Could Grocery Outlet's Store Revamp Spark a Turnaround by 2026?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Source: NASDAQ.COM
Store Refresh Program: Grocery Outlet's store refresh program, launched in Q3 2025, aims to enhance customer experience and boost sales by improving store layout, standardizing product assortment, and elevating value messaging. Initial pilot stores have shown strong performance with mid-single-digit sales increases.
Expansion Plans: Following positive results, Grocery Outlet plans to implement the refresh in about 20 stores by the end of 2025 and expand to at least 150 more by the end of 2026, with further upgrades scheduled for 2027.
Sales Growth Projections: The refresh program is expected to drive comparable store sales growth of approximately 2.5% and an adjusted EBITDA margin expansion of 50 basis points in 2026, with a payback period of 3.5 years.
Market Position and Valuation: Grocery Outlet's shares have declined 47.5% over the past year, contrasting with competitors like Dollar General and Target. The company has a forward P/E ratio of 11.52, below the industry average, and is projected to see year-over-year growth in sales and earnings per share of 7.8% and 2.6%, respectively.
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Analyst Views on TGT
Wall Street analysts forecast TGT stock price to fall
26 Analyst Rating
8 Buy
14 Hold
4 Sell
Hold
Current: 112.690
Low
80.00
Averages
98.83
High
126.00
Current: 112.690
Low
80.00
Averages
98.83
High
126.00
About TGT
Target Corporation is a general merchandise retailer selling products to its guests through its stores and digital channels. The Company offers customers, referred to as guests, everyday essentials and fashionable, differentiated merchandise at discounted prices. The majority of its stores offer a wide assortment of general merchandise and food. Its merchandise categories include apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishings and decor. Most of its stores are larger than 170,000 square feet, offer a variety of general merchandise and a full line of food items comparable to traditional supermarkets. Its digital channels include a wide merchandise and food assortment, including many items found in its stores, along with a complementary assortment sold by the Company and third parties. Its brands include A New Day, Ava & Viv, Cloud Island, Favorite Day, and others. It serves guests at nearly 2,000 stores and at Target.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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