Grocery Outlet's New Private Label Assortment Launching In Q3

Grocery Outlet’s new private label program will hit stores in the third quarter with initial items in the assortment focused on the beverage and grocery categories.

In development for the past year, company officials said the initial products will be followed by additional items in the two categories along with store brand selections in the dairy, household, and baking categories.

“In addition to better value and inventory consistency for our customers, these initial products will deliver better margin for Grocery Outlet and IOs (independent operators),” RJ Sheedy, president and CEO of Grocery Outlet, said during a recent investor conference call. “We remain on track to introduce approximately 100 new private-label SKUs by the end of the year.”

He said the new private label assortment will enhance the grocer’s everyday assortment by offering products that provide better value for shoppers while also carrying products with improved margins.

Additionally, the forthcoming private label assortment will provide points of differentiation, a growing topic among retailers when they develop new private label assortments. 

“These items will all be unique to us, but many of them will be more unique items, whether in the nosh space, different formulations, or new adds to the shop that creates another reason for customers to shop our stores beyond just the value that they provide,” Sheedy said.

Grocery Outlet will also use its new private label product line to enhance the treasure hunt aspect of its stores. The new assortment will include commodity-based products that will be in stock regularly and carry other products on a seasonal basis. 

“We look forward to having the treasure hunt element be a part of the assortment where we are pulsing in and out items that create newness and excitement,” Sheedy said.