Grocery Outlet to Expand Private Label Assortment

With an eye toward growth in 2023 and beyond, Grocery Outlet is implementing a three-pronged approach that includes expanding its assortment of private label products.

During the company’s fourth quarter investor conference call, company President RJ Sheedy, said the discount grocer plans to develop and introduce private label items that strengthen the value proposition for its customers while also driving sales and profit. This, he added, is part of Grocery Outlet’s plan to enhance its everyday assortment.

The retailer, which has a small amount of private label items in its current product mix, will initially focus on building its capability and then its merchandising team to drive the initiative. 

“(Private label) has been more opportunistic in nature as we've introduced some of those items and those brands over the year,” Sheedy said. “We are taking a step back from that and thinking long term about what we want private label to represent. The focus for us will be what sets us apart. First and foremost, it's about value.”

As Grocery Outlet works to expand its private label assortment, it will do so with the intent of meeting two goals. The first is to have shoppers view the grocer as a destination for unique products. Second will be to take a treasure hunt approach, offering a selection that is here today but gone tomorrow.

“Think of private label as us being able to offer even better value to customers on the everyday side of the business together with unique items, destination items,” Sheedy said, adding it’s too early to discuss which categories will see expansion of private label products. 

In addition to boosting its private label mix as part of its business evolution efforts, the other major initiatives for Grocery Outlet will be to strengthen its core business model and expand its reach by opening 25 to 28 new stores in 2023. 

“Our unique buying and selling approach has always been and will continue to be the growth engine of this business,” Sheedy said. “It differentiates us and provides a compelling value proposition to a wide range of customers.”

Emeryville, Calif.-based Grocery Outlet offers products sold through a network of independently operated stores at more than 400 locations in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, New Jersey and Maryland. The company is No. 70 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.