Type Private Founder James Read Founded 11 June 1946 General counsel Pamela Burke | Industry Retail / Grocery Number of locations 265 CFO Charles Bracher CIO Jeff Oki (Vp New Markets) | |
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Formerly called Cannery Sales (1946–1970)
Canned Foods (1970–1987) Key people Eric Lindberg & MacGregor Read, Co-CEOs Products Bakery, dairy, deli, frozen foods, general grocery, meat, produce, snacks, beer & wine Headquarters Berkeley, California, United States CEO Eric Lindberg (2006–), MacGregor Read (2006–) | ||
Grocery Outlet, supermarket chain previously known as Canned Foods Grocery Outlet, is owned by private equity firm and operated by the founding Read family. It focuses on discount overstocked and closeout products from name brand and private label suppliers. James Read founded the company on June 11, 1946 in San Francisco, California. Grocery Outlet operates in California, Oregon, Washington, Idaho, Nevada and Pennsylvania. Its co-CEOs are Eric Lindberg and MacGregor Read.
Contents
The majority of Grocery Outlet’s stores are independently operated by locally based married couples. Each store also has flexibility in its product offerings to better serve local tastes and demand.
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History
On June 11, 1946, James Read bought government surplus food products and sold them in vacant stores throughout San Francisco. He named his new company Cannery Sales.
In 1970, Cannery Sales acquired Globe of California and renamed it Canned Foods. Canned Foods changed to selling closeout, factory second, and discounted products.
In 1971, Canned Foods signed its first supplier agreement, an agreement with Del Monte Foods. It later signed agreements with companies such as ConAgra, the Quaker Oats Company, and Revlon. Canned Foods opened its first independent store in Redmond, Oregon in 1973.
Following founder James Read's death in 1982, his sons Steven and Peter Read took over company management. In 1987, the company was renamed Grocery Outlet. Grocery Outlet’s 100th store opened in 1995.
In 2001, Grocery Outlet acquired all remaining liquidated inventories of Webvan following the online grocery delivery service’s bankruptcy. During the same year, Grocery Outlet acquired online retailer Wine.com’s remaining inventory following that retailer’s bankruptcy. In 2002, the company changed its corporate name to Grocery Outlet, Inc.
Grocery Outlet purchased 16 Yes!Less grocery stores in Texas and another in Shreveport, Louisiana from Dallas, Texas-based Fleming Cos. in January 2003. All of the 17 stores were closed by May 2004.
The company promoted MacGregor Read and Eric Lindberg to co-CEO in 2006. Prior to their appointment, Read was vice president of real estate and Lindberg vice president of purchasing for the company. They took over for Steven Read, who became executive chairman of Grocery Outlet. MacGregor Read is the son of Steven Read and Lindberg the son-in-law of Grocery Outlet Chairman Peter Read. MacGregor Read is the third generation of the Read family to serve as CEO of Grocery Outlet.
In 2007, the United States Court of Appeals for the Ninth Circuit awarded Albertsons an injunction against Grocery Outlet over Grocery Outlet’s use of the Lucky brand name in a Rocklin, California store.
In 2011 Grocery Outlet acquired a Lancaster County based chain of stores named Amelia's Grocery Outlet.
In 2014, Hellman & Friedman LLC a private equity fund agreed to partner with senior management and acquire the Grocery Outlet from principal owner Berkshire Partners LLC.
Products
Grocery Outlet's inventory comes primarily from overstocks and closeouts of name brand groceries, as well as private label groceries. Grocery Outlets buy mostly closeout or seasonal merchandise, so particular brand names change often. The company’s stores also carry food staples such as fresh meat, dairy and bread. All products sold by Grocery Outlet are purchased directly from manufacturers, not other retail stores.
Grocery Outlet says its stores keep certain products on shelves beyond the "best if used by" dates: "Some items, including soft-ripened cheeses, non-dairy creamers, dough products, juices, and smoked salmon are pulled 7 days after their “Best If Used By” date, because they are still safe to eat. All other product (shelf-stable grocery) must be pulled no later than 30 days past the “Best If Used By” date." The company states that: "'Use-by' dates usually refer to best quality and are not safety dates."