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Grocery Outlet Holding Corp. (GO) is a high-growth, extreme value retailer specializing in quality, name-brand consumables and fresh products. The company operates through a network of independently operated stores, which are managed by entrepreneurial operators who provide personalized customer service and localized product offerings. Grocery Outlet's flexible buying model allows it to source opportunistic products at significantly lower prices, offering customers savings of 40% to 70% compared to conventional retailers.
- Name-Brand Consumables - Offers a wide range of branded packaged goods, including snacks, beverages, and household essentials, sourced opportunistically to provide significant discounts.
- Fresh Products - Provides fresh produce, dairy, meat, and bakery items tailored to local customer preferences through its independently operated stores.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Eric J. Lindberg, Jr. ExecutiveBoard | Interim President and CEO, Chairman of the Board | None | Eric J. Lindberg, Jr. has been with Grocery Outlet since 1996, serving in various leadership roles including CEO and Co-CEO. He is currently the Interim President and CEO and Chairman of the Board. | |
Andrea R. Bortner Executive | EVP, Chief Human Resources Officer | None | Andrea R. Bortner has been with Grocery Outlet since March 2020, previously serving as CHRO at Maxar Technologies and Catalina. She focuses on human capital management and employee development. | |
Calvin Chung Executive | SVP, Chief Store Development Officer | None | Calvin Chung joined Grocery Outlet in March 2023, previously holding senior roles in real estate and development at Office Depot and Walmart. | |
Christopher M. Miller Executive | EVP, Chief Financial Officer | None | Christopher M. Miller joined Grocery Outlet in January 2025, with extensive experience in financial leadership roles at Shamrock Foods and Core-Mark Holding Co.. | |
Jason Potter Executive | President and Chief Executive Officer | None | Jason Potter joined Grocery Outlet in February 2025, previously serving as CEO of The Fresh Market. He has over 30 years of experience in the grocery retail industry. | |
Lindsay E. Gray Executive | Interim Chief Financial Officer and SVP, Accounting | None | Lindsay E. Gray has been with Grocery Outlet since August 2016, serving in roles such as SVP, Accounting, and Interim CFO since March 2024. She has played a significant role in financial reporting and accounting. | |
Luke D. Thompson Executive | EVP, General Counsel and Secretary | None | Luke D. Thompson has been with Grocery Outlet since July 2022, serving as General Counsel and Secretary. He has a background in legal roles at Big 5 Sporting Goods. | |
Pamela B. Burke Executive | EVP, Chief Stores Officer | None | Pamela B. Burke joined Grocery Outlet in June 2015, serving in roles such as General Counsel and Secretary before becoming Chief Stores Officer in January 2022. She oversees store operations and development. | |
Ramesh Chikkala Executive | EVP, Chief Operations Officer | Board Director at Hibbett, Inc.; Advisory Board Member for Vorto | Ramesh Chikkala joined Grocery Outlet in January 2024, leading Supply Chain and Business Technology functions. He has extensive experience in retail operations and supply chain management. | |
Robert J. Sheedy, Jr. Executive | President and Chief Executive Officer | None | Robert J. Sheedy, Jr. has been with Grocery Outlet since April 2012, serving in various roles including President and CEO since January 2023. He has implemented growth initiatives and digital transformation projects. | |
Steven K. Wilson Executive | EVP, Chief Purchasing Officer | None | Steven K. Wilson has been with Grocery Outlet since 1994, serving in various purchasing roles. He has contributed to the company's growth and success in purchasing operations. | |
Carey F. Jaros Board | Independent Director | President and CEO of GOJO Industries | Carey F. Jaros has been an Independent Director at Grocery Outlet since September 2020, with expertise in corporate strategy and business operations. | |
Erik D. Ragatz Board | Lead Independent Director | Chairman at Snap One Holdings Corp.; Executive Chairman at At Home Group, Inc.; Chairman at The New Leaf Company BV | Erik D. Ragatz has been with Grocery Outlet since October 2014, serving as Chairman of the Board until December 2022 and now as Lead Independent Director. | |
Gail Moody-Byrd Board | Independent Director | VP, Marketing at LinkedIn; Board Member at Juma Ventures | Gail Moody-Byrd has been an Independent Director at Grocery Outlet since January 2021, contributing her expertise in marketing and strategic planning. | |
Jeffrey R. York Board | Director | Chairman at Braille Energy Systems, Stria Lithium, Focus Graphite; Special Advisor to Sobeys, Inc. | Jeffrey R. York has been a Director at Grocery Outlet since November 2010, with extensive experience in the grocery and food retail industries. | |
John ("Jeb") E. Bachman Board | Independent Director and Chair of the Audit and Risk Committee | Director at The Children’s Place Inc. | John ("Jeb") E. Bachman has been an Independent Director at Grocery Outlet since November 2019, recognized as an audit committee financial expert. | |
Kenneth W. Alterman Board | Director and Chair of the Compensation Committee | Board Member at Essex Technology Group, LLC | Kenneth W. Alterman has been a Director at Grocery Outlet since February 2011, with significant experience in the discount retail industry. | |
Mary Kay Haben Board | Independent Director | Director at The Hershey Company; Director at Equity Residential | Mary Kay Haben has been an Independent Director at Grocery Outlet since November 2019, focusing on governance and diversity initiatives. She has extensive experience in consumer goods and corporate governance. | |
Thomas F. Herman Board | Independent Director | None | Thomas F. Herman has been an Independent Director at Grocery Outlet since 2004, serving on the Audit and Risk Committee and the Nominating and Corporate Governance Committee. |
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Given that gross margins declined by 70 basis points in Q4 2024 due to higher inventory shrinkage and systems issues , can you provide more detail on the specific steps you are taking to resolve these systems-related challenges, and by when do you expect margins to return to previous levels?
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Your guidance for 2025 comparable store sales growth of 2% to 3% is below your historical mid-single-digit run rate ; what factors are contributing to this slower growth, and are there any changes in the competitive environment impacting your performance?
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With the reduction in planned new store openings to 33-35 stores in 2025 from an initial plan of 55-60 stores , how does this impact your long-term growth strategy, and what measures are you taking to ensure a healthy pipeline of new stores beyond 2025?
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Historically, your adjusted EBITDA margin has been around 6%, but it's currently below that level ; do you anticipate returning to your historical margin profile, and what initiatives are in place to drive margin expansion?
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Regarding the integration of United Grocery Outlet (UGO) into your independent operator model , can you elaborate on the progress made so far, and are you considering keeping any stores as company-operated rather than transitioning them to the IO model?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Cited as a retailer where customers also shop for consumables, competing on price, selection, quality, customer service, and convenience. | |
Safeway | Identified as a retailer where customers also shop for consumables, competing on similar factors such as price and selection. |
Considered a competitor due to its broad product offerings at low prices relative to conventional grocery stores. | |
WinCo | Recognized as a competitor offering consumable products at low prices, similar to discount retailers. |
Listed as a competitor in the discount retail space with broad product offerings. | |
Trader Joe's | Competes as a discount retailer with a focus on consumable products. |
Aldi | Identified as a competitor in the discount grocery sector, offering low-priced consumables. |
Lidl | Competes in the discount grocery market with low-priced consumables and has increased its presence in overlapping geographic markets. |
Competes as an opportunistic purchaser of excess merchandise for resale. | |
99 Cents Only | Listed as a competitor in acquiring excess merchandise for resale. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
United Grocery Outlet | 2024 |
Recent press releases and 8-K filings for GO.
- Net sales increased by 8.5% to $1.13 billion with comparable store sales up 0.3%, reflecting growth from new store sales and operational improvements.
- Gross margin improved to 30.4%, while the company reported an operating loss of $22.5 million and a net loss of $23.3 million, partly due to $33.9 million in restructuring charges.
- Adjusted net income rose to $13.0 million and adjusted EBITDA increased by 31.7% to $51.9 million, underscoring enhanced financial performance.
- Levi & Korsinsky has announced the filing of a class action lawsuit on behalf of Grocery Outlet shareholders, alleging securities fraud linked to the company's financial disclosures.
- The suit covers alleged misconduct from November 7, 2023 to May 7, 2024, following a Q1 fiscal 2024 announcement that reported below-expectation results and reduced guidance, which contributed to a significant share price drop to $20.88 on May 8, 2024.
- Affected investors have until March 31, 2025 to request lead plaintiff status without incurring any costs.