The company is set to expand its reach as it targets the opening of between 15 and 20 new stores across the year.
The extreme discount grocer opened 13 new stores during its fourth quarter, including its first location in Ohio, for a total of 468 stores in nine states. It plans to open 15 to 20 new stores in 2024.
“Our real estate pipeline is healthy, with approved sites for 2025 in good position to deliver our 10 per cent annual growth goal,” CEO RJ Sheedy said during the company’s earnings call, adding that the company currently has over 100 approved sites for 2025 and 2026 combined.
In addition, Grocery Outlet is set to expand its footprint with the acquisition of closeout retailer United Grocery Outlet, which operates 40 stores in the Southeast. The acquisition, expected to close at the beginning of the second quarter of fiscal 2024, will expand Grocery Outlet’s presence into several new states: Tennessee, North Carolina, Georgia, Alabama, Kentucky and Virginia.
The deal also includes a distribution centre, which can support additional new store growth in the broader Southeast region, Sheedy noted. “This is an exciting addition as we pursue our white-space opportunity of over 4,000 stores across the US,” Sheedy told analysts.
