TJ Maxx for groceries.

A grocery store version of TJ Maxx or Ross Dress for Less.

• Groceries: A comprehensive range of food items, including packaged goods, fresh produce, dairy, meat, and frozen foods.
• Household Goods: Essential non-food items for the home, such as cleaning supplies, paper products, and pet food.
• Health & Beauty Aids: Personal care products, cosmetics, and over-the-counter medications.
• Wine & Beer: A selection of alcoholic beverages, typically offered at discounted prices where legally permitted.

Grocery Outlet (symbol: GO) sells primarily to individuals, operating a chain of discount grocery stores that serve consumers directly.

The company serves the following categories of individual customers:

• Value-conscious Shoppers: These customers prioritize saving money on their grocery bills. They are attracted to Grocery Outlet's deep discounts on everyday essentials, often purchasing private label products or well-known brands at significantly lower prices than traditional supermarkets.
• "Treasure Hunters" / Opportunistic Shoppers: This category includes shoppers who enjoy the dynamic and often unpredictable inventory at Grocery Outlet. They seek out unique deals, premium brands at discount prices, or specialty items that appear temporarily due to Grocery Outlet's opportunistic buying model. They appreciate the novelty and excitement of finding unexpected bargains.
• Budget-conscious Families and Households: Families and households looking to maximize their grocery budget for a larger group often frequent Grocery Outlet. They leverage the store's low prices to stretch their purchasing power further, ensuring they can provide for their household without overspending on groceries.

Jason Potter, President and Chief Executive Officer

Jason Potter was appointed President and Chief Executive Officer of Grocery Outlet, effective February 3, 2025. He brings over 30 years of grocery retail experience to the role, having most recently served as CEO of The Fresh Market, where he oversaw its transformation.

Christopher Miller, Executive Vice President and Chief Financial Officer

Christopher Miller was appointed Executive Vice President and Chief Financial Officer, effective January 6, 2025. He previously served as CFO of Shamrock Foods Company for nearly two years. Prior to that, he spent over 15 years at Core-Mark Holding Co., where he held various financial and leadership roles, including Executive Vice President and Chief Financial Officer, and Vice President and Chief Accounting Officer. Core-Mark Holding Co. was acquired by Performance Food Group Company in September 2021. Miller's background also includes finance and accounting roles at Cost Plus World Market, Levi Strauss & Co., and Hermes.

Eric Lindberg, Chairman of the Board

Eric Lindberg serves as the Chairman of the Board for Grocery Outlet. He previously served as Interim President and Chief Executive Officer from October 2024 until Jason Potter's appointment on February 3, 2025, and is a former CEO of the company.

Ramesh Chikkala, Chief Operations Officer; Executive Vice President

Ramesh Chikkala was appointed as Grocery Outlet's first Chief Operations Officer in January 2024. He is a former Walmart executive.

Pamela Burke, Chief Stores Officer

Pamela Burke serves as the Chief Stores Officer for Grocery Outlet. She has also been identified as Chief Administrative Officer (CAO) and General Counsel.

The expansion of direct-to-consumer (DTC) and subscription models for discounted and opportunistic food products poses a clear emerging threat. Companies such as Imperfect Foods and Misfits Market directly compete with Grocery Outlet's core opportunistic buying strategy by offering 'ugly' produce, surplus inventory, and closeout items at discounted prices. These DTC models leverage e-commerce and direct home delivery, providing a convenient alternative for value-conscious consumers who are also interested in sustainability and reducing food waste. As these services scale, expand their product ranges, and increase their geographical reach, they offer a direct-to-door channel for accessing discounted groceries, potentially diverting a significant segment of Grocery Outlet's target customer base that might otherwise rely on the in-store 'treasure hunt' experience.

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Expected Drivers of Future Revenue Growth for Grocery Outlet (GO)

• New Store Expansion: Grocery Outlet continues to prioritize opening new stores. The company has been expanding its store footprint at a rapid pace, averaging 10.8% annual growth over the past two years, significantly faster than the broader consumer retail sector. In 2025, Grocery Outlet plans to open 33-35 net new stores, a key component of its ongoing expansion strategy. This strategy allows the company to capitalize on "white space" to build new locations and scale into a mid-sized business.
• Store Refresh Program: The company is accelerating its store refresh program, which has demonstrated positive outcomes. Pilot stores undergoing this refresh have shown a "mid-single-digit comp lift". Management views the scaling of this program, which focuses on merchandising, assortment, and in-store messaging, as the primary driver for accelerating comparable sales growth in the coming year, with plans to complete 150 store refreshes by the end of 2026.
• Enhancing Comparable Store Sales (Same-Store Sales) Growth: While recent comparable store sales growth has been inconsistent, Grocery Outlet is implementing initiatives to improve this metric. Efforts include enhancing in-stock positioning for high-velocity items, utilizing a real-time order guide that has delivered a 200-basis-point comparable sales lift in test stores, and deploying a new forecasting tool for meat and produce, which has resulted in double-digit sales increases in pilot locations. The company has also refined its "Known Value Item" pricing strategy to ensure 15-20% basket savings compared to discount peers.
• Leveraging its Differentiated Value Proposition: Grocery Outlet's unique off-price business model, offering 40-70% price discounts on an ever-changing assortment of approximately 5,000 SKUs, remains a core competitive advantage. This value-driven approach, characterized by opportunistic sourcing of quality name-brand products and locally operated stores, positions the company to attract customers seeking significant savings, especially in dynamic economic environments.

Share Repurchases

• Grocery Outlet initiated a share repurchase program, effective November 5, 2021, authorizing the company to repurchase up to $100.0 million of its common stock.
• In the fourth quarter of fiscal 2024, the Board of Directors approved a new share repurchase program.

Share Issuance

• No significant share issuances by Grocery Outlet to raise new capital were explicitly identified within the last 3-5 years.

Inbound Investments

• No large inbound investments by strategic partners or private equity firms into Grocery Outlet were explicitly identified within the last 3-5 years.

Outbound Investments

• Grocery Outlet acquired United Grocery Outlet, adding approximately 40 stores in the Southeast for a price of $62 million. This acquisition led to an increase in long-term debt by $182.4 million in net debt at the time.

Capital Expenditures

• Capital expenditures for the first quarter of fiscal 2025 were $65.3 million (before tenant improvement allowances), driven primarily by increased supply chain investments and additional new store openings.
• For fiscal year 2025, total capital spending is expected to be approximately $210 million, with a target of opening between 33 and 35 net new stores.
• A meaningful reduction in capital expenditures is anticipated for 2026, even with plans to complete 150 store refreshes by the end of 2026, focusing on layout improvements, expanding core assortment, and enhancing in-store messaging.