Grocery Outlet acquires United Grocery Outlet

[marketreportblog]

Grocery Outlet has acquired 40 United Grocery Outlet stores in the southeast: https://storebrands.com/grocery-outlet- ... ery-outlet

[pseudo3d]

Seems like they were operating as "Grocery Outlet" in some of their stores.

I wonder if this was the outcome of potential litigation.

[BillyGr]

Seems like they were operating as "Grocery Outlet" in some of their stores.

I wonder if this was the outcome of potential litigation.

Though looking at the story, this company has been around 50 years, so it might even pre-date the one buying it out (if not nationally, certainly on this side of the US, since the more known chain is fairly recent to the eastern US).

May just be that they found it an easy way to expand (since we just saw that they are interested in a larger presence in the eastern part of the country), more than anything else.

[storewanderer]

This is a significantly lower class operator than Grocery Outlet. They do not have nearly the product mix, store standards, or sophistication in merchandising or marketing of Grocery Outlet.

It will be interesting to watch the integration.

I had no clue this United Grocery Outlet was even a chain. I've been into a couple of their stores, when I went, which wasn't that long ago, they were not scanning, everything was still hand priced. No employee uniforms. They were like a salvage store.

I also look forward to seeing parts of the buying stream of this United Grocery Outlet flow into the main Grocery Outlet. Hopefully it will enhance their mix by giving them more opportunities to tap suppliers in that chain's regions.

[pseudo3d]

This is a significantly lower class operator than Grocery Outlet. They do not have nearly the product mix, store standards, or sophistication in merchandising or marketing of Grocery Outlet.

You should have seen Grocery Outlet's operation in Texas (Grocery Outlet Bargains Only). Basically, they took over Yes!Less, an extreme discounter that Fleming (just before bankruptcy) operated in the rattiest, smallest stores they could find. The ones I know of were in an old Kmart Foods spot and another strip center where an H-E-B moved out in 1991 after several decades. So we're talking like 25k-30k square foot stores, and all of them were dumps. They didn't even last nine months!