Steve Wilson, Grocery Outlet Holding Corp.’s Executive Vice President and Chief Purchasing Officer, will retire effective March 20, 2026, after 31 years of service. Wilson’s departure ends a long‑standing leadership role that has been central to the company’s extreme‑value sourcing model. In the same announcement, the company named Matt Delly, who joined as Chief Merchandising Officer in 2025, to assume the combined responsibilities of Chief Merchandising and Purchasing Officer, creating a single executive to oversee both buying and merchandising functions.
Wilson built the buying team that secured deep discounts on name‑brand products and forged long‑term relationships with suppliers, enabling Grocery Outlet to offer high‑quality goods at prices that undercut traditional grocers. His stewardship helped the company maintain a lean inventory cycle and a flexible supply chain that is critical to its “opportunistic purchasing” strategy. Delly’s promotion signals a shift toward tighter integration of procurement and merchandising, a move designed to streamline decision‑making, reduce duplication, and accelerate the execution of the company’s independent operator model.
The integration comes at a time when Grocery Outlet is still recovering from disruptions caused by its SAP ERP implementation, which began in August 2023. The ERP issues have pressured gross margins and complicated inventory management. By consolidating purchasing and merchandising under Delly, the company aims to improve supplier negotiations, reduce operational friction, and support margin improvement as it works to restore full ERP functionality by the end of 2025.
Financially, Grocery Outlet reported a gross margin of 30.4% in Q1 FY2025, up 110 basis points from 29.5% in Q4 FY2024 and 30.2% in Q4 FY2023. Net sales rose 8.5% to $1.13 billion in Q1 FY2025, compared with a 10.9% increase to $1.10 billion in Q4 FY2024. The company lowered its FY2025 comparable store sales guidance to 1%–2% from a prior 2%–3% range, citing softer basket and macro uncertainty. These figures illustrate the company’s focus on margin preservation amid ongoing ERP challenges.
President and CEO Jason Potter said Wilson “has been instrumental in shaping Grocery Outlet’s product and purchasing strategy and customer value proposition,” adding that Delly “has quickly proven himself as an exceptional leader and merchandiser, with the strategic rigor and operational discipline to improve efficiency today while expanding our runway for tomorrow.” Potter also noted that combining the buying team with merchandising capabilities will “advance our ongoing efforts to become a great selling organization.”
Analysts have expressed mixed views on the transition, with some downgrading the stock to market‑perform or neutral ratings while others maintain a neutral stance. The leadership change is viewed as a step toward stabilizing operations and improving margins, but the company’s guidance reflects continued caution about macro conditions and the ERP recovery timeline.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.