Grocery Outlet Returns to Positive Comparable Sales
The discount grocer reported a 50 basis point comparable sales gain in the third quarter of 2026 after refocusing on surplus inventory.
Updated on Nov. 11, 2026 in Retail
Grocery Outlet reported a return to positive comparable store sales in the third quarter of 2026, with comparable store sales increasing 50 basis points. The results were reported on its third-quarter earnings call on November 10, 2026.
Why it matters
The result follows a shift away from broad synthetic promotions toward buying surplus brand-name products at deep discounts, a strategy management says is drawing budget-conscious shoppers. Management is also slowing store openings to improve returns on capital expenditure.
Comparable store sales rose 50 basis points in the third quarter of 2026, according to company-reported earnings results. Management noted that customer traffic offset smaller basket sizes, and it did not provide a quantified basket-size change in the source data.
The players
Grocery Outlet
A discount grocery chain that sells surplus and opportunistically purchased brand-name products at reduced prices.
The details
Management phased out broad synthetic promotions and repeated a surplus-inventory buying approach in frozen and deli departments, with opportunistic mix rising materially over the quarter. Sales momentum accelerated entering the fourth quarter as customer traffic offset smaller baskets.
Timeline
Q3 2026: comparable store sales increased 50 basis points.
November 10, 2026: third-quarter 2026 earnings call held.
Q4 2026: sales momentum accelerated entering the fourth quarter.
2027: capital allocation discipline expected to guide store expansion.
Market Landscape
Grocery Outlet's shift from synthetic promotions to surplus brand-name buying reflects a discount-grocery strategy of relying on opportunistic purchasing rather than broad markdowns. The company is pairing that approach with slower store growth focused on infill sites.
Shoppers who prioritize price may find more deeply discounted surplus brand-name products in frozen and deli sections as the company expands this buying approach. Store openings are slowing, so new locations in many areas may arrive more gradually.
The takeaway
Discount grocers can sustain traffic by buying opportunistically and disciplining new store growth, a model Grocery Outlet is testing as it returns to positive comparable sales.
Further reading
Explore more retail news to see how discount grocers are adjusting their buying and store strategies.
