On an annual basis, store brands represent 17% of brick-and-mortar sales and are growing at a rate of 5% a year - compared with just 1% for national brands on the whole. Grocery Outlet's advantage, according to Lindberg, is that it has greater local involvement and sells branded foods and beverages at a time when the grocery industry is rapidly increasing its focus on store brands. Some of the owners are former store managers at ALDI, a chain the company sees as a direct competitor. According to Lindberg, Grocery Outlet receives 1,200 to 1,500 applications a month to be owners and selects a mere 10. The families determine what products to carry, and their focus is to be hyper-local to meet the needs of the neighborhood. What is different about Grocery Outlet’s business model is that the stores are independently owned and operated by local families. This partnership has allowed Grocery Outlet to expand to 300 stores (with 30 more scheduled for 2018 and 40 to be added in 2019), and it reached $2 billion in sales last year, according to Supermarket News.Ĭo-CEO Eric Lindberg with store owners Sandra and Carlos Torres and their children at their store's. Lindberg told me that 60% of what is sold in the stores is bought opportunistically, that they are expanding to include more fresh foods and that one of their fastest-growing sections falls under their NOSH program: natural, organic, specialty and health. Today the company is run by the third generation of the family, MacGregor Read and Eric Lindberg (who is married to a Read), who are co-CEOs and partner with the private equity firm Hellman & Friedman. The company continued to expand and went beyond its sourcing from the government to contract with national brands including Del Monte, ConAgra, Quaker Oats and Revlon. And those manufacturers now need to find a new home for that product.The company started back in 1946 when the founder Jim Read bought surplus canned food from the government and opened up retail stores to sell it at super-low prices to consumers. “And so, we are an outlet for many manufacturers that produce too much or get canceled by other, larger retailers. “Opportunistic buying,” DeFrancisco said, is the key.
How those items end up on shelves is one thing setting apart Grocery Outlet in the food market industry, he said. More: Imported meats company construction plan approved for near Vineland industrial park More: NJ Transit bus hit, killed intoxicated man, but who's really to blame? Fresh meats and produce as much as possible will be from the area the store is in, too. What is Grocery Outlet?Įric DeFrancisco, general manager for the company on the East Coast, told city official that consumers will find what they would find in a traditional supermarket. Grocery Outlet, with more than 430 locations nationally, is the spotlighted incoming tenant for Park Place Plaza at West Park Avenue and North Delsea Drive. VINELAND - A California-based food market chain that boasts of a special approach for purchasing goods plans to open a store in the heart of Vineland, its deepest move so far into South Jersey.
View Gallery: Grocery Outlet set to open in Hazlet
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