Atlanta could soon get an exciting new grocer. Grocery Outlet, a discount grocer currently found primarily on the West Coast where the company is based, this past week announced it had acquired United Grocery Outlet, a similar but smaller chain based in Athens, Tennessee.
Established in San Francisco in 1946 and today based in Emeryville, California, Grocery Outlet has grown to include more than 460 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, New Jersey, and Ohio.
By comparison, United Grocery Outlet got its start in Etowah, Tennessee in 1974, and today, following an opening last month in Kingsport, Tennessee, includes forty stores in Alabama, Georgia, Kentucky, North Carolina, Tennessee, and Virginia. More than half of United Grocery Outlet's stores are in their home state of Tennessee but the company has a limited presence in northwest Georgia including stores in Dalton, Ringgold, Summerville, and Chatsworth. The company's website indicates a new store is "coming soon" to Hixson, Tennessee.
Both stores sell similar products including brand-name goods that are opportunistically acquired. One could say that in some ways the grocers are the grocery equivalent of T.J. Maxx.
We visited several Grocery Outlet stores on a visit to Palm Springs, California this past fall and were pleasantly surprised by the pricing. Pictured below are two of the more incredible finds we came across.
“United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions, and shared mission of serving our communities. This acquisition provides Grocery Outlet with scale in a new region as well as a platform for future expansion in the Southeast. We are excited to welcome the United Grocery Outlet team into the GO family, and we look forward to working together on the many growth opportunities ahead.” The company said in a release announcing the purchase.
Grocery Outlet does not operate its own stores, instead, it employs a model similar to Chick-fil-A where "Independent Operators" run individual stores but have the support of the home office to guide and collaborate with in administrative, marketing, and other administrative needs.
United Grocery Outlet operates its stores like a traditional retailer with the parent corporation owning and operating the stores, rather than local "operating partners." It's unclear what plans Grocery Outlet has for the southern stores and how or if they plan on integrating/rebranding the stores.
Grocery Outlet rarely acquires rival chains but has more regularly bought out merchandise of defunct companies such as when they acquired the inventories of failed grocery delivery company Webvan and of failed online wine merchant, Wine.com.
After years of private ownership, Grocery Outlet went public in 2019, trading on the NASDAQ under ticker "GO."
United Grocery Outlet, which celebrates its 50th year in business this year, is expected to close on the deal with Grocery Outlet Holding Corp. in the early second quarter of 2024. Financial details of the acquisition were not made public. Grocery Outlet plans to open between 15 and 20 new stores in 2024, the company said.
Have you ever been to a Grocery Outlet or United Grocery Outlet? What is your favorite off-price retailer? If Grocery Outlet expands locally, where would you like to see them open?
Please share your thoughts below.
11 comments:
Kind of like a Cub’s. And how was the Waffle Crisp? I thought they stopped making that in 1985.
This chain does not seem to be either exciting or new. Sure, it is a good concept in theory, but there probably never will be one ITP.
If Grocery Outlet does come to the Atlanta area, one place that immediately comes to mind is the former Food Depot on Jimmy Carter near Atlanta Comedy Theater in Norcross. It might not even need that much remodeling since it was previously a grocery store! I feel like it was going to become a flea market for a while, but then they took down the coming soon signs and there's been no movement since, so maybe that fell through?
This is good news, since most of the time I'm at Big Lots, Ollies, Bargain Hunt, etc., I'm seeking out deals on food. Hopefully they move closer to metro Atlanta.
*because it was previously…
No thanks.
it would be good in a food desert.
I've been to the grocery outlet in Kingsport Tennessee. It's new and clean. They have great prices and are very busy. Some items cheaper than Walmart. Seriously. Reminds me of Aldi. They sell a product and once it's gone it is gone. Grocery outlet don't have their own product line and so they sell name brands. Really cheap. On site butcher and the meats look good. If you give them a chance I think you'll be surprised. They won't go itp.
*a grosserie store….
They have good food dessert, you mean.
Food Outlet might work in a food desert but who else is willing to take the risk? After a single health incident they'll shutter.
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