Grocery Outlet CEO exits; former chief returns on interim basis
A familiar face has returned to lead Grocery Holding Corp. while it seaches for a new CEO.
The extreme-value grocer said that RJ Sheedy has stepped down as president and CEO and from the company’s board of directors. Eric Lindberg, current chairman, has been appointed interim president and CEO, effective immediately. He previously served as CEO or co-CEO of Grocery Outlet from January 2006 through December 2022,
Sheedy joined Grocery Outlet in 2012 and was named president in 2019. He took the reins as CEO in January 2023, succeeding Lindberg.
No reason was given for Sheedy’s exit, but in an SEC filing, Grocery Outlet said that Sheedy’s decision to resign as a director “was not due to any disagreement with the company’s operations, policies or practices.”
“RJ [Sheedy] played a critical role in scaling and evolving our business and has set the stage for continued strong growth in the future,” said Lindberg. “The fundamentals of our business – the significant value and treasure hunt shopping experience we bring to customers – remain strong and the runway in front of us is substantial.”
The grocer said it has engaged a leading global executive search firm to begin the process of identifying a permanent CEO.
Financial update
Grocery Outlet also provided a third quarter financial update based on its preliminary financial results. It expects net sales for the third quarter to be $1.1 billion, a 10.4% increase versus the prior year period, with comparable store sales increasing 1.2%.
The company said it is in the process of reassessing its full year guidance. Although it expects to exceed the high end of the range of its full year net sales guidance of $4.30 to $4.35 billion, the company expects to reduce its full year adjusted EBITDA guidance to below the low end of the previously disclosed range of $252.0 to $260.0 million.
Based in Emeryville, Calif., Grocery Outlet is an extreme value retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. Grocery Outlet and its subsidiaries have more than 520 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia.
