Grocery Outlet CEO: Why Grocery Outlet Isn't Getting Into E-Commerce ... Yet

Author:
Publish date:
Video Duration:
0

Grocery Outlet (GO) - Get Report officially went public on Thursday. 

CEO Eric Lindberg sat down with TheStreet to talk about whether or not the company has considered going into e-commerce, since the bargain grocery store focuses on its brick-and-mortar businesses. 

So why isn't it in e-commerce currently?

"We've been asked that question on the road by literally hundreds of really smart investors and I'd say we've gotten a resounding, you guys are making the right strategy. Others before us: TJ Maxx (TJX) - Get Report , Ross (ROST) - Get Report --they also don't offer that because their fundamental belief is that people come to the store looking for a treasure hunt, looking for sort of the thrill of discovery around all the brands of the deals. we have. E-Commerce is very, very hard to replicate that online. So I would say now, it's not a strategy. Never say never. We'll see how future years come through and see if we end up in that business," explained Lindberg.

And what about Amazon (AMZN) - Get Report and its push into brick-and-mortar stores?


"I think it's going to be very difficult for Amazon to make the push into more brick and mortar locations at the discount level. I think they've got something great with Whole Foods and tying that same sort of demographic--the Whole Foods customer together with the Amazon customer--but, retail is tough and it takes a lot of years to get the store count up. We hear that they're pretty active. So, I would say we're not really worried. We're just watching what they're doing and paying close attention," said Lindberg.