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Unlike many companies that went public this year, Grocery Outlet is profitable. It has recorded 15 consecutive years of store sales growth for at least one year and had sales of $ 2.3 billion last year. And he does not even sell online.
"The pursuit of value by consumers is the new standard in retail," said Grocery Outlet in his paper. "The success of non-price retailers is a secular change for consumers."
Other retailers have also recently capitalized on bargain hunting buyers.
Along with these fast-growing discount retailers, Grocery Outlet buys branded products directly from low-cost suppliers. It sells groceries, fruits and vegetables, chilled and frozen foods, alcohol, meat and seafood, as well as health and beauty products in its stores. small stores of 15,000 square feet, about 40% less than traditional grocery stores.
The company relies on an opportunistic purchasing strategy to acquire the products of its 1,500 suppliers, most of whom are the country's leading consumer product manufacturers.
When a grocery store, a grocery store or a pharmacy cancels an order from a manufacturer, that a manufacturer produces too much of an item or that a supplier alters the packaging of the product, Grocery Outlet buyers step in to collect the additional stock.
Food stores offer a limited amount of items, but the chain frequently changes the products on the shelves to create a shopping experience looking for fun, similar to TJMaxx. The company believes that constantly changing merchandise creates a "sense of urgency" and encourages customers to return to their stores.
Grocery Outlet becomes public to help finance its growth plans.
The company plans to open more than 30 stores in 2019. In the long term, it will be able to open an additional 400 stores in its existing states – California, Idaho, Nevada, Oregon, Washington, and Pennsylvania – and another 1,600 stores in neighboring states.
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