Grocery Outlet

Investment Considerations
Proven Long Term Location
Grocery Outlet has been at this location since 1978 and continues to reinvest money into store
upgrades. A new roof was replaced in 2006 and interior and exterior remodeling occurred in
2007, along with an enclosure of the south side loading dock platform. Store sales at this
location are strong and have remained consistent year after year. The Property is located
within an established area with blue collar demographics perfectly suited for Grocery Outlet.
There are in excess of 100,000 people within a 3 mile radius, increasing to 208,000 within a
5 mile radius and $55,000 to 59,000 average household incomes respectively.
Established Area with Ongoing Rejuvenation
The Property sits in proximity to the established Grant Neighborhood which is the north
gateway to Oregon’s Capitol Mall and downtown. Nearly all of the homes and buildings date
between about 1900 and 1940. The neighborhood boasts about 150 businesses, six churches,
numerous historic buildings, and about 1,275 households. Truitt Brothers, the largest employer
in the area, is located directly across Front Street from Grocery Outlet and has proven to be a
profitable neighbor to the only grocery store in the area.
Recently 48 units of affordable housing were opened at the new YMCA building located
just blocks from Grocery Outlet, increasing their local client base. Also, situated just north,
Willamette Landing is a largely-senior living complex with nearly 100 units and nearly 100%
occupancy.
The Property has western frontage on Commercial Street NE, the major north/south thoroughfare
into Downtown Salem, with strong traffic counts of approximately 36,300 vehicles per day.
Grocery Outlet is also the only discount type store in the immediate submarket.
Under Served Grocery Market
Grocery Outlet is the only grocery store directly servicing the Grant neighborhood. The closest
grocery store is Safeway which is Southeast of Grocery Outlet and serving a different market.
Fred Meyer to the North is approximately 2 miles away and serves the Keizer market, an
entirely different submarket.
Excellent Credit Tenant
Grocery Outlet Inc. currently operates in excess of 145 locations in 6 Western States (OR, WA,
CA, AZ, ID, NV). Founded in 1946, this privately held, “extreme-value” retailer continues to grow
strategically, especially in the Pacific Northwest, and is now recognized as the nations leading
value grocery chain.
Grocery Outlet is based in Berkeley, California and employs over 100 staff in their corporate
offices. On November 2, 2009 Berkshire Partners acquired majority interest in GOI. This new
partnership with Berkshire Partners positions Grocery Outlet for continued growth.
Berkshire Partners is a leading private equity firm with a 25-year track record of success
of investing in mid-sized private companies through seven private equity funds with $6.5
billion of committed capital. They have a strong track record of successfully partnering with
management teams, working together to grow their companies. Grocery Outlet will benefit in
this partnership from their knowledge gained from working with over 100 portfolio companies
with an aggregate investment value of $20 billion and revenues of $22 billion.
Recession-Proof Retail Concept
As the leader in extreme-value grocery items, the Grocery Outlet business model is considered
an almost “recession-proof” retail concept, catering to low, middle and high income consumers
seeking discount rates on brand name products.
Grocery Outlet offers brand name products at 40% to 60% below traditional retailers. They
offer a full selection of groceries, along with a variety of housewares, toys and health and
beauty products.
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