60 New Grocery Outlet Stores Planned for 2024
Image Credit - Grocery Outlet, Instagram
11 March, 2024

60 New Grocery Outlet Stores Planned for 2024

The discount grocery chain Grocery Outlet has big expansion plans for 2024. After buying United Grocery Outlet and its 40 stores in the Southeast U.S., the company says it will open up to 60 new stores next year.

This growth builds on Grocery Outlet's killer 2023 performance. Last year, the retailer grew its sales to a record $4 billion across its 468 stores in nine states. Sales at long-standing stores increased 2.7%, driven by more customer visits.

However, launching new technology briefly disrupted operations and sales late in 2023. Despite this short challenge, Grocery Outlet's low prices continue attracting bargain shoppers. As CEO RJ Sheedy put it, "Our value proposition continues to resonate with consumers, resulting in strong traffic and transaction count growth."

In 2024, the United Grocery Outlet purchase allows Grocery Outlet to march into six new states: Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. The $1.1 billion deal is expected to wrap up in early Q2 2024.

Beyond this, Sheedy says they'll also open 15-20 brand spanking new stores themselves in 2024. The company is projecting total sales between $4.3-4.35 billion, a 3-4% bump at existing stores, and a nifty 31.3% profit margin for the year.