Grocery Outlet’s Rapid Growth Signals New Grocery Business Opportunities

Posted Apr 19th, 2017

Grocery Outlet’s fast-tracked expansion presents lucrative career move for experienced retail managers

The grocery industry might be a rocky road for some but not for Grocery Outlet. Twenty-nine Grocery Outlet stores were launched in 2016, and eight in just the first three months of 2017. Grocery Outlet’s business model where independent operators sell discounted brand-name goods with no limits on income is great news for experienced retail managers looking for new grocery business opportunities.

Grocery Outlet’s momentum is a result of special value proposition

The grocery business might be a competitive industry, but Grocery Outlet’s value proposition makes it stand out. Grocery Outlet customers appreciate the deep discounts on brand-name goods and have taken the “Shop Us First” directive to heart, enjoying the treasure hunt for good products at great prices. As a result, independent operators boast of a dedicated following in their communities, and Grocery Outlet’s meteoric growth is proof that both consumers and independent operators love what they see.

A mom facing away from the camera checks the label on a box of lettuce in the produce aisle while a smiling toddler squeeze her eyes shut as she sits in the buggy.
Grocery Outlet customers appreciate the discounted prices on brand-name products.

Independent operators enjoy the full autonomy they have over store operations including: merchandising, inventory and staffing. Sergio and Irene Soto, independent operators at Grocery Outlet’s new Sun Valley, CA, store certainly do. Sergio, an Army veteran, worked with Safeway for five years before coming on board as an independent operator at Grocery Outlet.  

Frustrated with Safeway’s cookie-cutter approach to every aspect of the grocery business, Sergio had become increasingly tired of seeing the wrong decisions being made by corporate for the store he knew about best. It was time to make a move, and he chose Grocery Outlet.

Why Grocery Outlet appeals to experienced retail managers

Independent operators like Sergio and Irene pick inventory at deeply discounted prices from Grocery Outlet’s rotating catalog and tweak margins that will maximize profits. Independent operators stock inventory on a consignment basis which means precious liquid capital is not tied up in unsold inventory. There is no cap on earnings potential, so the more they sell, the more they make.

A woman with a child in her buggy looks at cereals on the left side of the aisle, while a woman on the right side of the aisle chooses a juice from a high shelf.
Grocery Outlet independent operators choose products from a rotating catalog and stock them on consignment basis.

Equally important for Grocery Outlet independent operators is the complete autonomy they have over merchandising, marketing and inventory decisions. Since they know their customers best, independent operators make buying and marketing decisions that are precisely tailored for their stores. This also means that each Grocery Outlet store is different, inviting customers to frequent various Grocery Outlet stores in the region.

Grocery Outlet is family-friendly. Unlike traditional corporate-run grocery stores that might frown upon family members working together, Grocery Outlet encourages it. Sergio’s wife, Irene, partners with him at the Sun Valley store, and the Sotos are just one example of many where husband-and-wife teams work together as independent operators.

The complete autonomy over business decisions, the ability to earn money without an income cap, stock inventory on a consignment basis and the flexibility to work with family are just a few of the many reasons experienced grocery store managers are increasingly choosing to become independent operators with Grocery Outlet.

Learn more about Grocery Outlet

If you’re an industry professional looking for strategic grocery business opportunities, we urge you to consider Grocery Outlet, especially given our sustained and enduring momentum. You can download our free information report for more details about our business. You can also learn more by visiting our research pages.

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