Former CEO Eric Lindberg will return to lead Grocery Outlet Holding Corp. as interim president and CEO after RJ Sheedy stepped down and resigned from the board of directors. The announcement was made Oct. 30.
Lindberg is chairman of the board, which has engaged a global executive search firm to begin the process of identifying a permanent CEO.
With more than three decades of leadership experience at the company, Lindberg is a Grocery Outlet veteran with a deep knowledge of its operations and strategy. He previously served as CEO or co-CEO from January 2006 through December 2022. During that time, he led Grocery Outlet’s transformation from a closely held family-owned business to a sponsor-backed private company, taking on significant outside capital from Berkshire Partners and Hellman & Friedman, and then ultimately to a publicly traded company in 2019.
Under Lindberg, Grocery Outlet increased its store count more than 250 percent and its net sales nearly 500 percent, expanding to markets across the country. He has served as a director since January 2006 and has chaired the board since January 2023.
“On behalf of the board, I want to express my deep appreciation to RJ for his contributions to Grocery Outlet over the past 12 years,” said Lindberg. “RJ played a critical role in scaling and evolving our business and has set the stage for continued strong growth in the future.
“The fundamentals of our business – the significant value and treasure hunt shopping experience we bring to customers – remain strong and the runway in front of us is substantial,” continued Lindberg. “I look forward to working with our employees, independent operators and supplier partners to deliver outstanding execution on our strategy and unlock Grocery Outlet’s earnings potential.”
Financial update
In connection with the announcement, the company provided a third quarter financial update based on its preliminary financial results. It expects net sales for the third quarter to be $1.1 billion, a 10.4 percent increase versus the prior year period, with comparable store sales increasing 1.2 percent. It expects to meet previously discussed third quarter earnings guidance.
Grocery Outlet Holding Corp. also is in the process of reassessing its full year guidance. Although it expects to exceed the high end of the range of its full year net sales guidance of $4.3-$4.35 billion, the company expects to reduce its full year adjusted EBITDA guidance to below the low end of the previously disclosed range of $252-$260 million. The company will update full year guidance, along with issuing final third quarter 2024 earnings results, on Nov. 5.
About Grocery Outlet
Based in Emeryville, California, Grocery Outlet is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. Grocery Outlet and its subsidiaries have more than 520 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia.
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