Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (2024)

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Millions of Americans have felt a pinch on their wallets at the grocery store over the past few months as food prices ballooned. For the year ended April 2022, food prices were up 10.8%, marking their largest 12-month increase since November 1980. The high prices could drive shoppers to discount retailers instead, and that's where stores like Grocery Outlet come in. Grocery Outlet calls itself "the nation's largest extreme value retailer." I decided to visit a Grocery Outlet to see why bargain shoppers love it and how it can help customers save as grocery trips become more expensive. Right off the bat, the front of the store advertises its steep discounts, drawing customers with the promise of prices 50% off those found at traditional grocery stores. The company has an opportunistic buying model. Name-brand labels offer Grocery Outlet surplus inventory due to occurrences like packaging changes or manufacturing overruns, in which companies produce more goods than they need. Grocery Outlet then buys the excess items for "pennies on the dollar" and can pass those savings onto consumers. This allows Grocery Outlet to sell items at 40%-70% less than conventional grocery stores. Grocery Outlet says most of its stores are independently operated by local families. A sign in the wine and beer section at my store proudly declared this was the case there. When the company buys from suppliers, local store owners choose which products from the inventory to offer in their stores, which Grocery Outlet says helps with "personalizing each store's selection to its local community." As a result, product selection can vary greatly by store. When I visited, there were large signs throughout the store indicating the various big-name brands that supply products there, like these. Grocery Outlet signed its first supplier agreement, with Del Monte, in 1971. Today, it works with more than 2,500 brands. Its top suppliers include household names like Kellogg's, General Mills, Kraft, Nestle, Unilever, and Procter & Gamble. When it comes to a lot of common staples, however, many items can't usually be sourced opportunistically, like milk... ...and eggs. In these cases, Grocery Outlet sources these products just like other grocery stores but tries to price them at or below the competitors' lowest price. This is meant to help shoppers finding a good bargain make sure they can also get everything they need in one trip. Grocery Outlet has had plenty of time to become, as it calls itself, "one of the largest opportunistic buyers of grocery items in the country." The company's history dates back to 1946, when founder Jim Read opened the first store. Located in San Francisco, the store was called Cannery Sales. It sold military surplus items at heavily discounted prices. Grocery Outlet didn't start selling fresh produce until 1999. On my visit, I found some deals were particularly good when it came to organic produce (I'm looking at you, avocados). There was also a great deal on watermelon with summer just around the corner. These were regular-sized for sale at the price of some personal-sized watermelons. Up next was the meat section. Many of the items here had orange stickers denoting their prices were reduced for quick sale. This made some products an especially good deal, if you could use them in time before they expired. And though Grocery Outlet has been around for decades, the company didn't start selling fresh meat until 2003. Nearby, there was an aisle devoted to what Grocery Outlet calls the "NOSH" section. NOSH stands for "natural, organic, specialty, healthy." Products here included everything from coconut flour and spirulina to snack bars and even watermelon jerky (not pictured here), which was new to me. As I walked through the store, I saw a lot of products still stored in the cardboard packaging they came in. This can help the company save on the costs of labor for workers stocking shelves. Besides groceries, the store had plenty of other products, including household items like this sharply discounted toilet paper... ...and this assortment of laundry detergent. There was a section for beauty products, personal care items, and toiletries. This area had some of the biggest discounts in the store. There was a small clothing section in one corner of the store, although some boxes were left on the sales floor nearby. Some clothes had piled up into a small heap. One area had a small selection of kids' toys. There was kitchenware... ...outdoor items and pet products. I went to the store in mid-May, a full month after Easter, but found some merchandise still lingering from the holiday, on clearance. There were also heart-shaped Ding Dongs from Valentine's Day. In the same aisle, I even saw some Oreo knock-offs from fellow grocer Food Lion. As I walked through the store, I saw empty shelves from time to time. Inventory can change very quickly at Grocery Outlet stores because of the company's opportunistic buying model. As a result, many deals can be one-time only. After visiting the store, I can see why bargain-hunters love it. If you enjoy hunting for bargains, Grocery Outlet could be a great place to shop because you never know what deals you might find. And I found that many of the items were in fact priced lower than I'd probably see elsewhere, which could very well attract more shoppers as inflation remains high. But the store may not be for everyone. Shoppers who value consistency more than the fun of a bargain hunt may be turned away by the stores' constantly changing inventory since it means they may not be able to make repeat purchases very often. I enjoyed my visit to the store and would definitely go back again.

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Retail

Sarah Jackson

2022-06-06T13:24:23Z

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (1)

Food prices have been pinching Americans' wallets for several months.
Discount retailers like Grocery Outlet could draw consumers looking to cut costs at the supermarket.
I visited the store and saw why bargain-hunters love it and how it could see more business as food inflation persists.

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Millions of Americans have felt a pinch on their wallets at the grocery store over the past few months as food prices ballooned.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (2)

For the year ended April 2022, food prices were up 10.8%, marking their largest 12-month increase since November 1980.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (3)

Source: US Bureau of Labor Statistics

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The high prices could drive shoppers to discount retailers instead, and that's where stores like Grocery Outlet come in.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (4)

In mid-May, analysts at investment bank Cowen said they expect the discounter to be "a relative long-term winner in the value grocery space," noting in addition that "its value proposition has broad demographic appeal that cuts across a wide spectrum of income levels, ages, and other factors."

Grocery Outlet calls itself "the nation's largest extreme value retailer."

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (5)

Source: Grocery Outlet

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I decided to visit a Grocery Outlet to see why bargain shoppers love it and how it can help customers save as grocery trips become more expensive.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (6)

Right off the bat, the front of the store advertises its steep discounts, drawing customers with the promise of prices 50% off those found at traditional grocery stores.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (7)

Advertisem*nt

The company has an opportunistic buying model.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (8)

Name-brand labels offer Grocery Outlet surplus inventory due to occurrences like packaging changes or manufacturing overruns, in which companies produce more goods than they need.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (9)

Source: Grocery Outlet

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Grocery Outlet then buys the excess items for "pennies on the dollar" and can pass those savings onto consumers.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (10)

Source: Grocery Outlet

See Also

What it's like to shop at Grocery Outlet, the 'extreme value' supermarket that's been described as 'the TJMaxx of grocery stores'The Untold Truth Of Grocery Outlet - Mashed Frequently Asked Questions - Grocery Outlet ᐅ Outlet-Center in Deutschland | 20 Outlets im Überblick

This allows Grocery Outlet to sell items at 40%-70% less than conventional grocery stores.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (11)

Advertisem*nt

Grocery Outlet says most of its stores are independently operated by local families. A sign in the wine and beer section at my store proudly declared this was the case there.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (12)

When the company buys from suppliers, local store owners choose which products from the inventory to offer in their stores, which Grocery Outlet says helps with "personalizing each store's selection to its local community."

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (13)

Source: Grocery Outlet

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As a result, product selection can vary greatly by store.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (14)

When I visited, there were large signs throughout the store indicating the various big-name brands that supply products there, like these.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (15)

Advertisem*nt

Grocery Outlet signed its first supplier agreement, with Del Monte, in 1971.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (16)

Today, it works with more than 2,500 brands.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (17)

Source: Grocery Outlet

Advertisem*nt

Its top suppliers include household names like Kellogg's, General Mills, Kraft, Nestle, Unilever, and Procter & Gamble.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (18)

When it comes to a lot of common staples, however, many items can't usually be sourced opportunistically, like milk...

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (19)

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...and eggs.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (20)

In these cases, Grocery Outlet sources these products just like other grocery stores but tries to price them at or below the competitors' lowest price.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (21)

Advertisem*nt

This is meant to help shoppers finding a good bargain make sure they can also get everything they need in one trip.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (22)

Source: Grocery Outlet

Grocery Outlet has had plenty of time to become, as it calls itself, "one of the largest opportunistic buyers of grocery items in the country." The company's history dates back to 1946, when founder Jim Read opened the first store.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (23)

Source: Grocery Outlet

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Located in San Francisco, the store was called Cannery Sales.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (24)

It sold military surplus items at heavily discounted prices.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (25)

Advertisem*nt

Grocery Outlet didn't start selling fresh produce until 1999. On my visit, I found some deals were particularly good when it came to organic produce (I'm looking at you, avocados).

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (26)

There was also a great deal on watermelon with summer just around the corner. These were regular-sized for sale at the price of some personal-sized watermelons.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (27)

Advertisem*nt

Up next was the meat section.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (28)

Many of the items here had orange stickers denoting their prices were reduced for quick sale. This made some products an especially good deal, if you could use them in time before they expired.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (29)

Advertisem*nt

And though Grocery Outlet has been around for decades, the company didn't start selling fresh meat until 2003.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (30)

Source: Grocery Outlet

Nearby, there was an aisle devoted to what Grocery Outlet calls the "NOSH" section.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (31)

Advertisem*nt

NOSH stands for "natural, organic, specialty, healthy."

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (32)

Products here included everything from coconut flour and spirulina to snack bars and even watermelon jerky (not pictured here), which was new to me.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (33)

Advertisem*nt

As I walked through the store, I saw a lot of products still stored in the cardboard packaging they came in.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (34)

This can help the company save on the costs of labor for workers stocking shelves.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (35)

Advertisem*nt

Besides groceries, the store had plenty of other products, including household items like this sharply discounted toilet paper...

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (36)

...and this assortment of laundry detergent.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (37)

Advertisem*nt

There was a section for beauty products, personal care items, and toiletries.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (38)

This area had some of the biggest discounts in the store.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (39)

Advertisem*nt

There was a small clothing section in one corner of the store, although some boxes were left on the sales floor nearby.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (40)

Some clothes had piled up into a small heap.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (41)

Advertisem*nt

One area had a small selection of kids' toys.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (42)

There was kitchenware...

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (43)

Advertisem*nt

...outdoor items and pet products.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (44)

I went to the store in mid-May, a full month after Easter, but found some merchandise still lingering from the holiday, on clearance.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (45)

Advertisem*nt

There were also heart-shaped Ding Dongs from Valentine's Day.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (46)

In the same aisle, I even saw some Oreo knock-offs from fellow grocer Food Lion.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (47)

Advertisem*nt

As I walked through the store, I saw empty shelves from time to time.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (48)

Inventory can change very quickly at Grocery Outlet stores because of the company's opportunistic buying model.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (49)

Advertisem*nt

As a result, many deals can be one-time only.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (50)

After visiting the store, I can see why bargain-hunters love it.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (51)

Advertisem*nt

If you enjoy hunting for bargains, Grocery Outlet could be a great place to shop because you never know what deals you might find.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (52)

Advertisem*nt

And I found that many of the items were in fact priced lower than I'd probably see elsewhere, which could very well attract more shoppers as inflation remains high.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (53)

But the store may not be for everyone.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (54)

Advertisem*nt

Shoppers who value consistency more than the fun of a bargain hunt may be turned away by the stores' constantly changing inventory since it means they may not be able to make repeat purchases very often.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (55)

I enjoyed my visit to the store and would definitely go back again.

Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (56)

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Grocery Outlet says it's up to 70% cheaper than other supermarkets. I visited the store and saw why bargain-hunters love it. (2024)

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