Grocery Outlet Closing Texas, Louisiana Stores

BERKELEY, Calif. - Grocery Outlet, a privately held deep-discount retailer with 118 stores in the western United States, announced yesterday that it will close its locations in Texas and Louisiana by May. 1. One of the closing stores, in Arlington, Texas, is featured as PROGRESSIVE GROCER's "Store of the Month" for March 2004.

According to Grocery Outlet v.p. of marketing Jon Wylie, the company, which earned more than $500 million in sales last year, is "experiencing significant growth in our longtime traditional markets of California, Oregon, Washington, Arizona, Utah, Nevada, Idaho, and Hawaii. Given this, it is smart for us to focus and streamline our financial and managerial resources where growth is occurring more rapidly."

Wylie continued: "Our experience in the north Texas market tells us that we can succeed there with more time and resources. But, for now, our growth in the West demands our full attention."

The company entered the Texas and Louisiana markets in June 2003, when it purchased the assets of 17 Yes!LESS discount grocery locations from Lewisville, Texas-based Fleming Cos., Inc.

Grocery Outlet offers customers big savings by helping consumer packaged goods companies remarket product overruns, package changes, and overstocks. The decision to pull out of the markets affects 16 stores in Texas and one in Louisiana.
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