Do you know what Grocery Outlet (GO) is?
CEO Eric Lindberg referred to it as the TJ Maxx “for food” when he spoke to TheStreet.
But what exactly does that mean? Lindberg broke it down.
“We buy directly from manufacturers. Discounted products, we pass on that 40 to 70% savings to customers. It is a treasure hunt. You go into the store this week, you’ll see different brands next week and next month, the next year. We’re constantly curating a mix of, of incredible brands–natural, organic, specialty, healthy, fresh products. And then we sell in a very, very interesting differentiated model with independent operators. So think about it like a franchise, although it’s not technically a franchise, but they have a stake in the store. They split the profits with us and they’re connected deeply in the community. So we put those two things, the values plus the independent operator together into the grocery outlet bargain market,” he explained.
The company also just IPO’d. But what does it plan on doing in the next five years?
“More growth. Tracking more operators. We’re really excited about the independent operator model that we have. You know, connecting with more suppliers. It’s really a simple strategy. Continuing to comp our same-store sales. Very, very important to us. We’ve had a nice string of 15 years of same-store sales growth and just doing what we do. We know how to find real estate, we know how to buy products. We know to attract great operators, get them trained and get them deployed into stores. So, yeah, it may be boring, but we want to stick to our niche and keep doing the things that we do really well,” he continued.