Dive Brief:
- Grocery Outlet has named Ramesh Chikkala as its first executive vice president and chief operations officer, according to a Thursday press release. Chikkala started Monday.
- Chikkala, a former Walmart veteran, brings supply chain experience to the discount grocer.
- As COO, Chikkala is in charge of leading Grocery Outlet’s supply chain and business technology functions.
Dive Insight:
Grocery Outlet said the creation of the COO role is a key part of the company’s efforts to scale its business and add more supply chain and business technology experience.
“This position represents continued investment in our business operations, which is critical to delivering our value proposition and supporting future revenue and profit growth,” Grocery Outlet President and CEO RJ Sheedy said in a statement.
Chikkala most recently worked as a senior advisor to the management consulting firm A.T. Kearney, Inc. Previously, he was vice president and regional vice president of store operations for Family Dollar Stores and spent 14 years at Walmart, where he served as the senior vice president of the supply chain and information technology divisions.
He has also worked for Gap and Food Lion in store operations, supply chain and technology roles.
In the COO role, Chikkala reports to Sheedy.
"Ramesh is an ideal fit for this new position with his extensive leadership and operating experience in both supply chain and technology," Sheedy said. "He has deep expertise in end-to-end supply chain transformation and business digitalization.”
Grocery Outlet operates more than 400 stores across eight states. The company debuted its first Las Vegas location at the end of August. Grocery Outlet executives have said the company sees the opportunity to have more than 4,000 locations across the U.S. by expanding its stores at a rate of around 10% each year.
The discounter kicked off the new year by arriving in Kingsport, Tennessee, and reportedly has plans to open soon in Warwick, Pennsylvania, and Port Hueneme, California.
Competitor Save A Lot is looking to go from nearly 800 stores today to 3,000 during the next few years while Aldi, which has rapidly expanded its U.S. store fleet, is looking to add approximately 400 Winn-Dixie and Harveys locations in a deal with Southeastern Grocers as part of its plans to have a fleet of 2,400 stores.
Grocery Outlet recorded $1 billion in net sales in a row for its second and third quarters of fiscal year 2023.
Chikkala’s appointment marks the latest c-suite change at the grocery company. Last month, the discount grocer announced its CFO Charles Bracher plans to leave on March 1 after more than a decade in the role.
