‘Extreme Value’ Discounter Grocery Outlet Plans 25-Store Expansion

You don't hear any complaints about food deserts in the parking lots of Grocery Outlet stores. Originally a reseller of surplus military rations, Grocery Outlet is currently a chain of 270 privately owned supermarkets in five western states plus Pennsylvania.

Founded by James Read in 1946 as Cannery Sales, and still managed today by the same family, the company has been owned since 2014 by a private equity fund, Hellman & Friedman.

It's what's known in the industry as an "extreme value" retailer. Grocery Outlet buys excess inventory (discounted, overstock, closeout) from reputable, national consumer package goods companies (Kellogg’s, General Mills, Oscar Mayer, Kraft, etc.) and passes the often-substantial savings along to its customers.

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