Grocery Outlet Bargain Market (GOBM), the fast-growing West Coast discounter, is heading into 2023 with a winning growth strategy, according to a report released Tuesday from Placer.ai.
The foot-traffic analytics firm’s 10 Top Retail Brands to Watch in 2023 finds that despite last year’s choppy waters of inflation, 10 companies, including GOBM, are positioned to successfully navigate challenges ahead in the new year. Grocery Outlet was the only grocery retailer to make the list.
“Foot traffic to GOBM indicates just how receptive shoppers are to well-priced groceries—in Q3 2022, the chain saw 10.1% more visits and 11.8% more visitors than in Q3 2021,” Placer.ai noted. “Visits per venue were also elevated, with 4.3% more visits per venue in Q3 2022 than the same period in 2021.”
As part of its expansion plans, the extreme-value grocery retailer last month opened five new locations: 71722 29 Palms Highway in Twentynine Palms, California; 2653 N. Salisbury Blvd., in Salisbury, Maryland; 5280 Simpson Ferry Road, in Mechanicsburg, Pennsylvania; 9720 Winter Gardens Blvd. in Lakeside, California; and 1301 Quentin Rd., in Lebanon, Pennsylvania. The grocery retailer currently operates 441 locations throughout California, Idaho, Maryland, New Jersey, Nevada, Oregon, Pennsylvania and Washington.
“The company’s successful cross-country growth proves that customers are willing to look beyond a popular brand when it comes to savings at the till,” Placer.ai noted.
As inflation-stressed shoppers search for lower food prices, the Emeryville, California-based value grocer’s same-store sales surged 15.4% during the third quarter, which ended Oct. 1.
“With the brand continuing to post impressive earnings and lean into on-demand ordering, 2023 is looking bright,” Placer.ai noted.
The new year also brings leadership changes, as RJ Sheedy is now CEO following Eric Lindberg's departure on Jan. 1. Lindberg is now chairman of Grocery Outlet's board.
The report, which draws on layers of geospatial, psychographic and foot traffic data, lists Wawa, Pennsylvania-based Wawa as well, proving convenience store food is also having a moment. The East Coast chain with locations in seven states is growing as it looks to spread its wings into Ohio, Kentucky and Indiana.
“Not only has overall foot traffic to Wawa increased in recent years, average visits per venue have grown as well across all seven states,” Placer.ai noted. “Wawa venues in New Jersey, Delaware and D.C., saw the largest increases, with 48.0%, 42.2% and 50.1% more visits, on average, than in 2019, while the remaining states all saw average visits per venue growth between 34.3% and 41.2%.”