About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:

Discount Grocery Stores: Are They Worth the Savings?

By Rebecca VanderMeulen

shopping at a discount retailerKeeping to a household budget often means trimming unnecessary expenses, but some items are indispensable – food, for one.

You probably already cut coupons and buy store brands just like any budget-conscious shopper. But did you know that some grocery stores specialize in cut-rate food and household goods not “good enough” for your average supermarket?

They might be called “salvage,” “bargain,” or “discount” grocery stores. You might find them in a strip mall or tucked into an industrial neighborhood. Either way, these stores can cut a nice chunk of change from your food bill and enable you to save money on groceries.

Types of Bargain Grocery Stores

Each cut-rate retailer is different. Some are large chains, like ALDI and Bottom Dollar Food. These chains sell some products branded with their own generic label, in addition to non-generic items. They’re largely able to offer lower prices because they feature few, if any, of the departments you’ll find at a supermarket, like in-house butchers and bakers. Most carry the same types of merchandise you’d find in a supermarket, including produce, milk, frozen dinners, and shampoo.

“Salvage” groceries or “outlet” stores, on the other hand, are stocked with second-rate goods. The shelves are full of dented cans, banged-up boxes, and items past the manufacturer’s use-by dates. You’ll see cereal boxes promoting movies that are no longer in theaters, and store brands made for chains in other parts of the country.

Many salvage groceries are operated independently, but chains include Amelia’s Grocery Outlet in Pennsylvania and Grocery Outlet on the West Coast.

grocery

Pros & Cons of Discount Groceries

Discount grocery stores have both strong points and drawbacks.

Advantages

  1. If you liken garage sales to treasure hunts, you’ll love bargain grocery stores. My prizes have included scented candles I’ve given as gifts, and all-natural peanut butter discounted at more than half off the regular grocery store price.
  2. Some accept manufacturer’s coupons. For instance, if you have a coupon for $1.50 off a 12-ounce bag of ground coffee, you’d pay $6.99 if you went to a supermarket charging a normal rate of $8.49. However, at a bargain store selling the same bag of coffee for $3.99, you’d pay only $2.49!
  3. If you have brand loyalty for certain products, you can occasionally find them for a much lower price at a no-frills grocery. I recently saw Softsoap hand soap bottles for $0.99, compared to $1.49 at a Wegmans supermarket.

Disadvantages

  1. Some discount grocery stores do not accept credit cards. This is no big deal if you normally pay for your groceries with cash or a debit card, but my husband and I buy almost everything with cash back credit cards in order to rack up rewards points.
  2. Discount grocery stores have a smaller selection than a supermarket, and you’ll likely need to visit a supermarket afterward to find remaining items on your list. Are you looking for tarragon or brie? A supermarket is most likely your best bet.
  3. Discount retailers generally don’t stay open as late as a supermarket, so you have to plan your shopping accordingly.

Safety Concerns

Chances are, most bargain groceries are perfectly safe. But keep an eye out for these warning signs:

Damaged Cans and Jars

The U.S. Department of Agriculture warns against eating anything from cans that are leaking, rusting, bulging, or badly dented. The same goes for jars that are broken or have bulging lids. Otherwise, you might get a deadly disease or food poisoning along with your dinner.

Dates on Food Packaging

The dates on food packages are slightly nebulous. Here’s how the USDA defines them:

  • Sell By: Buy the product before this date.
  • Best if Used By: This is a recommendation for best quality, but the food is still safe to eat after the date has passed, within reason.
  • Use By: Federal law requires this date for baby formula or baby food – never give an infant formula past its “use by” date. But for other products, “use by” is similar to “best if used by.”

grocery store aisle

What to Buy and What Not to Buy

You may want to avoid purchasing certain staples at a discount grocery store. This decision comes down to personal preference and the quality of the merchandise you find.

  • Produce. I’m extra-cautious about bargain-store produce. The first time I visited the Bottom Dollar Food store that opened near my house, the avocados were softer than the pillows on my couch. Ew.
  • Meat. Bottom Dollar’s cheap steaks excited me at first, even though they were slightly discolored and thinner than what I normally buy. Regardless, I gave them a try. My husband requested that I not buy steak from that store again.
  • Dairy. This might be a matter of personal taste, but if you’re uncomfortable with dairy products near or even past their expiration date, stick to the supermarket.

Discount Grocery Shopping Tips

  1. Create a grocery list and head to the discount store first. If you need two boxes of cereal this week, you may as well get them for half-price.
  2. Shop when you’re not in a rush. You’ll need extra time to examine sell-by dates and assess the freezer burn on that chocolate cream pie.
  3. See something you’ll use later but don’t need right away? Stock up if you have the space and will consume your finds while they’re still safe to eat. The inventory at discount grocery stores changes all the time, so it might not be there next week.
  4. Be willing to try a few new things. You might discover a new favorite food – but don’t stock up on something you’ve never tried just because it’s cheap. Groceries are never a good deal if they’re just going to sit unused in your pantry.

Final Word

Cut-rate grocery stores are a great way to save money on your food bill as long as you’re willing to keep an open mind and take the time to closely examine what you’re putting in your cart. As long as your pantry is stocked with food that tastes fine, who cares if the packaging isn’t pretty? You can eat healthy on a budget, regardless of how much you pay.

Have you discovered any tricks for saving money while food shopping? What are your thoughts on discount groceries?

(photo credit: Shutterstock)

Rebecca VanderMeulen
Rebecca VanderMeulen loves thrift shops and the grocery-store clearance rack. She grew up in western Michigan and now lives in suburban Philadelphia with her husband and two cats. She is expecting a baby boy in 2012.

Related Articles

  • http://thesavedquarter.com/ The Saved Quarter

    I’ve been shopping at Grocery Outlet for years and have had no more trouble with the food than I have at regular grocery stores. There are regular items that I buy there, like cheese, cereal, and even some produce. They routinely have the best price on fresh herbs, carrots and celery, and bags of pears, which we eat a lot of!

    Milk is rarely close to or past date at our grocery outlet, but it can be frozen to extend its life if you find a great deal hovering on the date! I did that when Horizon Organic 1/2 gallons were marked down to $.50 each. I bought 8 of them and froze them. Defrosted and poured over cereal, they lasted a few months and tasted just fine.

    One option that you didn’t mention is bread outlets. We have one locally that has name-brand bread close to its expiration date for pennies on the dollar. I routinely buy a month’s worth at a time and freeze it. I can easily get 10 loaves (or pita, tortillas, English muffins, etc.) for under $10 and we’re all set for PB&J for the month. Usually one loaf at the grocery store is $4, so it’s a great way to save.

  • Jessica

    I work and shop at Aldi and there has only been one product I’ve tried that I didn’t like and returned it. I always thought that our cereal was just as good as name brand items and then I found out that our cereal is General Mills cereal in Aldi packaging. And you can’t beat the price! Also, our meat is Tyson meat. It’s a great price for the same product you buy at big chain stores. I won’t lie, it took me a few months to start shopping there but now I do and I’m not afraid to try anything because of the awesome return policy. Now I shop there all the time and get everything from produce to meat to chips there. You can’t go wrong with it.

  • Marcyanshen

    How do I stop MC from posting on my facebook? I don’t want it all on my facebook!

  • Steve Dupree

    One disadvantage I’ve found is location. The Grocery Outlets around here are in not-so-nice neighborhoods. It makes sense – I’m sure the rent there is cheaper. I’m nor afraid going into those neighborhoods or anything. I just don’t often go into them in my normal course of business.

  • Rebecca VanderMeulen

    Thanks for the comments, everyone. And thanks for mentioning the bread outlets, Saved Quarter. My mom used to shop at one all the time when I was a kid.

    I’m not familiar with the West Coast, but where I have lived in Pennsylvania I’ve found discount grocery stores in “not-so-nice” neighborhoods, near middle-class housing developments and in semi-rural areas. Depends on where you live, I suppose.

  • Jkm343

    Grocery Outlet in Hillsboro Or, is wonderful.Recently remolded,with a great selection of local veggies, and local milk. Local is important to me when I can’t get to outdoor market. yes the cheese and wine department is worth the ten minute drive. With the remoldel it stopped feeling so grubby and salvage.
    My mother was an expert shopper, and we worked as a team for years. since GO upscaled a bit I never shop at Winco, never at wamart, and decreased my safeway runs. Safeway had the best produce until recently.
    I hear the GO in North portland has wine tasting time.
    check it out.

  • Teresa

    I have started shopping at Aldi’s. I have found they are cheaper on most items and I don’t have to spend time cutting coupons. Many of their items say “compare to _____ brand” on the packaging. They are good at competing with some of the top name brand food items. In general, learning to cook at home will bring you the most savings and get you closer to your financial goals!

The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers.
Advertising Disclosure: We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.
Links monetized by VigLink
Close