Extreme-value grocer looks to go public

3/27/2019
Grocery Outlet Holding Corp. is poised to make an initial public offering.

The discount grocery chain filed a draft registration statement with the Securities and Exchange Commission for a proposed IPO of common stock. The offering, to be made as Grocery Outlet Holding Corp., is slated to begin after the SEC review process, depending on market conditions and other factors.

Based in Emeryville, Calif., Grocery Outlet has more than 300 locations in California, Idaho, Nevada, Oregon, Pennsylvania and Washington, with the stores run by independent owner-operators. The company bills itself as the nation’s largest extreme-value grocery retailer, attracting more than 1.5 million shoppers weekly.

The average footprint of a Grocery Outlet is about 20,000 sq. ft. Stores offers savings of 40% to 70% off brand-name goods, with the savings achieved through a sourcing model that includes purchasing excess inventory and product overruns directly from suppliers.

Grocery Outlet is majority-owned by private-equity firm Hellman & Friedman, and managed by the family of the founder, Jim Read, who opened the first store in San Francisco in 1946.
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