Grocery Outlet Inc. Acquires 17 Discount Stores

BERKELEY, CA-Grocery Outlet Inc. has acquired the leaseholds for 17 discount grocery outlets previously operated by Lewisville, Texas-based Fleming Companies Inc., a publicly traded company that filed Ch. 11 bankruptcy in April.

Berkeley-based Grocery Outlet already operates 188 locations mostly in Washington, Oregon and California. Sixteen of the 17 new properties are located in Texas and the remaining location is in Louisiana. It is the largest one-time expansion in the company’s history.

Grocery Outlet VP John Wylie tells GlobeSt.com the leaseholds were acquired because they are about the same size as its existing locations, appeal to the same audience and will allow the re-marketer to take advantage of more closeout and overstock bargains in the Midwest and on the East Coast that previously would have been too expensive to distribute to its West Coast stores.