Is Grocery Outlet Cheaper Than Kroger?
A price comparison of two popular supermarkets
Grocery shoppers are always on the lookout for ways to save money on their weekly hauls. Two popular options for budget-conscious consumers are Grocery Outlet and Kroger. Both stores offer competitive prices, but which one truly provides the best value?
Grocery Outlet generally offers lower prices on many items compared to Kroger, especially on brand-name products. The bargain market chain claims to provide discounts of 40-70% off retail prices, though independent price checks suggest the actual savings are closer to 10-30%. Grocery Outlet achieves these savings by purchasing overstock, closeout, and discontinued items directly from manufacturers.
Kroger, on the other hand, is a more traditional supermarket with a wider selection of products. While it may not match Grocery Outlet's deepest discounts, Kroger offers consistent pricing and frequent sales on both national brands and its own private-label items. The company's size and buying power allow it to negotiate competitive prices with suppliers, making it a strong contender in the budget grocery market.
Overview of Grocery Outlet and Kroger
Grocery Outlet and Kroger represent two distinct approaches to grocery retail in the United States. Their business models, store formats, and target markets differ significantly, shaping their competitive strategies and customer appeal.
Business Models and Store Profiles
Grocery Outlet operates as a discount supermarket chain, offering brand-name products at reduced prices. The company achieves this through opportunistic sourcing, purchasing excess inventory and closeouts from manufacturers. Stores are independently owned and operated by local families.
Kroger follows a more traditional supermarket model. It offers a wide range of products, including fresh produce, meat, dairy, and household items. Kroger stores typically feature larger floor plans and carry a broader selection of merchandise compared to Grocery Outlet.
Geographical Presence and Location Strategies
Grocery Outlet has a concentrated presence in the western United States, with stores in California, Oregon, Washington, Idaho, Nevada, and Pennsylvania. The chain focuses on smaller, neighborhood locations to create a local feel.
Kroger boasts a much broader national footprint. It operates under various banners across 35 states, including Kroger, Ralph's, Fred Meyer, and Harris Teeter. The company targets both urban and suburban areas with diverse store formats.
Customer Base and Market Positioning
Grocery Outlet appeals to bargain-conscious shoppers seeking discounts on brand-name products. Its "treasure hunt" shopping experience attracts customers looking for unexpected deals.
Kroger caters to a wider demographic, from budget-minded families to upscale consumers. The company emphasizes its fresh food offerings, private label brands, and loyalty program to attract and retain customers.
Both chains face competition from other supermarkets and discount retailers. Grocery Outlet competes directly with Aldi in some markets, while Kroger contends with traditional supermarkets and big-box stores like Walmart.
Price Comparison and Saving Strategies
Grocery Outlet and Kroger employ different pricing strategies, offering various ways for customers to save. Understanding these differences can help shoppers maximize their savings.
General Price Levels and Trends
Grocery Outlet typically offers lower overall prices compared to Kroger. The store specializes in discounted surplus products from national brands, resulting in prices about 27% below average. Kroger, while generally more expensive, maintains competitive pricing on many items.
Grocery Outlet's inventory changes frequently due to its surplus model. This can lead to inconsistent availability of specific products. Kroger provides a more stable selection, allowing for easier meal planning and budgeting.
Price trends at both stores fluctuate based on market conditions and seasonal factors. Grocery Outlet's prices tend to be more volatile due to its ever-changing inventory.
Discounts and Sale Prices
Both stores offer regular sales and discounts, but their approaches differ. Grocery Outlet's prices are already discounted, with additional markdowns on perishable items nearing expiration. These can lead to significant savings on select products.
Kroger runs weekly sales and promotions, often featuring buy-one-get-one deals or multi-buy discounts. The store also offers digital coupons through its app, which can be stacked with manufacturer coupons for extra savings.
Grocery Outlet doesn't typically offer additional coupons or circular ads. Their "WOW" deals highlight exceptionally low-priced items throughout the store.
Loyalty Programs and Exclusive Discounts
Kroger's loyalty program is more robust, offering personalized discounts and fuel points. Members receive digital coupons, exclusive pricing on select items, and can earn rewards for future purchases.
Grocery Outlet lacks a traditional loyalty program. However, they offer a "WOW Alerts" email subscription that notifies customers of special deals and new arrivals.
Kroger's program can lead to substantial savings for regular shoppers who take full advantage of personalized offers and fuel rewards.
Average Savings on Common Items
On staple items like milk, eggs, and bread, Grocery Outlet often beats Kroger's regular prices. However, when factoring in Kroger's sales and loyalty discounts, the price gap can narrow significantly.
Item Grocery Outlet Kroger (Regular) Kroger (Sale) Milk $2.99 $3.49 $2.99 Eggs $2.49 $2.99 $2.49 Bread $1.99 $2.49 $1.99
For a typical family spending $270 per week on groceries, shopping at Grocery Outlet could potentially save $70-$80 compared to Kroger's regular prices. However, savvy Kroger shoppers using all available discounts might reduce this difference to $30-$40 per week.
Product Assortment and Selection
Grocery Outlet and Kroger offer distinct product assortments that cater to different shopper preferences. Their selections vary in terms of brand availability, produce quality, specialty departments, and unique offerings.
Availability of National and Store Brands
Grocery Outlet specializes in discounted name-brand products, often featuring surplus or closeout items. This results in a constantly changing inventory of national brands at reduced prices. Kroger, on the other hand, maintains a consistent stock of popular national brands alongside its extensive private label offerings. Kroger's store brands, such as Simple Truth and Private Selection, cover a wide range of products across various categories.
Grocery Outlet's selection can be unpredictable, with limited quantities of certain items. Kroger provides a more stable assortment, allowing customers to reliably find their preferred brands and products.
Quality and Variety of Produce
Kroger typically offers a wider variety of fresh produce, including conventional and organic options. Their produce departments are often larger and better-stocked than those at Grocery Outlet. Kroger's quality control measures for produce tend to be more consistent.
Grocery Outlet's produce selection can be more limited and variable. However, they sometimes offer great deals on seasonal fruits and vegetables. The quality may vary more at Grocery Outlet due to their sourcing of surplus or closeout items.
Deli, Meat, and Organic Offerings
Kroger stores usually feature full-service deli and meat departments, providing a range of freshly prepared foods, sliced meats, and cheeses. They also offer a broader selection of organic products across various categories, including produce, dairy, and packaged goods.
Grocery Outlet's deli and meat offerings are typically more limited. They may have pre-packaged deli meats and cheeses rather than a full-service counter. Organic options at Grocery Outlet can be hit-or-miss, with availability depending on current stock.
Exclusive and Undersized Items
Grocery Outlet excels in offering unique and undersized items. These may include:
Limited edition flavors
Discontinued products
International brands
Smaller package sizes
Kroger occasionally offers exclusive items through partnerships or limited-time promotions. Their focus is more on maintaining a consistent selection of standard sizes and popular products.
Grocery Outlet's undersized items can provide value for smaller households or those wanting to try new products without committing to large quantities. Kroger's selection is geared towards providing familiar options in standard sizes.
Comparing Shopping Experience and Services
Grocery Outlet and Kroger offer distinct shopping experiences and services that cater to different customer preferences. Each retailer has unique attributes in store layout, digital offerings, and customer satisfaction levels.
Store Layout and Shopping Environment
Grocery Outlet typically features a no-frills warehouse-style layout. Aisles are often stocked with rotating inventory, creating a treasure hunt atmosphere. Product selection can vary significantly between visits.
Kroger stores have a more traditional supermarket layout. Departments are clearly defined, making navigation easier for shoppers. Consistent product placement and wider aisles contribute to a more structured shopping experience.
Grocery Outlet's checkout process is usually quick, with fewer lines due to lower customer volume. Kroger offers more checkout options, including self-service kiosks and dedicated lanes for small purchases.
Grocery Delivery Options and Digital Services
Kroger excels in digital services. They provide a comprehensive mobile app for online ordering, digital coupons, and personalized deals. Home delivery and curbside pickup options are widely available across Kroger locations.
Grocery Outlet lags in digital offerings. Most stores do not offer delivery or pickup services. Their limited online presence focuses on showcasing weekly deals rather than facilitating e-commerce.
Kroger's digital ecosystem includes features like Kroger Pay for touchless checkout and a rewards program integrated with their app. Grocery Outlet's tech offerings are minimal, with some locations participating in third-party delivery services.
Customer Ratings and Satisfaction
Kroger generally receives positive customer ratings for its wide product selection and loyalty program. Shoppers appreciate the consistent shopping experience across stores and the personalized deals offered through their digital platforms.
Grocery Outlet customers often praise the low prices and unique product finds. Satisfaction levels can vary due to inconsistent inventory, but many shoppers enjoy the bargain-hunting aspect.
Both retailers have loyal customer bases, but for different reasons. Kroger attracts those seeking convenience and a full-service grocery experience. Grocery Outlet appeals to budget-conscious shoppers willing to trade consistency for potential savings.
Financial Considerations for Shoppers
Choosing between Grocery Outlet and Kroger involves careful analysis of pricing strategies and shopping habits. Shoppers must weigh various factors to maximize their savings and make informed decisions.
Cost Impact on the Weekly Grocery Bill
Grocery bills can vary significantly between Grocery Outlet and Kroger. Grocery Outlet often offers deeper discounts on brand-name items, potentially reducing overall expenses. A family of four might save $20-$40 per week by shopping at Grocery Outlet.
Kroger, however, provides consistent pricing and a wider selection. This can be beneficial for shoppers who prefer specific brands or need specialty items not found at discount stores.
Regular shoppers at either store may benefit from loyalty programs. Kroger's rewards system can lead to additional savings on fuel and groceries over time.
Evaluating Price per Unit and Bulk Purchases
Unit pricing is crucial for comparing true costs. Grocery Outlet may offer lower sticker prices, but Kroger often provides better value on larger quantities.
For example:
Cereal at Grocery Outlet: $2.99 for 12 oz ($0.25/oz)
Cereal at Kroger: $3.99 for 18 oz ($0.22/oz)
Bulk purchases at Kroger can yield significant savings. A 5-pound bag of flour might cost less per pound than a 2-pound bag at Grocery Outlet.
Smart shoppers compare unit prices and consider storage capacity when deciding where to buy.
Loss Leaders and Their Effect on Savings
Both stores use loss leaders to attract customers. These are items priced below cost to drive foot traffic.
Grocery Outlet's rotating inventory means loss leaders change frequently. Shoppers might find exceptional deals on different products each visit.
Kroger typically features consistent loss leaders, often on staple items like milk or eggs. This predictability allows for planned savings on regular purchases.
Savvy consumers can maximize savings by:
Identifying loss leaders at both stores
Planning meals around these discounted items
Stocking up on non-perishable loss leaders when prices are lowest
By strategically shopping loss leaders at both stores, families can reduce their grocery expenses significantly.
Comparative Analysis of Specific Groceries
Price differences between Grocery Outlet and Kroger vary across product categories. Staple foods, branded items, and common grocery lists show distinct patterns in cost and selection.
Price and Size Comparison of Staple Foods
Grocery Outlet often offers lower prices on staple foods compared to Kroger. Bananas at Grocery Outlet typically cost less per pound. A dozen eggs can be up to 20% cheaper at Grocery Outlet. Milk prices fluctuate, but Grocery Outlet frequently undercuts Kroger by 5-10%.
Ground beef shows more variability. Kroger sometimes has better deals on larger packages. Grocery Outlet excels with discounts on smaller quantities.
Vegetables like tomatoes, carrots, and cucumbers are generally priced lower at Grocery Outlet. However, Kroger may have better deals during seasonal sales.
Comparison of Popular Branded Items
Branded items show significant price differences. Heinz ketchup is often 15-25% cheaper at Grocery Outlet. Jif peanut butter sees similar discounts.
Grocery Outlet's pricing on cereals, snacks, and canned goods like diced tomatoes and corn beats Kroger by 10-30%. However, selection at Grocery Outlet can be limited and inconsistent.
Kroger offers more consistent availability of popular brands. Their store brands provide competitive alternatives to name brands, often at lower prices than Grocery Outlet's discounted name brands.
Case Studies of Common Grocery Lists
A typical family grocery list including bread, milk, eggs, cheese, fruits, and vegetables shows average savings of 12-18% at Grocery Outlet compared to Kroger.
For a list focused on packaged goods like pasta, sauces, and snacks, Grocery Outlet's savings can reach 20-25%. However, specific brand availability may vary.
A health-focused list with items like hummus, salad greens, and whole grain products shows mixed results. Grocery Outlet often has better prices on packaged health foods, while Kroger may offer better deals on fresh produce.
Shoppers buying ingredients for specific recipes may find Kroger more reliable for consistent availability, despite potentially higher prices.
Expert Opinions and Market Research
Industry analysts, consumer surveys, and historical data provide valuable insights into the pricing strategies and market positions of Grocery Outlet and Kroger. These sources offer a comprehensive view of how the two chains compare in terms of affordability and consumer perception.
Insights from Industry Analysts
Retail experts consistently highlight Grocery Outlet's unique business model. The chain focuses on opportunistic buying, purchasing excess inventory from manufacturers at discounted rates. This allows them to offer name-brand products at lower prices than traditional grocers like Kroger.
Analysts note Kroger's strength in economies of scale and supply chain efficiency. The company's size enables bulk purchasing and cost-effective distribution. However, Grocery Outlet's flexible inventory model often results in deeper discounts on specific items.
Researchers from ConsumerPedia point out that Grocery Outlet's prices can be 40-70% lower than conventional supermarkets on certain products. Kroger, while competitive, typically offers more modest discounts in the 10-30% range.
Consumer Surveys and Behavior Research
Recent surveys indicate that price-conscious shoppers increasingly turn to Grocery Outlet for significant savings. A 2023 study found that 78% of Grocery Outlet customers cited lower prices as their primary reason for shopping there.
Kroger, however, maintains strong customer loyalty due to its wider selection and consistent inventory. A consumer behavior study revealed that 65% of Kroger shoppers value the store's reliability and product variety over absolute lowest prices.
Market basket comparisons show mixed results. On average, Grocery Outlet offers lower prices on packaged goods and non-perishables. Kroger often has better deals on fresh produce and meat due to its robust supply chain.
Historical Data on Pricing and Consumer Choices
Pricing trends over the past five years show Grocery Outlet consistently undercutting Kroger on many items. However, Kroger's prices have remained more stable, while Grocery Outlet's can fluctuate based on available inventory.
Consumer shopping patterns have evolved. Data indicates a growing trend of split shopping, with customers buying non-perishables at Grocery Outlet and fresh items at Kroger. This hybrid approach allows savvy consumers to maximize savings.
Long-term price tracking reveals that Grocery Outlet's discounts are most pronounced on name-brand items, often 30-50% below Kroger's prices. Kroger maintains an edge in private-label offerings, with prices typically 10-20% lower than national brands.
Conclusion
Grocery Outlet offers competitive prices on many items compared to Kroger. Consumers can find significant savings, especially on name-brand products.
Grocery Outlet's business model allows for lower prices on surplus inventory and close-out items. This can result in substantial discounts for shoppers.
Kroger provides consistent pricing and a wider selection of products. Their loyalty program offers additional savings opportunities for regular customers.
Price-conscious consumers may benefit from shopping at both stores. Grocery Outlet excels in discounted name brands, while Kroger provides reliable everyday low prices.
Ultimately, the cheapest option depends on individual shopping habits and preferences. Comparing prices and taking advantage of sales at both stores can maximize savings.
Careful planning and flexibility in brand choices allow shoppers to reduce their grocery bills at either retailer. Both Grocery Outlet and Kroger have strengths that appeal to budget-minded consumers.
