Grocery Outlet
 | |
| Formerly | Cannery Sales (1946–1970) Canned Foods (1970–1987) |
|---|---|
| Company type | Private |
| Industry | Retail / Grocery |
| Founded | June 11, 1946 San Francisco, California, U.S. |
| Founder | James Read |
| Headquarters | Emeryville, California, U.S. |
Number of locations | 265 |
Key people | Eric Lindberg & MacGregor Read, Co-CEOs[1] |
| Products | Bakery, dairy, deli, frozen foods, general grocery, meat, produce, snacks, beer & wine |
| Owner | Hellman & Friedman |
| Website | groceryoutlet |
Grocery Outlet is a supermarket company that offers discount, 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 and Pennsylvania.[2][7][1]
The majority of Grocery Outlet’s stores are independently operated by locally based, married couples.[4][5][dead link][6][8] Each store has flexibility in its product offerings to serve local tastes and demand.[8][9] The company is managed by the Read family, who founded it in 1946. The brand has a number of low-budget commercials that feature the full name, "Grocery Outlet Bargain Market", sung as a folksy country-esque jingle.[10]
History
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 of the 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 2014, private equity fund Hellman & Friedman LLC agreed to partner with senior management and acquire Grocery Outlet from principal owner Berkshire Partners LLC.[20]
Products
Inventory comes primarily from overstocks and closeouts of name brand groceries, as well as private label groceries.[2][3][4][5][dead link][6] Grocery Outlets buy 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, not other retail stores.[2]
According to the company its stores keep certain products on shelves beyond the "best if used by" dates: "Some items, including soft-ripened cheeses, non-dairy creamers, dough products, juices, and smoked salmon are pulled 7 days after their “Best If Used By” date, because they are still safe to eat. All other product (shelf-stable grocery) must be pulled no later than 30 days past the “Best If Used By” date." The company states that: "'Use-by' dates usually refer to best quality and are not safety dates."[21]
References
- ^ a b Tim McLaughlin (October 13, 2009). "Berkshire invests in W. Coast grocery chain". Boston Business Journal. Retrieved September 24, 2013.
- ^ a b c d e f 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.
{{cite web}}: Unknown parameter|deadurl=ignored (|url-status=suggested) (help) - ^ a b c d Carolyn Said (June 20, 2010). "Grocery Outlet cashing in on new frugality with expansion". San Francisco Chronicle.
{{cite journal}}: Cite journal requires|journal=(help) - ^ 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.
- ^ a b c 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.
- ^ 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.
- ^ a b 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.
{{cite web}}: Unknown parameter|dead-url=ignored (|url-status=suggested) (help) - ^ a b Carolyn Said (June 20, 2010). "Grocery Outlet eyes expansion in lean times". SFGate. Retrieved September 24, 2013.
- ^ 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.
- ^ Grocery Outlet Bargain Market!!, retrieved 2018-01-31
- ^ 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.
- ^ a b Greg Stiles (September 3, 2003). "Shopping adventures". Mail Tribune. Retrieved September 23, 2013.
- ^ "Grocery Outlet Buys Inventory From Webvan". Oakland Post. August 22, 2001.
{{cite journal}}: Cite journal requires|journal=(help) - ^ David Goll (December 3, 2001). "Grocery Outlet buys Wine.com's inventory for $4M". San Francisco Business Journal. Retrieved September 23, 2013.
- ^ Mark Hamstra (June 30, 2003). "Grocery Outlet Extends Reach To Texas With Yes!Less Buy All". Supermarket News. Retrieved September 23, 2013.
- ^ "Grocery Outlet to close Texas, La. stores". Austin Business Journal. March 4, 2004. Retrieved September 23, 2013.
- ^ a b c d e "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.
{{cite web}}: Unknown parameter|deadurl=ignored (|url-status=suggested) (help) - ^ "Report: Albertsons gets Lucky in appeals court decision". San Francisco Business Times. September 11, 2007. Retrieved September 23, 2013.
- ^ "RetailWire Discussion: FD Buyer: Grocery Outlet Grows". retailwire.com.
- ^ Company (September 16, 2014). "Grocery Outlet Announces Partnership with Hellman & Friedman". Grocery Outlet Inc. Retrieved February 27, 2015.
- ^ Food Safety at Grocery Outlet Retrieved Jan. 3, 2016
External links
