Grocery Outlet

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Grocery Outlet
Private
Industry Retail (Grocery)
Founded 1946
Founder Jim Read
Headquarters Emeryville, California
Number of locations
185[1]
Key people
Eric Lindberg & MacGregor Read, Co-CEOs[2]
Products Bakery, dairy, deli, frozen foods, general grocery, meat, produce, snacks, beer & wine
Website http://groceryoutlet.com/

Grocery Outlet Inc., supermarket chain previously known as Canned Foods Grocery Outlet, is owned by private equity firm and operated by the founding Read family. It focuses on discount overstocked and closeout products from name brand and private label suppliers.[3][4][5][6][7] Jim Read founded the company in 1946 in San Francisco, California.[4][5][7] Grocery Outlet operates in California, Oregon, Washington, Idaho, Nevada, Pennsylvania [3][8] Its co-CEOs are Eric Lindberg and MacGregor Read.[2]

The majority of Grocery Outlet’s stores are independently operated by locally based married couples.[5][6][7][9] Each store also has flexibility in its product offerings to better serve local tastes and demand.[9][10]

History[edit]

A location in Hillsboro, Oregon

In 1946, Jim Read bought government surplus food products and sold them in vacant stores throughout San Francisco.[4][7][11] He named his new company Cannery Sales.[7][11]

In 1970, Cannery Sales acquired Globe of California and renamed it Canned Foods.[7][11] Canned Foods changed to selling closeout, factory second, and discounted products.[7][11]

In 1971, Canned Foods signed its first supplier agreement, an agreement with 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.[5]

Following founder Jim Read’s death in 1982, his sons Steven and Peter Read took over company management.[5] In 1987, the company was renamed Grocery Outlet.[7][8] 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] 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 Albertson’s LLC an injunction against Grocery Outlet over Grocery Outlet’s use of the Lucky brand name in a Rocklin, California store.[18]

In 2011 Grocery Outlet acquired a Lancaster County based chain of stores named Amelia's Grocery Outlet.[19]

In 2014, Hellman & Friedman LLC a private equity fund agreed to partner with senior management and acquire the Grocery Outlet from principal owner Berkshire Partners LLC. [20]

Products[edit]

Grocery Outlet’s inventory comes primarily from overstocks and closeouts of name brand groceries, as well as private label groceries.[3][4][5][6][7] Grocery Outlets buy mostly closeout or seasonal merchandise, so particular brand names change often.[3] The company’s stores also carry food staples such as fresh meat, dairy and bread.[3] All products sold by Grocery Outlet are purchased directly from manufacturers, not other retail stores.[3]

Grocery Outlet sells many products past their expiration date, per their agreements with specific manufacturers. For example many cheese products are held thirty days past their expiration date.[21]

References[edit]

  1. ^ Jon Stinnett (June 25, 2013). "Grocery Outlet coming to town". Cottage Grove Sentinel. Retrieved September 24, 2013. 
  2. ^ a b Tim McLaughlin (October 13, 2009). "Berkshire invests in W. Coast grocery chain". Boston Business Journal. Retrieved September 24, 2013. 
  3. ^ a b c d e f Tanya Mannes (July 11, 2012). "Grocery Outlet opens new San Diego store". UT San Diego. Retrieved September 24, 2013. 
  4. ^ a b c d Carolyn Said (June 20, 2010). "Grocery Outlet cashing in on new frugality with expansion". San Francisco Chronicle. 
  5. ^ a b c d e f Robert Goldfield (June 1, 2003). "Grocery Outlet hits spot with budget shoppers". Portland Business Journal. Retrieved September 24, 2013. 
  6. ^ a b c Brian Wilkinson (April 24, 2013). "Sierra Lanes to be converted to Grocery Outlet". Sierra Star. Retrieved September 24, 2013. 
  7. ^ a b c d e f g h i John Hollis (Nov 1, 2013). "New owners grow with Grocery Outlet". Appeal Democrat. Retrieved April 29, 2015. 
  8. ^ a b Clay Moffitt (April 6, 2012). "Grocery Outlet building new Fresno store". The Business Journal Now. Retrieved September 24, 2013. 
  9. ^ a b 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. ^ a b c d e f g Eve Mitchell (February 5, 2010). "Berkeley-based Grocery Outlet expands as shoppers turn frugal". Contra Costa Times. Retrieved September 23, 2013. 
  12. ^ a b 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. 
  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. ^ a b c d e "Grocery Outlet Names New Co-CEOs; Preps for Aggressive Growth". Progressive Grocer. March 8, 2006. 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. ^ http://www.retailwire.com/discussion/16115/fd-buyer-grocery-outlet-grows
  20. ^ Company (September 16, 2014). "Grocery Outlet Announces Partnership with Hellman & Friedman". Grocery Outlet Inc. Retrieved February 27, 2015. 
  21. ^ http://www.groceryoutlet.com/Default/Outlet/FoodSafety.aspx

External links[edit]