Grocery Outlet is an extreme value grocery retailer operating 570 small-box stores (averaging ~13,600 sq ft of selling space) across 16 U.S. states, primarily in the western U.S. The core of the model is opportunistic buying: Grocery Outlet's centralized purchasing team buys excess inventory from CPG suppliers at deep discounts — taking advantage of order cancellations, manufacturing overruns, packaging changes, and approaching sell-by dates — and passes those savings to shoppers at prices typically 40%-70% below conventional grocers. This "treasure hunt" assortment is supplemented by everyday staples and a growing private-label line to support full weekly shopping trips. Structurally, Grocery Outlet is unique in that 529 of its 570 stores are run by Independent Operators (IOs) — entrepreneurial owner-operators who hire their own staff, select merchandise from Grocery Outlet's order guide, and manage day-to-day operations in exchange for a commission equal to roughly 50% of store-level gross profit. Grocery Outlet owns the merchandise and leases the stores, while the IO model reduces fixed costs and wage exposure. Grocery Outlet targets gross margins in the 30%-30.5% range, and revenue growth is driven by new store openings and comparable store sales. The company has a long-term target of over 4,000 U.S. locations. After a disruptive ERP system conversion weighed on execution in recent years, the current strategy under new CEO Jason Potter focuses on stabilizing systems, refreshing stores, and disciplined new store growth of 30-35 net new stores in FY26.