Grocery Outlet Launches Private Label Program, GO Brands

Rhea-AI Summary

Grocery Outlet Holding Corp. (NASDAQ: GO) has launched its new private label program, GO Brands. The program features three brands: SimplyGO, GO Home & Haven, and GO Paw & Pamper. 100 new private label SKUs will be available in stores by the end of 2024 under SimplyGO and GO Home & Haven, with GO Paw & Pamper arriving in 2025.

SimplyGO offers affordable grocery and beverage basics, GO Home & Haven provides household essentials and personal care items, while GO Paw & Pamper will focus on pet food and accessories. The company aims to deliver high-quality products at unbeatable values, complementing their existing assortment of name-brand products and enhancing the treasure hunt shopping experience for customers.

Positive

• Launch of private label program GO Brands, potentially increasing profit margins
• 100 new private label SKUs available by end of 2024, expanding product offerings
• Diversification into three distinct brand categories: grocery, household, and pet products

Negative

• None.

Insights

Financial Analyst

The launch of Grocery Outlet's private label program, GO Brands, is a strategic move to enhance profit margins and customer loyalty. Private labels typically offer higher profit margins than national brands, potentially boosting Grocery Outlet's bottom line. With 100 SKUs planned by year-end, this initiative could significantly impact revenue. However, the success depends on customer acceptance and the ability to maintain quality while offering lower prices. The phased rollout approach allows for adjustments based on initial performance. Investors should monitor the program's impact on sales and margins in upcoming quarterly reports to gauge its effectiveness in driving growth and profitability.

Market Research Analyst

Grocery Outlet's introduction of GO Brands aligns with current consumer trends favoring value and private labels. The three-brand strategy (SimplyGO, GO Home & Haven, GO Paw & Pamper) targets diverse consumer needs, potentially increasing basket size and shopping frequency. This move could strengthen Grocery Outlet's competitive position against discount retailers and traditional supermarkets. The treasure hunt experience mentioned by Steve Wilson is a key differentiator in retail and adding private labels to this mix could enhance customer engagement. However, success will hinge on maintaining product quality and effectively communicating value to price-sensitive consumers in an inflationary environment.

Retail Industry Expert

Grocery Outlet's private label launch is a calculated risk in the competitive grocery landscape. While it offers potential for increased margins and customer loyalty, it also requires significant investment in product development, quality control and marketing. The company must balance its 'extreme value' positioning with the introduction of these new brands to avoid confusing its core customer base. The phased introduction of brands (SimplyGO and GO Home & Haven this year, GO Paw & Pamper next year) allows for operational adjustments and customer feedback integration. This move could help Grocery Outlet capture a larger share of customer spend, but success will depend on execution and maintaining the delicate balance between national brands and private labels in their unique 'treasure hunt' model.

100 private label SKUs available in stores by the end of this year

EMERYVILLE, Calif., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) (“Grocery Outlet” or the “Company”), a high-growth, extreme value retailer of quality, name-brand consumables and fresh products, announced today the official launch of its new private label program, GO Brands.

GO Brands will feature products across three brands: SimplyGO, GO Home & Haven, and GO Paw & Pamper. The products will roll out across Grocery Outlet stores beginning this month, with 100 new private label SKUs available in stores by the end of the year under the SimplyGO and GO Home & Haven brands. GO Paw & Pamper will arrive in stores next year.

“At Grocery Outlet we are committed to our mission of Touching Lives for the Better by saving our customers money and providing quality products at unbeatable values,” RJ Sheedy, President and CEO of Grocery Outlet, said. “We designed the GO Brands program to deliver on that promise. Each brand has its own unique identity, while maintaining the reliable quality and incredible value our shoppers rely on us for every day.”

• SimplyGO – High-quality grocery to beverage basics at affordable prices to help stretch grocery budgets. Products include pastas and baking essentials, as well as dairy products, including butter, cheese and whipped toppings.

• GO Home & Haven – Everyday household essentials and personal care items at exceptionally affordable prices. Products include paper towels, aluminum foil, parchment paper and facial tissues.
  
• GO Paw & Pamper – The company’s pet brand, featuring pet food and accessories.
  

“Shoppers today have high expectations of any private label brand they purchase, and many choose their favorite grocery store based on that exclusive offering,” said Steve Wilson, EVP, Chief Purchasing Officer. “Our GO Brands items are the perfect complement to our existing extreme value assortment of quality name brands, creating an even richer treasure hunt shopping experience.”

About Grocery Outlet
Based in Emeryville, California, Grocery Outlet is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. Grocery Outlet and its subsidiaries have more than 520 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia.

Investor Relations Contact:
Christine Chen
(510) 877-3192
cchen@cfgo.com

Media Contact:
Alejandro Alvarez Correa
(510) 346-5532
aalvarezcorrea@cfgo.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c08827c5-92c8-42e0-b7d3-3d4806240b56

FAQ

What are the three brands in Grocery Outlet's new private label program GO?

Grocery Outlet's new private label program GO Brands features three brands: SimplyGO for grocery and beverage basics, GO Home & Haven for household essentials and personal care items, and GO Paw & Pamper for pet food and accessories.

How many new private label SKUs will Grocery Outlet (GO) introduce by the end of 2024?

Grocery Outlet (GO) plans to introduce 100 new private label SKUs under the SimplyGO and GO Home & Haven brands by the end of 2024.

When will Grocery Outlet's GO Paw & Pamper brand be available in stores?

Grocery Outlet's GO Paw & Pamper brand, focusing on pet food and accessories, will be available in stores starting in 2025.

What types of products will be offered under Grocery Outlet's SimplyGO brand?

Grocery Outlet's SimplyGO brand will offer high-quality grocery and beverage basics at affordable prices, including pastas, baking essentials, and dairy products such as butter, cheese, and whipped toppings.