Grocery Outlet, a self-described ‘extreme-value’ grocery retailer, plans to begin expanding in Southern California this month. The company announced in September the planned opening of 14 stores in the Los Angeles market, with a long-term goal of up to 30 new stores over the next several years. In addition, a judge recently approved the sale of six Fresh & Easy locations in Orange, Rosemead, Long Beach, Downey, Whittier and Sunnyvale to Grocery Outlet.

Grocery Outlet saw an opportunity with Fresh & Easy’s exit from the LA market. According to Chain Store Guide market share data, it operated 59 stores there at the beginning of 2015. Both retailers shared a relatively similar size format, and are smaller than most traditional supermarkets – Grocery Outlet stores average 18,000 square feet, while the now defunct Fresh & Easy were generally between 10,000-15,000 square feet.

The Los Angeles market is extremely diverse and one of the most competitive in the country, with large presences from many national chains including Kroger, Costco, and Trader Joe’s.

LOS ANGELES-LONG BEACH-ANAHEIM, CA CBSA
Counties included: LOS ANGELES, ORANGE – CA

*Source: Chain Store Guide’s 2015 Grocery Industry Market Share Report. Data represents fiscal 2014 figures.