Grocery Outlet Reports Robust Sales Growth In Q3

Third quarter sales at Grocery Outlet were up more than 10% as growth in comparable store sales and the number of transactions were cited as key drivers.

For the quarter ended September 28, net sales increased 10.4% to $1.11 billion. Net income decreased 10.9% to $24.2 million, or $0.24 per diluted share. Comparable store sales increased 1.2%, driven by a 2% increase in the number of transactions that was partially offset by a 0.7% decrease in average transaction size. 

“Our double-digit third quarter net sales growth reflects the strong positioning of our consumer offering – value continues to win in the market and we continue to grow our share of consumer non-discretionary spending,” said Eric Lindberg, chairman and interim president and CEO of Grocery Outlet. “While these results were generally consistent with our expectations, our execution limited growth and earnings during the period. Challenges with the systems conversion have hindered our performance over the past year, and while we have made substantial progress on the implementation, it is critical that we return our focus to what we do best: executing well on the fundamentals and delivering outstanding value to our customers through our dedicated independent operators.”

During the quarter, the company opened five new stores to bring its store count to 529 locations in 16 states.

For the 39 weeks ended September 28, net sales increased 9.9% to $3.27 billion. Comparable store sales increased by 2.6%, driven by a 4.6% increase in the number of transactions, partially offset by a 1.9% decrease in average transaction size.