Grocery Outlet Expanding Into Ohio
Grocery Outlet Bargain Market is headed to the Midwest with its latest geographical expansion. The deep discounter is in the process of building out its latest location in the northeastern Ohio city of Boardman following the approval of its compliance permit by the local zoning department.
This is the first Ohio outpost for Grocery Outlet, whose approximately 400 independently operated locations are scattered throughout California, Washington, Oregon, Pennsylvania, Idaho, Nevada, New Jersey and Maryland. The retailer has even more growth plans for the remainder of 2023.
On May 9, the retailer reported that its net sales and sales comps rose by double digits during the first quarter of its fiscal year. According to the company's latest financial report, net sales grew by 16.1% to reach $965 million while comps went up 12.1% in the period and adjusted EBITDA climbed by 36.9% to top $63.1 million.
Grocery Outlet also reported that it completed refinancing in February to lower borrowing costs and increase liquidity and continues to invest in expansion. During Q1, the extreme value retailer opened three new stores and reported that it is on track to open 25 to 29 new stores yet this year.
“Our results exceeded our expectations, driven by strong sustained store sales growth, margin expansion and bottom-line leverage,” summed up President and CEO R.J. Sheedy in an earnings call.
“Evolving our business is about introducing new capabilities to increase our relevancy and improve how we operate,” added Sheedy. “Primary opportunities include enhancing our assortment, investing in technology to drive efficiencies and using data and analytics to improve all aspects of our business.”
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.
