Dive Brief:
- Grocery Outlet announced Wednesday it has named Jason Potter, CEO of The Fresh Market, as its president and CEO, effective Feb. 3.
- Potter steps into the roles following the sudden departure of RJ Sheedy in October. Eric J. Lindberg, Jr., the board’s chairman and a former CEO of the company, filled the roles on an interim basis during the executive search and will continue to serve on the board after Potter’s arrival.
- Grocery Outlet said Potter brings more than 30 years of industry experience to the role, including overseeing the transformation of The Fresh Market.
Dive Insight:
Potter brings decades of executive leadership, including nearly five years of experience leading The Fresh Market, to Grocery Outlet as the discounter looks to regain its footing after a botched technology transition from a year and a half ago.
While at The Fresh Market, Potter oversaw numerous customer experience initiatives and strong earnings growth, Grocery Outlet said in the announcement. The specialty grocer also rolled out several tech initiatives such as electronic shelf labels and expanded its store fleet into new and existing markets during Potter’s time there.
Prior to The Fresh Market, Potter spent 26 years with Sobeys, where he oversaw 1,500 stores under several banners with more than $12 billion in revenues. At Sobeys, he served in a variety of operational and leadership roles, including president of the Sobeys West, Sobeys Atlantic and multi-format operations divisions.
“Grocery Outlet is a differentiated concept with a tremendous growth opportunity,” Potter said in a statement.
At Grocery Outlet, Potter will receive an annual base salary of just over $1 million and be eligible for an annual incentive bonus and equity grants, according to a company filing with the Securities and Exchange Commission.
Lindberg will work closely with Potter over a transition period, which will include meeting independent operators and key suppliers as well as integrating him into the discounter’s culture, the announcement noted.
“In addition to his deep experience in growing and scaling successful grocery models, Jason’s vision, values and hands-on leadership style align well with our goals and culture,” Lindberg said. “His passion and drive will prove to be an excellent fit here at Grocery Outlet.”
Following strong sales growth early in the pandemic, Grocery Outlet has seen its financials ebb and flow over the last four years.
During its most recent quarter, the discounter’s net sales increased 10.4% as it eclipsed more than $1 billion in sales for the third consecutive quarter. But its net income decreased nearly 11%, marking the fourth consecutive quarter of that metric declining. The company’s total debt at the end of its third quarter was $429 million — nearly 46% higher than the same period a year ago.
Grocery Outlet’s stock price, currently just above $15, has sagged 39% over the last year.
Based in Emeryville, California, Grocery Outlet runs more than 520 stores across 16 states. The discounter launched its new private label line last year and expanded its store fleet.
Along with the chief executive changes, Grocery Outlet also recently welcomed a new CFO. Christopher Miller, who previously worked for Shamrock Foods Company, stepped into the top finance role on Jan. 6, taking over the position from interim CFO Lindsay Gray, who filled after Charles Bracher’s departure last March.
