Grocery Outlet searching Albany region for sites to break into local market (New York: sales)

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Is anyone on here familiar with this grocery chain?

From the article: "Grocery Outlet, a fast-growing discount chain based in the San Francisco area that has more than 460 stores in nine states, is searching for sites in the Albany region and elsewhere in New York.

Local commercial real estate brokers who are working with the company describe its pricing, products and overall vibe as a combination of Aldi and Trader Joe's.

Aldi is a no-frills discount chain. Trader Joe's, also a discounter, has unique, company-branded products. Both have loyal shoppers in the region.

Grocery Outlet (Nasdaq: GO) calls itself as an "extreme value retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores."

The average store size is 14,000 square feet, with prices 40% to 70% below conventional retailers on its best deals, according to the company's real estate marketing.

Ann MacAffer, associate broker at CBRE-Albany, said Grocery Outlet representatives recently toured the area looking at potential sites. They're interested in existing buildings between 12,000 square feet and 20,000 square feet.

"They're looking all over," MacAffer said. "I went up to Johnstown, Gloversville, Amsterdam, as well as Wolf Road and Latham and Clifton Park. They're looking for a density of people. They want to be not too far from other grocery stores."

"They want to be with an out-facing door," she added. "They probably won't go in a mall."

The store sizes are significantly smaller than the buildings that were just vacated by ShopRite in Albany, Colonie, North Greenbush, Slingerlands and Niskayuna.

Schenectady-based Market 32/Price Chopper bought the store leases under a deal that was finalized in November with ShopRite owner Wakefern Food Corp. of New Jersey.

The former ShopRite stores in Niskayuna and North Greenbush will be converted into the Market 32 brand. The Slingerlands location will be marketed for sublease. The plans for the other two sites have yet to be announced.

Grocery Outlet is heavily concentrated on the West Coast, with nearly 260 stores in California alone, but it has 28 stores in Pennsylvania and opened its first in Ohio in November.

Net sales increased 9.3%, to $1 billion, and comparable-store sales increased 6.4% in the fiscal third quarter, which ended Sept. 30. Fourth-quarter and annual results will be released Feb. 27.

MacAffer recently started representing Grocery Outlet in its regional search on behalf of CBRE Upstate NY, but the grocer initially worked with Ken Brownell of Vanguard-Fine LLC through its previous national broker, Newmark.

As part of the switch to CBRE, Brownell is continuing to handle potential deals he was pursuing for Grocery Outlet.

"They are 100% looking at the Albany market," Brownell said. "It probably won't be until 2025-26 in terms of having any stores open."

Brownell visited the Grocery Outlet stores with his wife a couple of years ago while on a trip to California.

"The stores are beautiful," he said. "The way they operate, they have a local operator. He's more than a general manager. It's like an owner/operator and takes full responsibility."

Source: https://www.bizjournals.com/albany/n...ate=2024-02-13

Here is the company website: https://www.groceryoutlet.com/