive Growth". Progressive Grocer. March 8, 2006. Archived from the original on September 27, 2013. Retrieved September 23, 2013.
  18. ↑ "Report: Albertsons gets Lucky in appeals court decision". San Francisco Business Times. September 11, 2007. Retrieved September 23, 2013.
  19. ↑ "RetailWire Discussion: FD Buyer: Grocery Outlet Grows". retailwire.com.
  20. ↑ "Berkshire Partners to Invest in Grocery Outlet". Progressive Grocer. Retrieved 2021-08-04.
  21. ↑ Company (September 16, 2014). "Grocery Outlet Announces Partnership with Hellman & Friedman". Grocery Outlet Inc. Retrieved February 27, 2015.
  22. ↑ "Grocery Outlet Holding Corp. Announces Closing of its Initial Public Offering". globenewswire.com. 2019-06-24. Retrieved 2022-11-17.
  23. ↑ "Grocery Outlet Ethical Bargains" . Retrieved 2021-06-23.
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