Value supermarket retailer Grocery Outlet will acquire United Grocery Outlet, a 40-store chain with a similar business model, to gain a presence in the Southeast. Grocery Outlet, based in Emeryville, Calif., operates more than 460 stores in nine Western and Mid-Atlantic states. Financial details of the transaction, which is expected to close early in Q2, were not disclosed.
In addition to the 40 stores it will gain with this acquisition, Grocery Outlet also plans to open 15 to 20 stores in its existing markets in 2024 for a total of 55 to 60 net new stores this year.
“United Grocery Outlet is a natural fit given our similar opportunistic buying strategies, customer value propositions and shared mission of serving our communities,” said RJ Sheedy, President and CEO of Grocery Outlet in a statement. “This acquisition provides Grocery Outlet with scale in a new region as well as a platform for future expansion in the Southeast.”
Founded 50 years ago, United Grocery Outlet creates a “treasure hunt” shopping environment for consumers while maintaining strong relationships with national and regional brands, allowing it to provide quality food at value prices.
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“We are thrilled to become part of Grocery Outlet and to have found a partner who shares our mission and business strategy,” said Lisa Bryson, CEO of United Grocery Outlet in a statement. “Together, we look forward to growing the positive impact on our community.”
