Grocery Outlet (GO) 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) , Ross (ROST) --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) 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.