Grocery Outlet's same-store sales surged 15.4% during the third quarter as inflation-stressed shoppers searched for lower food prices, the fast-growing West Coast discounter reported Tuesday.
For the quarter ended Oct. 1, Grocery Outlet's net sales jumped 19.4%, to $918.2 million. Higher prices coupled with higher traffic drove the same-store sales growth, which increased 20.2% on a three-year, stacked basis.
Net income grew 2.1%, to $17.5 million, Grocery Outlet reported.
The company, which opened six new stores during the third quarter, now operates 431 stores in eight states.
“I’m extremely pleased with the results we delivered and the continued momentum in our business, especially the uptick in transaction count,” Eric Lindberg, CEO of Grocery Outlet, said on the earnings call.
Lindberg, in an announcement Tuesday, said he will leave his CEO post on Jan. 1 after 17 years with the Emeryville, California-based Grocery Outlet. Current President RJ Sheedy will take over CEO at the retailer.
Lindberg will become chairman of Grocery Outlet's board and Sheedy will also be appointed to the board, the company said. Erik D. Ragatz, currently chairman of the board, will assume the role of lead independent director.
As a result of the discount grocer’s strong third quarter, the company raised its full-year guidance calling for sales above the previous estimate between $3.46 billion and $3.48 billion.
“In terms of unit growth, we expect to open 10 new stores in the fourth quarter and 26 net new stores for the year. Based on our comp sales and new store expectations, we are raising our fiscal 2022 sales guidance to approximately $3.55 billion,” said Charles Bracher, CFO of Grocery Outlet, during the earnings call.