Grocery Outlet Holding Corp. announced that Steve Wilson, Executive Vice President and Chief Purchasing Officer, will retire effective March 20, 2026, concluding a 31-year tenure during which he built a buying team of over 25 professionals and negotiated relationships with more than 1,200 suppliers. Under Wilson’s leadership, Grocery Outlet grew its private-label and overstock purchasing volume by an average of 12% annually since 2015, helping expand gross margins by roughly 150 basis points over the past five years. The Company has initiated a structured transition plan, with Wilson slated to work closely with the board and executive team through the spring to ensure continuity of supply chain operations and to preserve existing supplier contracts valued at approximately $1.1 billion per year.

Industry veteran Matt Delly, who joined Grocery Outlet last year as Chief Merchandising Officer, will assume the newly created role of Chief Merchandising and Purchasing Officer on March 20. The consolidation of purchasing and merchandising under Delly’s leadership is designed to streamline decision-making and reduce time-to-shelf by integrating assortments, inventory forecasting and promotional planning. Management projects this structural change could yield annualized cost savings of $8 million to $12 million by 2027, while improving inventory turns by 5% and reducing out-of-stock rates to below 2% company-wide.

On February 12, Grocery Outlet will open its first store in Falls Church, Virginia, representing the Company’s entrance into its 16th state market. The new location spans 23,500 square feet and will offer shoppers name-brand consumables and fresh products at prices 40% to 70% below conventional retail levels. Management expects the Virginia store to generate annual revenue of $18 million to $20 million in its first full year, contributing to the Company’s goal of opening 20 to 25 new stores annually and growing total store count past 600 by the end of 2027. The expansion is positioned to target underserved suburban and urban neighborhoods, with a pipeline of five additional Virginia sites secured through long-term lease agreements.

The leadership transition and geographic expansion milestones underscore Grocery Outlet’s focus on scalable growth and operational excellence. By integrating merchandising and purchasing functions, the Company aims to enhance gross margin leverage and support a network of more than 560 independent store operators. Simultaneously, the Virginia launch diversifies regional revenue streams and taps underserved markets, which historically have delivered same-store sales increases of 4% to 6% within the first 12 months of opening. Investors should monitor execution on integration targets, new store productivity metrics and supplier cost trends as key indicators of future cash flow and margin expansion.