Grocery Outlet
| Company type | Public |
|---|---|
| Industry | Retail (Grocery) |
| Founded | June 11, 1946 in San Francisco, California, U.S. |
| Founder | James Read |
| Headquarters | Emeryville, California , United States |
Area served | California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, Delaware |
Key people | Jason Potter (CEO) |
| Products | Discounted groceries including bakery items, dairy products, deli meats, frozen foods, general groceries, meat, fresh produce, snacks, beer, wine |
| Owner | Read family (55% via Read Enterprises, Inc.) |
Number of employees | 949 (2024) |
| Website | www |
Grocery Outlet Holding Corp. is a U.S.-based discount closeout retailer that operates solely through supermarket outlets, offering a variety of discounted, surplus, and clearance items sourced from both well-known brands and private-label producers. Its market presence spans California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, and Delaware.
The majority of Grocery Outlet locations are independently managed by local married couples, providing adaptability in merchandise selection to suit regional preferences. Established in 1946 by James Read, the company’s headquarters are located in Emeryville, California. It is publicly traded on NASDAQ under the ticker GO. As of May 2024, Grocery Outlet runs 480 stores with about 949 employees and reported $3.97 billion in revenue for the year 2024.
Ownership remains predominantly within the Read family, holding a 55% stake through Read Enterprises, Inc. The executive leadership includes CEO Jason Potter. The company’s operational model emphasizes delivering value by selling discounted grocery categories such as bakery items, dairy products, deli meats, frozen foods, general groceries, meat, fresh produce, snacks, beer, and wine. Its distinctive franchise-like store management approach enables it to capture significant share within the discount grocery retail sector.
History
The origin of the company dates back to June 11, 1946, when James Read founded it in San Francisco, California. Initially named Cannery Sales, Read purchased government surplus food and sold it in empty retail spaces throughout San Francisco. In 1970, Cannery Sales acquired Globe of California and transformed into Canned Foods Warehouse with a strategic shift toward clearance and discounted merchandise. The company secured its first supplier agreement with Del Monte Foods in 1971 and subsequently established partnerships with ConAgra, Quaker Oats Company, and Revlon. The first independently operated store launched in Redmond, Oregon, in 1973.
Following James Read’s passing in 1982, his sons Steven and Peter took over leadership. The business was renamed Grocery Outlet in 1987 and expanded to its 100th store by 1995. In 2001, it acquired inventory from bankrupt online grocers Webvan and Wine.com. The corporate name was updated to Grocery Outlet, Inc. in 2002.
In 2003, Grocery Outlet ventured into Texas and Louisiana by purchasing 17 Yes!Less stores from Fleming Cos., but these locations were shuttered by 2004. Leadership changes occurred in 2006 when MacGregor Read and Eric Lindberg were promoted as co-CEOs; MacGregor is Steven Read’s son while Lindberg is Peter Read’s son-in-law. This marked the third generation of the Read family at the helm.
A legal challenge arose in 2007 when Grocery Outlet lost a dispute over the Lucky brand name to Albertsons. In response, "Bargain Market" branding was introduced in 2009. The company expanded further by acquiring Amelia's Grocery Outlet based in Pennsylvania in 2011.
Private equity firm Berkshire Partners made an investment in Grocery Outlet in 2009. Later in 2014, Hellman & Friedman LLC collaborated with senior management to purchase the company from Berkshire Partners.
Eric Lindberg was named CEO in December 2018 while MacGregor Read transitioned to Vice Chairman. On June 20, 2019, Grocery Outlet completed its initial public offering on the Nasdaq Global Select Market under the symbol "GO."
In January 2023, RJ Sheedy succeeded as CEO after serving as president.
Products
Grocery Outlet's merchandise primarily includes surplus and clearance items from both well-known brands and private labels. Due to the dynamic nature of closeout deals and seasonal stock, the product assortment varies regularly. In addition to these items, stores stock essential goods such as fresh meats, dairy products, and bakery items. All inventory is procured straight from producers, allowing for attractive price points. A notable feature is the NOSH category (natural, organic, specialty, and healthy), which appeals to cost-conscious shoppers looking for ethical choices, frequently including vegan or plant-based selections.