Grocery Outlet Holding Corp. (NASDAQ: GO)

Grocery Outlet Holding Corp. operates as an extreme value retailer, offering quality, name-brand consumables and fresh products through a network of independently operated stores. The company is a key player in the discount grocery sector, focusing on providing significant savings to bargain-minded shoppers. As of January 3, 2026, Grocery Outlet Holding Corp. had 570 stores spread across 17 states, with its headquarters in Emeryville, California. The company's business model is centered around a treasure hunt shopping experience, where customers can find ever-changing "WOW!" deals alongside everyday staple products.

Grocery Outlet Holding Corp. generates revenue through the sale of a curated assortment of products, including on-trend, quality, name-brand consumables and fresh products. The company's product offering includes opportunistic products, complemented by an assortment of competitively priced everyday staples across various categories such as grocery, produce, refrigerated and frozen foods, beer and wine, fresh meat and seafood, general merchandise, and health and beauty care. The company has also introduced private label products, with approximately 485 private-label SKUs across various categories. The typical Grocery Outlet basket is priced approximately 40% lower than conventional grocers and approximately 20% lower than discount retailers. The company's customer base is broad, appealing to bargain-minded consumers across various income levels, demographics, and geographies.

• Grocery Outlet Bargain Market: This segment represents the core business of Grocery Outlet Holding Corp., with 529 stores operated by independent operators (IOs) as of January 3, 2026. The stores offer a treasure hunt shopping experience with a curated assortment of products, including opportunistic "WOW!" deals and everyday staple products. The segment caters to bargain-minded consumers seeking significant savings on quality, name-brand consumables and fresh products.

• United Grocery Outlet: Acquired on April 1, 2024, United Grocery Outlet (UGO) added 40 stores in six adjacent states where Grocery Outlet Holding Corp. did not previously operate. These stores are company-operated and include a distribution center. The segment caters to the same bargain-minded consumer base, offering the same value proposition as the Grocery Outlet Bargain Market stores.

Grocery Outlet Holding Corp. operates in a competitive industry, facing competition from a diverse group of retailers, including mass, discount, conventional grocery, department, drug, convenience, hardware, variety, online, and other specialty stores. Key competitors include Walmart, Safeway, Costco, WinCo, Target, Trader Joe's, Aldi, and Lidl. The company's competitive advantages lie in its unique buying and selling model, which allows it to offer quality, name-brand products at significant discounts. The company's flexible sourcing and supply chain model, along with its centralized purchasing team, enables it to acquire merchandise at substantial discounts. Additionally, the company's independent operator model reduces fixed costs and corporate overhead, providing further protection in economic downturns and growth opportunities in strong economies.

The company's customer base is broad, appealing to bargain-minded consumers across various income levels, demographics, and geographies. The stores are conveniently located and offer a high level of customer service without membership fees or bulk purchase requirements. The company's ability to consistently deliver "WOW!" deals generates customer excitement and loyalty, driving repeat visits and supporting profitable sales growth. Grocery Outlet Holding Corp.'s value proposition has broad appeal, and the company continues to expand its reach to additional customers and geographies.