Grocery Outlet (GO) investor relations material

Business performance and consumer trends

• November saw an 8% decline in SNAP sales and a slight deceleration in non-SNAP sales, reflecting pressure on lower-income customers and increased trade-down behavior.

• Traffic remained positive, but average unit retail (AUR) dropped as customers shifted to lower-priced or smaller items to stretch budgets.

• The business is seeing stable month-to-month trends in units per transaction, but overall comps were reduced due to SNAP disruptions.

• Customers are consolidating purchases and are sensitive to transportation and fuel costs.

Store refresh and operational improvements

• A pilot Refresh program is underway, focusing on improving in-store experience, navigation, and value communication, with favorable results in pilot stores.

• Changes include co-locating produce and meat, improving merchandising, and ensuring core items are consistently in stock, leading to mid-single-digit sales increases.

• The program started with a few stores and is expanding, with plans to reach over 150 stores next year and nearly 20 by year-end.

• Operational support, training, and communication with independent operators (IOs) are emphasized to ensure changes are sustainable.

Marketing, pricing, and customer engagement

• Marketing efforts are shifting toward clearer in-store communication and external storytelling, highlighting customer savings and value.

• Price perception is being addressed through explicit basket comparisons and education for both staff and customers.

• Everyday items and national brands are being added to meet customer needs, with a focus on competitive pricing to drive larger baskets and build trust.