Grocery Outlet’s Former CEO Returning to Lead Company
The leadership at Grocery Outlet Holding Corp. is in flux, with former CEO and current Chairman of the Board Eric Lindberg being named the company’s interim president and CEO, effective immediately. Lindberg is stepping into the role following R.J. Sheedy’s departure from the position, as well as his resignation from the company’s board of directors.
Grocery Outlet’s board of directors has hired a global executive search firm to help identify a permanent CEO. For his part, Lindberg previously served as CEO or co-CEO of the company from January 2006 to December 2022.
“On behalf of the board, I want to express my deep appreciation to RJ for his contributions to Grocery Outlet over the past 12 years,” said Lindberg. “RJ played a critical role in scaling and evolving our business and has set the stage for continued strong growth in the future.
Continued Lindberg: “The fundamentals of our business – the significant value and treasure hunt shopping experience we bring to customers – remain strong and the runway in front of us is substantial. I look forward to working with our employees, independent operators and supplier partners to deliver outstanding execution on our strategy and unlock Grocery Outlet’s earnings potential.”
In addition to the CEO transition news, Grocery Outlet has shared preliminary financial results for its third quarter. The company expects net sales for Q3 to be $1.1 billion, which is a 10.4% year-over-year increase, with comparable store sales increasing 1.2%. Overall, Grocery Outlet expects to meet previously released Q3 earnings guidance.
Grocery Outlet said it is in the process of reassessing its full-year guidance, but expected to exceed the high end of the range of its full-year net sales guidance of $4.30 to $4.35 billion. However, the company expects to reduce its full-year adjusted EBITDA guidance to below the low end of the previously disclosed range of $252.0 to $260.0 million.
Final Q3 earnings results will be shared on Nov. 5.
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.
