Grocery Outlet Holding Corp. is a discount grocery store chain based in Emeryville, California. It was founded in 1946 by Jim Read, who opened the first store in San Francisco. The company's mission is to provide high-quality products at low prices, with a focus on closeout and overstocked items from other retailers. Grocery Outlet operates over 400 stores in the United States, primarily in the western and southwestern regions of the country.
Grocery Outlet went public on June 20, 2019, with an initial public offering (IPO) on the NASDAQ stock exchange. The company offered 17,187,500 shares of common stock at a price of $22 per share, raising approximately $378 million. The IPO valued the company at over $2 billion.
As a discount retailer, Grocery Outlet's business model involves purchasing products from manufacturers, distributors, and other retailers at a lower cost and then selling them to customers at a lower price than traditional grocery stores. The company's inventory typically includes a mix of branded and private-label products, including fresh produce, meat, dairy, and dry goods. Grocery Outlet also offers a selection of beer, wine, and other alcoholic beverages.
In addition to its low prices, Grocery Outlet emphasizes its focus on sustainability and reducing food waste. The company partners with Feeding America and other organizations to donate unsold food to local food banks and other nonprofits. In 2020, Grocery Outlet donated over 30 million pounds of food to help fight hunger in the communities it serves.
Grocery Outlet has experienced significant growth in recent years, with revenues increasing from $2.3 billion in 2016 to $3.4 billion in 2020. The company has also expanded its store count, adding 39 new stores in 2020 alone.