![]() This is not Grocery Outlet’s first foray into Southern California. Grocery Outlet partnered with Berkshire Partners LLC in 2008, and in 2014, Hellman Freidman, a Bay Area private equity firm purchased a majority interest in Grocery Outlet, making way for the current expansion, according to company officials. And stores like Target and Walmart only add to the competition. ![]() As the Los Angeles Times has reported, stalwart grocers Albertsons and Safeway, which also own Vons and Pavilions, merged into one company to better compete against market leader Ralphs and others. “We can stretch people’s dollars like you wouldn’t believe,” she added.īargains at the Costa Mesa store included 5-ounce boxes of organic spinach and arugula, two for $5 (one container was selling for $3.99 at Whole Foods Jamboree in Tustin), a dozen Grade AA eggs for $2.99 (a similar package was going for $4.29 at the Albertsons down the street) and a box of 10 Kashi snack bars for $2.99 ($4.69 at Albertsons).īut it’s an interesting time in the grocery business, and one might question Grocery Outlet’s plan with Haggen backtracking after its experiment in Orange County and Fresh & Easy being forced to retreat from the area. “At the conventional grocery stores it’s $3.99. “We have a 32-ounce container of Silk almond milk for $1.49,” said Kelli Wiggins, who owns the new Westminster store with her husband, Scott. ![]() The benefit of this kind of model, of course, is lower prices. “Rather than disposing of that product, they’re better off selling it to us,” she said.īut Porter was clear that everything in the store is still fresh. The company, which was founded in 1946 in San Francisco, finds discounts when food manufacturers produce too much and need to get the leftovers off their hands, or when traditional supermarkets reject items that are too close to their expiration date.īut the most common way Grocery Outlet acquires cheap products is when a manufacturer introduces new packaging and is suddenly left with perfectly good food in the wrong box.įor instance, said Porter, if a food company decides to start advertising a product as gluten-free, it may have a “warehouse full of products” without the gluten-free label that it no longer wants to sell. Maxx but for food,” said Melissa Porter, vice president of marketing for Grocery Outlet. Instead of stocking the same items month to month, Grocery Outlet hunts for bargains among food distributors and fills its shelves with whatever can be bought on the cheap that particular week. its business model is completely different from that of most of its competitors. While Grocery Outlet looks like a typical grocery store - the Costa Mesa location sits in a strip mall near a CVS and a BevMo! at 1835 Newport Blvd. By early next year, an outlet is expected to open in La Habra. Grocery Outlet Bargain Market opened in Costa Mesa on Thursday - the first in the area since a shop in Fountain Valley closed in 2012 - and a store in Westminster will host a grand opening this month. Amid fierce supermarket competition, a new grocery store chain has come to Orange County, boasting of “extreme discounts” on brand-name items.
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