Grocery Outlet
Corporate brand
UnclaimedGrocery Outlet is an American discount supermarket brand specializing in opportunistic purchases of overstocked, closeout, seasonal, and private-label grocery merchandise.
Last updated October 16, 2026
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Overview
Grocery Outlet is an American discount supermarket business whose stores sell a changing assortment of branded, private-label, seasonal, surplus, and closeout merchandise at prices intended to be below conventional supermarket levels. The formal store branding is Grocery Outlet Bargain Market, while the public company is Grocery Outlet Holding Corp. Unlike a traditional supermarket chain built around a relatively stable national assortment, Grocery Outlet relies heavily on opportunistic purchasing. Inventory can include excess production, discontinued packaging, seasonal goods, factory seconds, liquidation merchandise, and other products that manufacturers or suppliers need to move quickly. This model gives stores a frequently changing selection and makes individual shopping trips less predictable than at a conventional grocer. The business began in San Francisco on June 11, 1946, when James Read purchased government-surplus food and sold it through vacant retail locations. The original company was called Cannery Sales. In 1970, it acquired Globe of California and adopted the name Canned Foods Warehouse, reflecting a more explicit warehouse-discount positioning. During the 1970s, the company increasingly concentrated on closeout and discounted merchandise, signed supplier agreements with companies including Del Monte Foods, ConAgra, the Quaker Oats Company, and Revlon, and opened its first independently operated store in Redmond, Oregon, in 1973. Following James Read's death in 1982, his sons Steven and Peter assumed management. The company became Grocery Outlet in 1987, and its 100th store opened in 1995. Its later development included acquisitions of liquidated inventories from failed online retailers, an attempted expansion into Texas and Louisiana, the acquisition of Amelia's Grocery Outlet in Pennsylvania, changes in private-equity ownership, and a public offering in 2019. Grocery Outlet shares began trading on the Nasdaq Global Select Market on June 20, 2019, under the symbol GO. A distinctive feature of the operating model is the role of independent store operators. The vast majority of locations are run by local married couples or other independent operators under arrangements with the company. Store operators have latitude to tailor assortments to local demand, which can produce meaningful variation between locations. The model combines centralized sourcing and brand standards with local merchandising judgment. It also allows Grocery Outlet to operate in communities with different tastes, demographics, and competitive conditions without imposing a completely uniform product mix. The product range generally includes packaged and canned groceries, fresh meat, dairy, bread, frozen food, beverages, snacks, household goods, health and beauty products, and private-label items. The assortment changes frequently because closeout and surplus opportunities are not constant. A notable destination within many stores is NOSH, an acronym for natural, organic, specialty, and healthy products. This section has helped the chain appeal to shoppers seeking organic, plant-based, vegan, specialty, or otherwise differentiated products at discount prices. Grocery Outlet's central proposition is value combined with discovery: customers receive low prices, but must accept that a particular product may be temporary or unavailable on a later visit. The company purchases merchandise directly from manufacturers rather than sourcing products from other retail stores. Its identity therefore differs from both a standard supermarket and a conventional liquidation outlet. It presents itself as a neighborhood grocery retailer while using flexible procurement, local store autonomy, and a closeout-oriented supply chain to support discount pricing. The company has operated across western and eastern parts of the United States, including California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, and Delaware. Its history includes both geographic experimentation and retrenchment: the 2003 purchase of 17 Yes!Less stores in Texas and Louisiana was followed by the closure of all of those locations by May 2004. In March 2026, the company announced plans to close 36 locations, including 24 in the eastern United States, after describing fourth-quarter results as unacceptable. That announcement indicates a period of reassessment for the chain's store portfolio and operating performance, although the brand remains active. The company operates in the western and eastern United States, including California, Oregon, Washington, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio, and Delaware.
History
Grocery Outlet traces its origins to June 11, 1946, when James Read established Cannery Sales in San Francisco. Read bought government-surplus food and distributed it through vacant retail locations, creating a business based on acquiring merchandise outside the normal supermarket supply chain and passing savings to consumers. In 1970, Cannery Sales acquired Globe of California and changed its name to Canned Foods Warehouse. The revised business increasingly focused on closeouts, factory seconds, and discounted merchandise rather than a conventional fixed grocery assortment. The company began building supplier relationships during the early 1970s. Its first identified supplier agreement was with Del Monte Foods in 1971, followed by relationships with companies such as ConAgra, the Quaker Oats Company, and Revlon. In 1973, it opened its first independently operated store in Redmond, Oregon. This helped establish an operating model in which local operators could manage stores and adapt merchandise to local demand while the wider organization handled sourcing and brand coordination. After James Read died in 1982, his sons Steven Read and Peter Read took over management. The business was renamed Grocery Outlet in 1987. Growth continued through the 1990s, with the 100th store opening in 1995. The chain's purchasing model also enabled it to acquire unusual inventories from distressed businesses. In 2001, it bought the remaining liquidated inventory of Webvan after the online grocery delivery company entered bankruptcy, and it acquired remaining inventory from Wine.com during that company's financial failure. The corporate entity adopted the name Grocery Outlet, Inc. in 2002. In January 2003, the company bought 16 Yes!Less stores in Texas and one in Shreveport, Louisiana, from Fleming Companies. The geographic expansion did not succeed: all 17 stores were closed by May 2004. The episode illustrates the limits of transferring the company's discount-grocery model into markets where its local operating structure and customer base were less established. Leadership continued to include members of the Read family and their extended network. In 2006, MacGregor Read and Eric Lindberg became co-CEOs, succeeding Steven Read, who became executive chairman. MacGregor Read was the third generation of the Read family to serve as chief executive, while Lindberg was related to chairman Peter Read by marriage. In 2007, Grocery Outlet faced a trademark dispute with Albertsons over use of the Lucky name at a Rocklin, California, store. The Ninth Circuit awarded Albertsons an injunction. In 2009, the company added “Bargain Market” to its store branding, reinforcing its discount positioning. The company expanded in Pennsylvania in 2011 by acquiring the Amelia's Grocery Outlet chain. Ownership also changed during the private-equity period. Berkshire Partners became an investor in 2009, and in 2014 Hellman & Friedman agreed to acquire the company from Berkshire Partners in a transaction involving senior management. Grocery Outlet subsequently moved into the public markets. In June 2019, Grocery Outlet Holding Corp. completed its initial public offering, and its common shares began trading on Nasdaq's Global Select Market on June 20 under the ticker GO. The leadership structure changed again in December 2018, when Eric Lindberg became CEO and MacGregor Read became vice chairman. In January 2023, RJ Sheedy, already the company's president, also assumed the CEO role. The company continued operating a network of supermarket-format discount locations across western and eastern states, with most stores independently operated by local married couples. Its assortment remained centered on direct purchases of closeout, seasonal, surplus, and private-label products, supplemented by staple grocery categories and specialized offerings such as NOSH. On March 4, 2026, Grocery Outlet announced the planned closure of 36 locations, 24 of them in the eastern United States. President and CEO Jason Potter described the retailer's fourth-quarter results as unacceptable and said that more work was required than management had expected. The announcement represented a significant store-portfolio adjustment and a reassessment of performance, particularly in newer or eastern markets. Grocery Outlet nevertheless remained an active discount grocery brand with a national public-company structure and a business model rooted in flexible procurement and local store operation.
- 2026
36 store closures announced
[1]The company announced plans to close 36 locations, including 24 in the eastern United States, following disappointing fourth-quarter results.
- 2019
Public-market debut
[1]Grocery Outlet shares began trading on Nasdaq Global Select Market on June 20 under the symbol GO.
- 2011
Amelia's Grocery Outlet acquired
[1]The company expanded in Pennsylvania by acquiring the Amelia's Grocery Outlet chain.
- 2009
Bargain Market branding introduced
[1]The chain added “Bargain Market” to its store branding.
- 2003
Yes!Less stores acquired
[1]Grocery Outlet acquired 17 Yes!Less locations in Texas and Louisiana, all of which were closed by May 2004.
- 2001
Liquidated inventories acquired from Webvan and Wine.com
[1]The company acquired remaining inventories from Webvan and Wine.com after the online retailers' financial failures.
- 1995
100th store opens
[1]Grocery Outlet reached 100 stores.
- 1987
Company renamed Grocery Outlet
[1]The Canned Foods Warehouse business adopted the Grocery Outlet name.
- 1973
First independently operated store opens
[1]The company opened its first independent store in Redmond, Oregon.
- 1971
First identified supplier agreement
[1]Canned Foods Warehouse signed an agreement with Del Monte Foods as it developed a broader manufacturer-sourcing network.
Products and positioning
A neighborhood discount supermarket built around opportunistic buying, changing closeout assortments, direct manufacturer sourcing, and locally tailored stores. Grocery Outlet combines supermarket essentials with a treasure-hunt shopping experience and emphasizes value across branded, specialty, and private-label products.
Grocery merchandise · 1946
Closeout and surplus groceries
The core assortment consists of branded products purchased when manufacturers or suppliers have excess, discontinued, seasonal, or otherwise closeout inventory. Product availability changes frequently, so an item found in one store or on one visit may not be available later. Grocery Outlet states that merchandise is purchased directly from manufacturers rather than from other retail stores.
Grocery merchandise
Private-label groceries
Private-label food and grocery products supplement the opportunistic branded assortment. These products give the retailer a more dependable value-oriented range while allowing stores to maintain low-price positioning when branded closeout supply is limited.
Natural and specialty grocery
NOSH
NOSH is a store section focused on natural, organic, specialty, and healthy products. It can include vegan, plant-based, and other differentiated foods, giving Grocery Outlet a way to attract shoppers who want specialty or ethical products at discount prices.
Fresh food
Fresh grocery staples
Alongside closeout merchandise, stores carry everyday grocery categories such as fresh meat, dairy, and bread. These staples help the locations function as neighborhood supermarkets rather than solely as liquidation outlets, although exact selection varies by store and supply conditions.
Brand decisions
2026
Store-portfolio reduction announcedStrategyBackground
Management said fourth-quarter results were unacceptable and indicated that operating challenges were greater than previously expected.
Action taken
Grocery Outlet announced the closure of 36 locations, including 24 in the eastern United States.
Aftermath
The announcement signaled a reassessment of the company's store network and eastern-market performance. Longer-term effects were not established in the supplied material.
2019
Initial public offeringOtherBackground
After periods of private-equity ownership and investment, Grocery Outlet pursued access to public equity markets.
Action taken
Grocery Outlet Holding Corp. listed its common stock on the Nasdaq Global Select Market under the ticker GO on June 20, 2019.
Aftermath
The company became a publicly traded grocery retailer.
2011
Acquisition of Amelia's Grocery OutletM&ABackground
Grocery Outlet pursued expansion in Pennsylvania through a regional grocery acquisition.
Action taken
The company acquired the Pennsylvania-based Amelia's Grocery Outlet chain.
Aftermath
The transaction expanded Grocery Outlet's presence in Pennsylvania and supported its broader eastern-market footprint.
2003
Expansion through the Yes!Less acquisitionStrategyBackground
Grocery Outlet sought to expand beyond its established markets by acquiring 16 Yes!Less stores in Texas and one in Shreveport, Louisiana.
Action taken
The company purchased the 17-store group from Fleming Companies and operated the locations under its discount-grocery strategy.
Aftermath
The expansion was reversed, with all 17 locations closing by May 2004.
Recent events
Reported
Grocery Outlet plans Pullman store opening[2]
Grocery Outlet was slated to open a store in Pullman in early September, occupying 24,000 square feet. The article reports this as a plan, not a completed opening.
Reported
Grocery Outlet raises fiscal 2019 guidance[3]
Grocery Outlet raised its fiscal 2019 guidance, including projected net sales to slightly above $2.55 billion and adjusted EBITDA to $167.0 million to $168.0 million.
Reported
Grocery Outlet reports third-quarter fiscal 2019 results[3]
Grocery Outlet announced its third-quarter fiscal 2019 financial results, reporting net sales of $652.5 million and net income of $12.4 million for the quarter ended September 28, 2019.
Sources3 sources
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