Grocery Outlet to Debut Private Label Products in Q3

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.” 

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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.