Grocery Outlet Eyes Oregon

John Wylie, VP of marketing for Grocery Outlet, says the value groceryoperator will open the two new stores in April. In addition, the Grocery Outlet stores inMilwaukie and Klamath Falls are moving to new locations in early summer,according to Wylie, who says each of the new units will be run by GroceryOutlet independent operators who have experience in other stores within thenetwork.

Grocery Outlet describes itself as an extreme value operation, comparing itself to dollar stores, Big! Lots and 99 Cents Only, which "are stocking a larger assortment of non-perishable items that were once profit centers for supermarkets," Grocery Outlet says. However, the chain bills itself as "the most complete shopping experience" in the extreme value segment by delivering comparable discounts on groceries as well as non perishable items. Its strategy is to work with about 2,500 manufacturers to find the best deals on products ranging from frozen and refrigerated foods, to dry groceries, beer and wine, health and beauty care, over-the-counter drugs and general merchandise.

The Oregon stores are part of the company's chain of 118 locations in the US, including stores in Arizona, California, Hawaii, Idaho, Nevada, Oregon and Washington. The privately held company, which reached $500 million in sales in 2002, grew out of a business established by the late Jim Read in San Francisco during the mid-1940s. The original concept was to buy warehouse overstocks and sell them at huge discounts, which has since evolved from the close-out business to the current format.