Grocery Outlet Announces Change in Board Composition
Grocery Outlet Holding Corp. has announced changes to its board of directors, with Michael Kobayashi and Lawrence "Chip" Molloy being appointed as independent directors. The appointments temporarily expand the board to 12 members.
Kobayashi, a 20-year industry veteran, has previously served as an advisor to Ross Stores, Inc., a discount department store chain. Molloy, on the other hand, has a rich background in the grocery sector, having served as CFO at Sprouts Farmers Market, Inc., and interim CEO at Torrid Holdings Inc., among other roles.
These appointments are part of a commitment to periodic board refreshment and executing the company's growth plan, as announced by Eric Lindberg, chairman of Grocery Outlet's board of directors.
The new directors bring fresh perspectives and governance experience to support Grocery Outlet's ongoing turnaround and growth strategy. The company's CEO, Lander Myer Potter, highlighted that these additions will help the organization build on efforts to improve store performance and balance its new store growth between core and new markets.
Kobayashi's leadership experience in the retail industry, particularly in driving operational excellence and leading large-scale technology transformations, is valued for the company. Molloy's proven financial leadership experience at growth-oriented retailers will complement efforts to sharpen the focus on driving strong investment returns and greater profitability.
The appointments come as Grocery Outlet is ranked No. 65 on The PG 100, Progressive Grocer's 2025 list of the top food and consumables retailers in North America. The company reported a 8.5% growth in net sales during the first fiscal quarter that ended in late March, with a 0.3% lift in comps and a 31.7% gain in adjusted EBITDA.
Grocery Outlet operates more than 520 locations in various states across the US. However, the company is currently embroiled in a lawsuit over alleged deceptive pricing practices.
Ken Alterman and Tom Herman, who have contributed to shaping Grocery Outlet into a resonant brand and setting it on a path to deliver sustainable, profitable growth, will retire from the board on August 7. Their departure marks the end of an era, but the new appointments signal a promising future for the company.
[1] Source: Grocery Dive [2] Source: Supermarket News
The new directors, Michael Kobayashi and Lawrence "Chip" Molloy, bring their extensive experience in the retail (Kobayashi) and grocery (Molloy) sectors to help Grocery Outlet perform better in business and finance. These appointments are strategic moves to strengthen the company's ongoing turnaround and growth strategy, especially in balancing new store growth between core and new markets, and improving store performance.
