Grocery Outlet Holding Exploring Options for E-Commerce Partners
August 10, 2021
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Grocery Outlet Holding Corp. (NasdaqGS:GO) has begun exploring options for e-commerce partners. Discussions with potential third-party online grocery providers are under way, and Grocery Outlet expects to be piloting one or more solutions within months, Chief Executive Officer Eric Lindberg said on August 10, 2021 reporting fiscal 2021 second-quarter results. “We firmly believe our stores represent the most important growth driver, but we're also exploring complementary ways to reach new customers and deliver value," Lindberg told analysts in a post-market-close conference call on Tuesday. “Higher demand for grocery e-commerce now provides an interesting opportunity for us to extend our industry-leading value and ‘treasure hunt’ experience. We are excited to begin testing various e-commerce approaches to determine what works best with our unique model". “We plan to begin a test-and-learn approach to evaluate various e-commerce solutions such as delivery and buy online, pickup in store [BOPUS]," Sheedy said in the call. “These tests will assess several factors, such as alignment with our unique model, operational and technical considerations and total market opportunity. We are currently in discussions with potential third-party partners, and we look forward to updating you as these tests launch and progress". “Delivery, BOPUS, we want to explore both," he explained. “The adoption for both of those has increased, so we think they’re potentially interesting opportunities or approaches for us. Both of those are in scope of as we’re thinking about a test. Treasure hunt, that’s part of the test also. How well does that translate online? As items are in and out [of stores], does that come across? Do customers see the excitement online as they would walking up and down the aisles of the store? “We’ll get a better read on that once we get out there and market".
Grocery Outlet Holding Corp. is a retailer of name-brand consumables and fresh products sold through a network of independently operated stores. The Company operates over 470 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, New Jersey and Ohio. Its product offering includes staples, across grocery, refrigerated and frozen foods, beer and wine, fresh meat and seafood, and health and beauty care, others. It distributes inventory through eight primary distribution centers, three of which it operates and five of which are operated by third parties. It has an in-house transportation fleet, as well as transportation partner relationships. It also owns United Grocery Outlet, a closeout grocery retailer with over 40 stores in Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. It is focused on centralized marketing efforts primarily on digital ads, emailed WOW! Alerts, social media and radio commercials, and in-store and outdoor signage.