Grocery Outlet Holding Corp. is an American
discount closeout retailer consisting exclusively of
supermarket
A supermarket is a self-service shop offering a wide variety of food, beverages and household products, organized into sections. This kind of store is larger and has a wider selection than earlier grocery stores, but is smaller and more limit ...
locations that offer deeply discounted, overstocked, and closeout products from
name brand and
private label suppliers.
The company has stores in California, Oregon, Washington, Idaho, Nevada, Pennsylvania and New Jersey.
The majority of Grocery Outlet's stores are independently operated by locally based, married couples.
Each store has flexibility in its product offerings to serve local tastes and demand.
The Read family founded the company in 1946. The formal name is Grocery Outlet Bargain Market.
History
James Read founded the company on June 11, 1946, in
San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17t ...
, California.
He bought government surplus food products and sold them in previously vacant stores throughout San Francisco.
He named his new company Cannery Sales.
In 1970, Cannery Sales acquired Globe of California and renamed it Canned Foods.
Canned Foods changed to selling closeout, factory second, and discounted products.
In 1971 Canned Foods signed its first agreement with a supplier,
Del Monte Foods
Del Monte Foods, Inc (trading as Del Monte Foods) is an American food production and distribution company headquartered in Walnut Creek, California. Del Monte Foods is one of the country's largest producers, distributors and marketer of b ...
.
It later signed agreements with companies such as
ConAgra
Conagra Brands, Inc. (formerly ConAgra Foods) is an American consumer packaged goods holding company headquartered in Chicago, Illinois. Conagra makes and sells products under various brand names that are available in supermarkets, restauran ...
, the
Quaker Oats Company
The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001.
History Precursor miller companies
In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...
, and
Revlon
Revlon, Inc. is an American multinational company dealing in cosmetics, skin care, fragrance, and personal care. The headquarters of Revlon was established in New York City on March 1, 1932, where it still remains. Revlon was founded by brother ...
.
Canned Foods 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.
During the same year, Grocery Outlet acquired online retailer
Wine.com's remaining inventory following that retailer's bankruptcy.
In 2002, the company changed its corporate name to Grocery Outlet, Inc.
Grocery Outlet purchased 16 Yes!Less grocery stores in
Texas
Texas (, ; Spanish: ''Texas'', ''Tejas'') is a state in the South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2020, it is the second-largest U.S. state by ...
and another in
Shreveport, Louisiana
Shreveport ( ) is a city in the U.S. state of Louisiana. It is the third most populous city in Louisiana after New Orleans and Baton Rouge, respectively. The Shreveport–Bossier City metropolitan area, with a population of 393,406 in 2020, is ...
, from
Dallas
Dallas () is the third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the fourth-largest metropolitan area in the United States at 7.5 million people. It is the largest city in and seat of Dallas County ...
, Texas-based Fleming Cos. in January 2003.
All 17 stores were closed by May 2004.
The company promoted MacGregor Read and Eric Lindberg to co-CEO in 2006.
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
The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts:
* District ...
awarded
Albertsons
Albertsons Companies, Inc. is an American grocery company founded and headquartered in Boise, Idaho.
With 2,253 stores as of the third quarter of fiscal year 2020 and 270,000 employees as of fiscal year 2019, the company is the second-larg ...
an injunction against Grocery Outlet over its use of the Lucky brand name in a
Rocklin,
California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
, store.
In 2009, the company added "Bargain Market" to its store branding.
In 2011, Grocery Outlet acquired the Pennsylvania-based chain Amelia's Grocery Outlet.
In 2009,
Berkshire Partners
Berkshire Partners is an American private equity firm based in Boston. It has invested in over 100 middle market companies since 1986 through nine investment funds with aggregate capital commitments of more than $16 billion. Berkshire has devel ...
became an investor in 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.
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, shares of Grocery Outlet's common stock began trading on Nasdaq Global Select Market on June 20, 2019, under the symbol “GO.”
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 the Grocery Outlet is labeled NOSH (natural, organic, specialty and healthy). Mainly because of this section, the Grocery Outlet has attracted followers who want to buy ethical items (often vegan and/or plant-based) on a budget.
References
External links
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{{authority control
1946 establishments in California
American companies established in 1946
Companies based in Emeryville, California
Food and drink in the San Francisco Bay Area
Companies listed on the Nasdaq
Retail companies established in 1946
Supermarkets based in California
Supermarkets of the United States
2019 initial public offerings
2014 mergers and acquisitions