Grocery Outlet Holding Corp (NASDAQ: GO) is a discount grocery retail company that sells name-brand consumables, fresh products, and general merchandise at prices below conventional retail through a network of independently operated stores. Revenue is generated from product sales at the store level, with gross profit shared between the company and independent operators (IOs) who run individual locations under Operator Agreements. The IO model means store-level labor and many operating costs sit with the operators rather than on Grocery Outlet's balance sheet, while the company earns on the spread between its opportunistic product sourcing and the price at which goods sell through. Net sales reached $4.69 billion in fiscal 2025 (year ended January 3, 2026), up 7.3% from $4.37 billion in fiscal 2024. The company reported a net loss of $224.9 million in fiscal 2025, driven by $113.8 million in long-lived asset impairment, $149.0 million in goodwill impairment, and $45.9 million in restructuring charges. As of January 3, 2026, the company operated stores across the western United States and, following the April 2024 acquisition of United Grocery Outlet, in six southeastern states. CEO is Jason Potter; CFO is Christopher M. Miller.

Revenue model

Transactional retail revenue from in-store product sales. Gross profit margin was 30.3% of net sales in fiscal 2025 (ended January 3, 2026). Store-level SG&A includes commissions paid to IOs, which are variable and tied to gross profit levels. The company sources opportunistic and closeout product from suppliers at below-market prices and sells through stores operated by IOs under franchise-like Operator Agreements.

Products and services

Curated, rotating assortment of name-brand and opportunistic products across grocery, produce, refrigerated and frozen foods, beer and wine, fresh meat and seafood, general merchandise, and health and beauty care. Product mix includes everyday commodity staples alongside a rotating selection of closeout and surplus goods. The company also carries NOSH (natural, organic, specialty, and healthy) products. Assortment is partly centralized and partly selected by individual IOs based on local preference.

Customers and end markets

Bargain-minded consumers seeking discounted name-brand groceries and general merchandise. No disclosed customer concentration. End demand is driven by value-seeking behavior across grocery and consumables categories.

Value-chain role

Downstream discount retailer and opportunistic product buyer. The company sources surplus, closeout, and overstock inventory from suppliers, then distributes to stores operated by IOs. Individual IOs manage day-to-day store operations, staffing, and local merchandising under Operator Agreements with Grocery Outlet. The company provides centralized marketing, ordering systems, inventory planning tools, and brand standards.

Geographic exposure

Western United States as the primary market, with expansion into southeastern states including Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia following the April 1, 2024 acquisition of United Grocery Outlet (40 stores, 39 of which were company-operated as of January 3, 2026). The company planned to open 30 to 33 net new stores in fiscal 2026, per the 10-K filed March 4, 2026.

Source: SEC 10-K, filed 2026-03-04

Industry: Retail-Grocery Stores Peers: Albertsons Companies Inc Blue Apron Holdings, Inc. Caseys General Stores Inc Ingles Markets Inc Kroger Co Natural Grocers by Vitamin Cottage Inc Sprouts Farmers Market Inc Village Super Market Inc Weis Markets Inc