Who Are Grocery Outlet Bargain Market Customers?
We attract bargain hunters and regular shoppers
Opportunistic buying is why customers shop at Grocery Outlet. They find name-brand products at great bargain prices in Grocery Outlet Bargain Markets. We carry staples to attract regular grocery customers, but it’s our great bargains that keep them coming back. A significant amount of sales at Grocery Outlet Bargain Markets are products that yield our customers incredible savings compared to the same items at conventional grocery stores.
“Our customers are raving fans,” says Vice President of Real Estate Marc Drasin. “There was one grand opening in Oregon when someone came up to me and said he had been shopping at every store in the state.”
On average, customers save up to 60% at Grocery Outlet as compared to conventional grocery stores’ regular prices. We know this because we routinely take hundreds of our most commonly shopped items and compare our prices to those of conventional grocery stores and big-box competitors.
“The opportunity to procure and sell brand-name and specialty products in our stores for less, to customers who otherwise wouldn’t be putting those things in their shopping carts, makes our company really special,” says Co-CEO MacGregor Read. “It’s what ultimately drives this company’s higher calling of ‘touching lives for the better.’”
Generally, we have two types of customers: “underserved” customers and “want” customers.
“Our location has a wide variety of customers,” says Steve Smith, an independent operator in San Diego. “I’ll have San Diego Padres players shop at our store, and at the same time I’ll have customers on limited incomes.”
The underserved community is an important and significant part of Grocery Outlet Bargain Market’s business. They shop with us because they need discounts to live within their means. Our pricing allows better access to fresh foods and brand name products to families who can stretch every dollar further in our stores. This is an important part of our model as well as our mission to continuously touch lives for the better. Some Grocery Outlets are typically busier during the first 10 days of the month because that’s when many customers receive their governmental food assistance.
“Our underserved community shops us first and often,” says Eric Liittschwager, an independent operator in the greater San Francisco area. “Because of our great prices, they have better access to both staple groceries as well as produce and other specialty items like our increasing line of organic items.”
A typical customer is a female in her upper 30s buying for a household of three.
“Our core customer is the head of a family who works hard and stretches every dollar.” says Vice President of Marketing Melissa Porter. “That customer has a family to feed and comes to the store often to fill up her pantry and fridge with quality, brand name items. This mom is serious about providing good food for her household and works hard at it.”
The want customer, who chooses to live frugally, typically comes to the store once a month and shops for the experience. This customer is on the hunt for a bargain, and in Grocery Outlet they’ll find them everywhere. In addition to our core items, they’ll be WOW’d by huge discounts on things like organic coconut oil they saw at their local, higher-priced organic supermarket. Or perhaps a Napa Valley Zinfandel for $3.99 instead of the $27.99 they would pay at a liquor store.
Grocery Outlet has been working to attract these customers through the aggressive growth of our natural, organic, specialty and healthy (NOSH) program. In fact, we’re finding that all customers are equally concerned about saving money and eating healthy.