Grocery Outlet To Launch Private Label Line

Nearly a year after announcing its forthcoming assortment of private label products, Grocery Outlet is gearing up for the launch later this year.

During an investor conference call to discuss fourth quarter and full fiscal year results, RJ Sheedy, Grocery Outlet’s CEO, said the discount grocer is “looking forward” to the launch of its new private label program. The first new store brand products will hit store shelves in the second half of the year with as many as 100 new SKUs to be available by the end of 2024.

“Our assortment will initially focus on everyday-value commodity categories that deliver better value and margin and complete the full shop,” Sheedy said. “These items will help us capture larger baskets and create a stickier customer relationship. Our private label strategy will also include nosh categories and unique items that will serve as another differentiator, enhancing the customer shopping experience.”

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Water will be the initial category in Grocery Outlet’s private label launch with other categories including baking products, pasta and cheese on deck, Sheedy said, noting that other product categories are on the grocer’s list.

“We’re planning to introduce differentiated items that can further strengthen the treasure hunt experience, further differentiate us, and make us a destination (for certain products,” he said. “But this is just the beginning. This is going to be a longer journey and we’re excited to be taking this first step in getting this initial wave of products out to the stores and to our customers.”

News of the forthcoming new private label assortment caps a busy February for Grocery Outlet. At the midpoint of the month, the discount grocer said it reached an agreement to acquire United Grocery Outlet (UGO), an extreme value, discount grocery retailer operating throughout the Southeastern United States, from affiliates of Gen Cap America, Inc. and current and former UGO management. 

With 40 stores and a distribution center, the acquisition of UGO will expand Grocery Outlet's presence into Tennessee, North Carolina, Georgia, Alabama, Kentucky and Virginia.

"United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions, and shared mission of serving our communities,” said Sheedy. “This acquisition provides Grocery Outlet with scale in a new region as well as a platform for future expansion in the Southeast.”