2025 Retailers To Watch: Grocery Outlet
It’s been another banner year for private label as retailers ranging from the biggest mass merchants to grocery stores, convenience store chains, drug stores, and department stores expanded their respective own brand assortments.
The conversation in 2024 evolved from one that was focused on price to retailers now regularly talking about the value proposition of their store brand products and using their proprietary assortments to differentiate from the competition.
With 2025 expected to see more private brand development, Store Brands has highlighted 10 Retailers To Watch in the coming year. The following retailers in 2024 expanded their own brand product assortments, with more expected from each in the next 12 months.
Grocery Outlet
Overview
Grocery Outlet is growing. With new stores popping up in key markets, the discount grocer also expanded its presence in the Southeast and South through its acquisition of United Grocery Outlet. The deal gave Grocery Outlet 40 additional stores along with a distribution center.
Additionally, Grocery Outlet this year also launched its first private label product assortment. The SimplyGO brand includes beverages, dairy, baking, pasta, home essentials, and pet products. The grocer was expecting to have as many as 100 private label SKUs in stores by the end of 2024.
What To Watch
Consumers’ quest for money-saving options was a key driver of growth for Grocery Outlet in recent years. As prices moderate, will the grocery be able to keep those shoppers while looking to expand its customer base to consumers in higher income levels?
One key to its continued success is opportunistic buying, which allows Grocery Outlet to acquire excess inventory from manufacturers and pass the savings on to shoppers. This flexible sourcing model ensures a constantly changing assortment of products, creating a “treasure hunt” shopping experience that keeps customers coming back.
In the coming year, the grocer is expected to further capitalize on shifting consumer behaviors, especially as budget-conscious shoppers seek alternatives to traditional grocery chains. The retailer has been expanding its footprint, particularly in underserved markets, offering an accessible, affordable option for communities in need.
Private label should also play a significant role in the coming year. With more consumers gravitating toward store brands, the retailer’s growing assortment of exclusive private label items helps differentiate it from competitors while driving higher margins. This focus on value and exclusive offerings positions Grocery Outlet to capture a larger share of the grocery market in the coming year.
Grocery Outlet’s continued store expansion is also worth watching. While new stores are anticipated in the coming year, could the grocer continue to find opportunities to expand through acquisition? That question will be answered in the year ahead.
