Connect with us

Hi, what are you looking for?

Economy

80-year-old grocery chain doubles down on treasure-hunt bargains

For many shoppers, finding a great deal has become less of a welcome surprise and more of a necessity.

In 2025, grocery sales increased 1.2% while volume fell by 1%, according to McKinsey’s 2026 State of Grocery report. That dichotomy is perhaps one of the clearest examples of how stretched grocery shoppers have become. They’re spending more but are actually getting less. 

Grocery Outlet is leaning into that growing demand for bargains.

The 80-year-old discount grocer is putting a renewed emphasis on the “treasure hunt” experience that has long differentiated it from conventional supermarkets, seeking out opportunistic merchandise that can be sold at steep discounts.

And Wall Street is taking note.

Grocery Outlet’s bargain strategy hit a snag

Earlier this year, Grocery Outlet shared that it would close 36 underperforming stores. 

During the company’s fourth-quarter fiscal year 2025 earnings call, CEO Jason Potter pointed to three factors behind the closing of those locations. 

One was the retailer stepping back from a strategy that had long been a core part of its identity.

“Our push to improve in-stocks and add assortment to ensure the availability of everyday items squeezed our supply chain, impacting our ability to deliver high-quality opportunistic products that drive value in this business,” Potter said. 

ALSO READ: Grocery chain closes stores, leaving shoppers with fewer options

Opportunistic products or merchandise are the goods bought by retailers like Grocery Outlet at deeply discounted prices. Typically, the products come from manufacturers with excess inventory or those that have implemented recent packaging or ingredient changes, rendering existing products obsolete.

“Shoppers came in looking for the value and the treasure hunt experience they expect from Grocery Outlet, but left with fewer items per trip because we didn’t deliver the weight of wow items and the breadth of assortment that drives basket size and value,” he continued.

To improve sales, Potter said the chain was taking steps to return to that treasure-hunt experience.

“Over the next several months, our team is intensely focused on ensuring we have the right weight and depth of quality, opportunistic branded product flowing into our mix to restore a winning position on value with our customer,” he told investors.

After several quarters of declining comparable sales, Grocery Outlet is doubling down on its treasure-hunt philosophy.

Tom Werner / Getty Images

Grocery Outlet is bringing the treasure hunt back

Two quarters later, there are signs that the strategy is starting to work.

In a recent note from Bank of America Global Research shared with TheStreet, Research Analyst Robert Ohmes upgraded Grocery Outlet stock from neutral to buy, writing that, “under CEO Jason Potter, Grocery Outlet is rebuilding the treasure hunt experience and restoring opportunistic buying.”

“The renewed focus on opportunistic merch should be a powerful traffic & basket driver,” he continued.

More grocery news:

The results are also showing up in the company’s financials. 

At the close of the second quarter of the 2026 fiscal year, comparable store sales saw a 70-point improvement over the previous quarter, basket size improved by 100 points, and traffic increased by 1.8%.

“Our first half progress reinforces our confidence that restoring the core strengths of the Grocery Outlet model can drive sustainable improvement,” Potter told investors during the August call.

“Since the start of this year, we’ve prioritized improved sourcing, product flow, visibility, and store-level execution while expanding key supplier relationships,” he continued. “Together, these actions have significantly increased and strengthened our opportunistic assortment and improved our mix.”

Grocery Outlet’s return to its roots is good for shoppers

Grocery Outlet’s return to a treasure-hunt strategy is good news for shoppers.

One survey by global marketing firm Advantage Solutions found that 72% of shoppers spent more on groceries this year than last year.

With grocery budgets strained, the majority of shoppers also reported prioritizing necessities over aspirational or “fun” products.

Grocery Outlet’s treasure-hunt model means shoppers don’t necessarily have to choose between saving money and having a little fun. 

Instead, it offers even the consumer a chance to find deeply discounted products while discovering something they weren’t necessarily looking for. 

If the retailer can make those unexpected bargains a more consistent part of the shopping experience, the strategy could be just the thing to help drive traffic and improve sales.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

Western Digital stock has slumped and moved into a bear market, mirroring the performance of other top companies in the memory industry. WDX was...

News

Dell Technologies stock has continued its strong rally this year, making it one of the top gainers in the S&P 500 Index. It has...

News

SpaceX SPCX shares look set to end a three-day winning streak Wednesday, falling around 1.6% in early trading as a broader market sell-off weighed...

News

Bending Spoons stock has staged a strong comeback in the past three days, moving from this month’s low of $31.5 to the current $41....

News

Broadcom shares (NASDAQ: AVGO) slipped close to 2% in premarket trading Thursday after a report revealed that the technology company is seeking to raise...

News

IREN stock has remained under pressure this month as investors have remained cautious of neocloud companies. It dropped to $38.70 on Wednesday, down modestly...

You May Also Like

Investor Strategy

The consensus story about Samsung Electronics is that you buy it for the memory supercycle. That story is incomplete, and the part everyone is...

Business Insider

Every country that builds things eventually faces the same question about a cheaper foreign rival, and there are only two honest answers to it....

Investor Strategy

SK Hynix is not trading at seven times earnings, whatever the screen says. The Korean memory maker closed at ₩1,678,000 on 25 August 2026,...

Investor Strategy

Almost every summary of X-Energy you will read says the company reached the public market through the Ares Acquisition Corporation II blank-cheque vehicle. It...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2026 respectinvestment.com | All Rights Reserved