Grocery Outlet's SAP launch cut gross margin by almost 2 points.
Judge Jon S. Tigar of the Northern District of California dismissed the proposed investor class action on 16 September, Law360 reported.
The investor accused Grocery Outlet of mishandling an enterprise resource planning rollout that caused disruptions and losses.
The system is from SAP. According to Grocery Dive, it replaced an aging platform and went live in August 2023.
In a court filing, Grocery Outlet wrote: "The SAP launch did not progress as smoothly as Grocery Outlet had hoped." The company said the transition caused inventory and ordering problems in the third quarter of 2023.
Grocery Dive reported the company said the technology issues cut its gross margin by almost 2 percentage points in the first quarter of fiscal 2024. By October 2025 the stock had lost more than half its value since the system went live, the outlet reported.
Grocery Outlet had argued the suit did not "allege adequately a single false or misleading statement". Law360 reported that the judge found the suit does not show the company's disclosures were misleading or deficient.
What does your board get told the week before go-live?
Sources
Our file on SAP
- 20 Sept
SAP's chief executive said voice replaces much data entry in three years.
- 19 Sept
KPMG cut jobs in its SAP and AI teams. Partners averaged £880,000.
- 17 Sept
Broadcom raised VMware prices by 10x or more, European cloud providers say.
- 11 Sept
Zeiss dropped the clean rebuild of its SAP after about €200 million.
- 10 Sept
AWS made AI agents sign into SAP as you. No shared account.
Every story here is open to read. The ERP LEADERS brief goes one step further.
One ERP programme per issue, laid out for a steering committee. Issue 01 is the Zeiss case. Read issue 01 or sign up for the brief.
Welcome back. · Issue 01