Grocery Outlet Highlights ESG Progress
Grocery Outlet Holding Corp. has released the publication of its second annual Impact Report covering fiscal year 2023.
“Grocery Outlet’s mission of Touching Lives for the Better has been at the foundation of our business throughout our 78-year history," said RJ Sheedy, president, CEO and member of the board of directors for Grocery Outlet. "We believe that our future success is intertwined with the well-being of our stakeholders and we are proud to highlight our progress and the positive environmental and social impacts we’ve accomplished in our second annual report."
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Some of the key impact areas highlighted in the report are:
- Saving Customers Money: Grocery Outlet passed onto its customers an estimated $2.8 billion in savings in 2023. According to the company, its discounts and bargains save customers an estimated 40% over conventional grocers on average and 40-70% on WOW! items.
- Providing Opportunities to Independent Operators: As of the end of 2023, Grocery Outlet supported 447 independent operators network-wide and created 44 entrepreneurial opportunities for new operators in new and existing stores in 2023.
- Reducing Food Waste: Grocery Outlet’s opportunistic sourcing model naturally supports food waste reduction by focusing on excess inventory and increasing the likelihood that surplus food will be sold to consumers rather than discarded.
- Improving Operational Efficiency: More than 98% of Grocery Outlet stores use timed lighting and heating systems to lower energy consumption, and 100% of stores use an Energy Management System. In 2023, Grocery Outlet also discontinued printed advertisement circulars.
- Giving Back to Communities: Grocery Outlet partners with its independent operators to give back to its communities through initiatives like educational programs, donations to local food banks, and the company’s annual Independence from Hunger Campaign, which raised more than $3.9 million in 2023.
Additionally, the extreme value retailer recently announced that it raised over $4.8 million for local food banks in each of its stores’ communities through its 14th consecutive Independence from Hunger Food Drive. From June 26 through July 31, more than 470 Grocery Outlet locations nationwide participated in the campaign to collect cash donations and pre-made bags of groceries that were distributed to local food agency partners.
Meanwhile, Grocery Outlet experienced better-than-expected gross margins and earnings for its second quarter ended June 29. Although decreased by 140 basis points, the 30.9% gross margin was 90 basis points ahead of expectations and a 160-basis-point improvement from the first quarter.
Emeryville, Calif.-based Grocery Outlet offers products sold through a network of independently operated stores at more than 520 locations in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia. The company is No. 66 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
