Grocery Outlet Holding Corp. has tapped another online grocery provider to help bring its “treasure hunt” shopping experience to its customers’ doorsteps.
Emeryville, Calif.-based Grocery Outlet said Monday that it’s partnering with DoorDash to provide on-demand, same-day grocery delivery from 398 stores in eight states. Customers can order groceries from their local Grocery Outlet stores via the DoorDash marketplace app or website. Participating stores are coupled with the DashPass membership program, which offers free delivery on eligible orders of $35.
“Our partnership with DoorDash will help save shoppers time and money,” Grocery Outlet CEO Eric Lindberg said in a statement. “In addition to bringing more of our great products direct to consumers, our DoorDash partnership will help Grocery Outlet reach more customers with great prices during a time where every penny counts.”
DoorDash joins Instacart and Uber Eats as Grocery Outlet’s pushes ahead with its e-commerce game plan.
Grocery Outlet, whose retail model relies on value pricing and a treasure hunt shopping environment, entered the online grocery arena late last year. In October, the self-described “extreme value” grocer unveiled a 68-store online grocery delivery pilot with Instacart in California, a couple of months after the retailer disclosed that it was in talks with potential e-commerce partners.
This past April, the retailer said it had expanded Instacart same-day service to nearly 400 stores in California, Oregon, Washington and Pennsylvania. Then in a May 10 conference call on fiscal 2022 first-quarter results, Lindberg told analysts that the chain was readying to launch pilots of Uber Eats and DoorDash delivery service, and on May 19, Grocery Outlet announced the Uber Eats testing.
Grocery Outlet serves more than 1.5 million shoppers each week and offers thousands of grocery items including fresh produce and meat, packaged goods, household supplies, and more, typically at 40% to 70% below retail price. Consumers can directly purchase their favorite name-brand products at affordable prices from Grocery Outlet directly through DoorDash.
In making the transition to grocery e-commerce, Grocery Outlet noted that translating its unique model to the online realm was key. The retailer touts big discounts on brand-name products and has said a typical shopper basket is priced at 40% to 70% lower than conventional supermarket retail prices. Stores are run by independent owner-operators from the communities they serve, allowing locations to cater closely to changing customer preferences. Shopper savings is achieved through a sourcing model of procuring surplus inventory and product overruns directly from thousands of supplier partners. That includes a changing assortment of products with “WOW!” prices, fostering “treasure hunt” shopping.
To promote the DoorDash partnership, the companies are offering DoorDash DashPass members 30% off their Grocery Outlet order of $40 or more (up to a total value of $20) from Aug. 18 to 24.
“DoorDash is committed to providing customers with all the selection they crave at affordable prices, in a way that’s convenient for them and their families,” stated Shanna Prevé, vice president of business development at DoorDash. “As consumers face rising prices, we’re thrilled to partner with Grocery Outlet to provide consumers across the country with a new way to purchase more affordable groceries while maximizing their budgets. With this partnership, consumers can find and enjoy even more affordable grocery selection on our marketplace.”
Overall, Grocery Outlet’s retail network includes 425 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada, New Jersey and Maryland.
