Organic Foods Help Drive Sales

Posted Jul 20th, 2017

Grocery Outlet buyers offer deep discounts on natural and organic foods, increasing sales potential for Independent Operators

Shawndra Salma, an Independent Operator of Grocery Outlet’s Davis, CA, store along with her husband, Tarek, remembers when Grocery Outlet used to be called Canned Foods in the early ‘80s. Today, Grocery Outlet’s inventory emphasizes a whole range of products including many in the Natural, Organic, Specialty and Healthy (NOSH) category.

Grocery Outlet buyers secure deep discounts on brand-name goods in this growing department and pass along the savings to Independent Operators. The inclusion of NOSH in their inventory has subsequently allowed Grocery Outlet Independent Operators to attract the coveted “want” customers and increase their sales potential.

Grocery Outlet’s inventory attracts broad range of shoppers

“Need” customers look for food staples such as bread, whereas the “want” shoppers pick up more upmarket ticket items like NOSH and wine. Eric Liittschwager, the Independent Operator at Grocery Outlet’s downtown San Francisco Visitacion Valley location, says Grocery Outlet’s inventory allows Independent Operators to cater to the “need” customer, and the NOSH items also attract the “want” customer who typically spend more money. Grocery Outlet’s deeply discounted prices on brand-name NOSH items has allowed him to do just that.

An aisle of shelves stocked with various products has a sign hanging overhead that reads, ‘ NOSH (Natural, Organic, Specialty and Healthy).’
Grocery Outlet’s expanded NOSH (Natural, Organic, Specialty and Healthy) section has allowed Independent Operators to increase sales potential by attracting “want” customers.

Bill and Amy Clisham, Independent Operators of Grocery Outlet’s New Holland, PA, store, say the expansion of the inventory to include fresh meat, produce and NOSH items has paid rich dividends for them. “The NOSH items really help bring customers in and get that basket ring up,” Amy says. And thanks to Grocery Outlet buyers, customers can get name-brand organics for a lot less money. It’s a big draw for Independent Operators.

Think fresh, think NOSH

Tom Fawcett at Grocery Outlet corporate says that Grocery Outlet has expanded its focus to include name-brand products in the NOSH category because customers are looking for more natural, organic and healthy items, and Grocery Outlet buyers are able to secure tremendous deals on such items.

“We are able to offer them a great value vs. other retailers,” Fawcett says, “Many of our customers aren’t able to access or afford these items at other retailers. At Grocery Outlet they can afford to feed themselves and their families with good, wholesome food for far less money than if they shopped elsewhere.”

A woman leans over the fresh produce bins to select a piece of fruit. In the backgrond, various goods are stacked neatly on shelves.
Grocery Outlet has long since cast away its image as a purveyor of only canned goods. Fresh produce and meats, organic items and an impressive selection of wines have helped.

Grocery Outlet’s history shows that the company has diversified its rotating catalog of inventory over the years, expanding from canned goods to deep discounts in a whole range of categories such as fresh produce, cheeses, meats, NOSH and also wines. Such a robust selection is good news for Independent Operators, who can offer low prices on healthy foods while also increasing their sales potential by attracting a wider segment of customers.

By thinking fresh, and thinking NOSH, Grocery Outlet has expanded the products available for Independent Operators to leverage. Independent Operators like the Clishams select the products that will work for their stores and tweak sales margins to maximize earning potential. “People can’t believe the prices of our organic and NOSH items,” Bill Clisham says. “They tell me the same products cost much more at other stores.” The best part? The word gets around, Bill says. The NOSH items are such a draw that the customers send their friends and business continues to grow, Bill adds.

Learn more about Grocery Outlet

If you’re interested in learning more about and how you can leverage your experience to own your own business, we urge you to consider Grocery Outlet. You can download our free information report for more details about our business and grocery manager responsibilities, or learn more by visiting our research pages.

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