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11 FREQUENTLY ASKED QUESTIONS
1) How do you get all of these great deals?
Answer: We buy overruns, package changes, inventory imbalances and specially made products at substantial discounts from manufacturers. We work directly with 2500 manufacturers, with no middleman to make sure we are paying the best price. We have been in relationships with the largest manufacturers for 35 years as their "go to retailer" - they come to us first.
2) What is the mix of product you buy?
Answer: About 75% of what we buy fits our core business model — of overstocks and other discontinuous merchandise. The other 25% is represented by targeted made-to-order food consumables to round out the shopping trip (produce, milk, bread, eggs).
3) How much cheaper are you than the competition?
Answer: We shop a WinCo Foods every month; they are the toughest on price on the west coast. A basket of $300 dollars is 18-20% cheaper at G.O. than at WinCo Foods. We are 20-25% cheaper than Wal-Mart and 40-50% cheaper than a Safeway or Albertson's.
4) Who do you compete with at retail? For product supply?
Answer: We compete with conventional and discount supermarkets, supercenters, club stores, Dollar and 99 Cent Only! stores, closeout retailers, and just about anyone else who sells food and consumables. At the purchasing level, we compete with BigLots!, 99 Cent Only! stores and some regional dollar stores.
5) What is fastest growing category you sell? Second fastest growing?
Answer: Produce. In the past 5 years it has grown to almost 8% of our total sales. The second fastest growing department is Beer & Wine. It has doubled its growth (to about 4% of sales) in the past 6 years.
6) Can you do all of your shopping at a Grocery Outlet?
Answer: Just about, if you are shopping with a list you can get about 95 % of what you are looking for as long as you are willing to do some brand swapping.
7) What are some of the most memorable deals you have purchased?
Answer: In 2001 we bought the largest single closeout in our history, WEBVAN.COM’s entire inventory following bankruptcy. It was valued at about $12.0m.
8) How many buyers do you have?
Answer: 15
9) How much experience do the buyers have and what are their backgrounds?
Answer: They average about 10 years of experience at Grocery Outlet. Most of our Buyers have risen through the ranks. We have hired a few “industry experts” from the outside.
10) Why don’t you have stores in other parts of the Country?
Answer: We still have many West Coast locations to fill before journeying to the East.
11) What happens to products that "fail" within Grocery Outlets? Things that don’t sell?
Answer: We have had our fair share of mistakes in the past. We always lower the retail price within our system to make it go away ... everything sells at a price!
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