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Grocery Outlet to Debut Private Label Products in Q3

Program another key differentiator in providing more value for consumers
Marian Zboraj, Progressive Grocer
Grocery Outlet
The first private label items to hit Grocery Outlet stores will be in the beverage and grocery categories.

Extreme-value retailer Grocery Outlet Holding Corp. has revealed that it will introduce a private label program to its stores in the third quarter. The announcement was made during the company's earnings call for its less-than-stellar first quarter

According to President and CEO RJ Sheedy, the first items to hit stores will be in the beverage and grocery categories. These initial products will be followed by additional items in both of these categories as well as within the dairy, household and baking categories. Grocery Outlet is on track to introduce approximately 100 new private-label SKUs by the end of the year.

Sheedy explained that the new private label program will be an enhancement to the company's everyday assortment in a couple of different ways. “One is value,” he said. “I always think about value first. These items will provide better value for customers relative to items that they may be replacing, and that is the case with some of them."

The company also thinks about better margin for the business. Lastly, private label offers another point of differentiation. Sheedy said that many of these items will be more unique products, “whether in the NOSH [Natural, Organic, Specialty, and Healthy] space, different formulations, new adds to the shop that create another reason for customers to shop our stores beyond just the value that they provide. 

[RELATED: Why Grocers Should Elevate Health & Wellness Benefits in Private Label]

Overall, Grocery Outlet is excited about the upcoming program. “I remain very confident in our business fundamentals and our ability to realize our long-term growth potential,” added Sheedy.

Emeryville, Calif.-based Grocery Outlet offers products sold through a network of independently operated stores at more than 470 locations in nine states. The company is No. 66 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America

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