“We haven’t seen a price point that stands out yet,” Wilson says. With the Covid-19 crisis intensifying, Grocery Outlet customers have been stocking up on staple items, including wine, and paper products. “People get very excited going into the stores and finding wines they can buy at $5.” “We’re known for offering a $5 bottle of wine, vetted and cheaper than you can find anywhere, but still in good shape to buy and drink,” Wilson says. bottle of wine for Grocery Outlet shoppers is $4-$6. The sweet retail price spot for a 750-ml. Grocery Outlet opened 31 new stores in 2019, and total net sales growth increased 11.9% to $2.56 billion. Grocery Outlet (Oakland store exterior pictured) was founded in 1946 and became a publicly traded company last June. “There is a lot to work with in California.” “We love stocking wine that’s local to each state we are in, but most of what we are buying is from California because that’s where a lot of wine is produced and also where a lot of wine is imported into,” Wilson says. A typical Grocery Outlet store averages about 350-400 wine SKUs. The chain’s competitive pricing strategy has fueled steady growth over recent years, and the chain plans to open 35 new stores this year. Since 2006, the number of Grocery Outlet stores has more than doubled from 128 to 353 stores 202 are located in California, 64 in Washington, 54 in Oregon, eight in Nevada, six in Idaho, and 19 in Pennsylvania (the latter is the only state where Grocery Outlet doesn’t sell beverage alcohol). We have different relationships with different wineries, but at the end of the day we are relieving them of excess inventory they can no longer move through normal sales channels.”įounded in 1946, Grocery Outlet became a publicly traded company last June. It becomes hard to sell because customers want to move on to the new vintage. Wine, being a dated product, can’t sit around forever. “Wineries making 100,000 cases could be 99% right, but they still have 1,000 cases left over when the new vintage comes along,” Wilson explains. The wine category presents unique closeout and excessive inventory opportunities for Grocery Outlet and is fueling significant national growth for the chain. Good value wines from these states bring in a lot of customers who then often shop for other things.” “Grocery Outlet customers have high expectations of finding good quality wines from these states at competitive prices. “Wine-particularly from California, Oregon, and Washington-is one of the leading predictors as to where someone wants to do their shopping,” says Cameron Wilson, director of wine, beer, and spirits at the chain. Utilizing an opportunistic buying strategy, Grocery Outlet satisfies the American palate for significant discounts and special deals. Offering discounted, overstocked, and competitively priced products-including wine, beer, and spirits-Emeryville, California-based Grocery Outlet isn’t your average U.S. The wine category presents great opportunities for Grocery Outlet (interior pictured) and is driving national growth for the chain. Offering unheard of savings on beverage alcohol, the California-based chain marches to a unique beat. Grocery Outlet’s Discounted Wine Sales Help Fuel Growth
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