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Is a Grocery Outlet Cheaper than Target? A Comprehensive Price Breakdown

5 min read

According to a Consumers' Checkbook price survey, Grocery Outlet prices were found to be 22% lower than the all-store average in some areas. But when you pit these two very different retailers against each other, is a Grocery Outlet cheaper than Target?

Quick Summary

This article compares Grocery Outlet and Target on pricing, product consistency, and overall value. Learn about their different business models to determine which store will save you the most money on your weekly shopping trip.

Key Points

  • Business Models Dictate Price: Grocery Outlet uses an opportunistic, overstock buying model for deep discounts, while Target uses a traditional retail model with consistent, competitive pricing.

  • Grocery Outlet Offers Higher Potential Savings: For specific, random finds, especially organic or specialty items, Grocery Outlet can be significantly cheaper, with reported savings of 20-70%.

  • Target Offers Reliability and Consistency: Target is better for shoppers with a fixed list of weekly essentials who prioritize a predictable inventory and a one-stop-shop experience.

  • Produce Quality and Price Differ: Grocery Outlet's produce can be cheaper but is less consistent in quality and freshness compared to Target's more reliable offerings.

  • The 'Treasure Hunt' vs. The List: Shopping at Grocery Outlet is a "treasure hunt" for deals, whereas Target shopping is more structured and predictable.

  • Hybrid Shopping is the Best Strategy: Combining shopping trips to both stores—using Grocery Outlet for deep discount finds and Target for consistent staples—can maximize overall savings.

In This Article

Comparing the Business Models

To understand which store offers better prices, it's crucial to first examine their distinct business models. Grocery Outlet operates as an extreme-value, opportunistic buyer, whereas Target functions as a traditional department store with a well-stocked grocery section.

The Opportunistic Model: How Grocery Outlet Gets its Deals

Grocery Outlet's business is built on purchasing surplus inventory from manufacturers at deeply discounted rates. This includes items like:

  • Discontinued products
  • Overstocked inventory
  • Products with updated packaging
  • Items close to their 'best-by' date

This purchasing strategy allows Grocery Outlet to pass significant savings, often up to 40-70% off retail, to the consumer. The trade-off is an inconsistent and unpredictable selection. Shoppers call it a "treasure hunt" because you can never be sure what you'll find, or if it will be there on your next visit. The assortment varies by location and timing, meaning you can't rely on Grocery Outlet for every item on a fixed weekly shopping list.

The Consistent Retailer: Target's Grocery Strategy

Target, by contrast, operates on a much more traditional retail model. Its strategy is focused on providing a wide, consistent variety of products across multiple departments, including a reliable grocery section. While not an extreme discounter like Grocery Outlet, Target offers value through several avenues:

  • Private Label Brands: Target's house brands, like Good & Gather and Market Pantry, are priced competitively against national brands.
  • Sales and Promotions: The Target Circle loyalty program and weekly ad deals provide regular opportunities for savings.
  • Convenience: The predictability of a stocked inventory means shoppers can consistently find their favorite items and build a reliable weekly list.

Head-to-Head Price Breakdown

When we compare prices, the differences between the stores' business models become clear. For everyday essentials and predictable shopping, Target might surprise you, especially with its private label goods. However, for specific, high-end or organic items, Grocery Outlet's deals are often unbeatable.

Produce

  • Grocery Outlet: Can offer deep discounts on fresh fruits and vegetables, especially organic options. However, the quality and variety are inconsistent and you must inspect items carefully, as they can be closer to spoilage.
  • Target: Offers a consistently stocked and higher-quality produce section. While not as cheap as Grocery Outlet's best deals, the prices are competitive and the selection is reliable.

Pantry Staples and Name Brands

  • Grocery Outlet: The undisputed winner for random, brand-name clearance items. You might find premium pasta sauce, artisanal crackers, or specialty coffee at a fraction of the cost. For common staples like bread and milk, prices might be similar to traditional grocers.
  • Target: Reliable for staples and house-brand products. The price difference on basic pantry items might only be a few cents, but Target offers consistency and the convenience of getting all your items at once.

Specialty and Organic Products

  • Grocery Outlet: A fantastic destination for organic, vegan, and gluten-free products that are typically expensive elsewhere. Their NOSH section (Natural, Organic, Specialty, Healthy) is a primary reason many value shoppers visit.
  • Target: Offers organic and specialty brands, but at standard retail pricing. The selection is also generally more limited than what can be found at Grocery Outlet on a good day.

Comparison Table

Item Category Shopping Experience Price Advantage Drawback Winner (by category)
Produce Hit-or-miss "treasure hunt" Grocery Outlet Inconsistent quality/availability Grocery Outlet (for risk-takers) Target (for reliability)
Pantry Staples Unpredictable, varies week-to-week Grocery Outlet (for lucky finds) Can be unpredictable to find specific items It's a Tie
Specialty Foods Great for deep discounts on organic/vegan finds Grocery Outlet Availability is not guaranteed Grocery Outlet
General Merchandise Limited to discounted and closeout items Not applicable Very limited scope Target
Reliability Unpredictable selection Target Higher prices on specialty items Target

Making the Best Choice for Your Shopping Habits

Ultimately, deciding whether a Grocery Outlet is cheaper than Target depends on your specific shopping habits and priorities. For some, the thrill of the hunt and potential for massive savings outweighs the unpredictability. For others, the convenience and reliable stock at Target are more important.

Who Should Shop at Grocery Outlet?

  • The Flexible Shopper: If you don't mind planning meals around what's available and enjoy the surprise of finding a great deal, Grocery Outlet is the clear choice.
  • The Organic/Vegan Bargain Hunter: For expensive specialty diets, the savings on these items can be substantial.
  • The Split Shopper: Many frugal shoppers combine trips, getting the deep deals at Grocery Outlet and then filling in their list at a more traditional store like Target.

Who Should Shop at Target?

  • The List-Driven Shopper: If you rely on a specific shopping list and need to find certain brands and products every week, Target provides the consistency you need.
  • The All-in-One Shopper: If you prefer the convenience of buying groceries, home goods, and clothing in a single trip, Target's wide selection is perfect.
  • The Brand-Loyal Shopper: While Grocery Outlet has many name brands, Target is more reliable for finding your specific favorites week after week.

Conclusion

While a single shopping trip to Grocery Outlet might yield more savings on a few items, it's not a guaranteed winner for every household. For shoppers who prioritize predictable inventory and comprehensive selection, Target often provides a more reliable and complete experience. However, for the savvy and flexible shopper who is willing to hunt for deals, Grocery Outlet offers the potential for much deeper discounts, especially on organic and specialty goods. To truly maximize savings, the best strategy is often to combine trips, using Grocery Outlet for its opportunistic steals and Target for consistent pantry staples and everyday needs.

The Shopping Strategy: Combining for Maximum Savings

The most effective approach is often a two-store strategy. Start your week at Grocery Outlet, armed with a general idea of meals but an open mind. Load up on the deeply discounted, high-quality items you find, like premium cheeses, organic produce, or specialty snacks. Afterward, head to Target to purchase the specific items you couldn't find or that are better priced via its private label brands or weekly deals. This method maximizes both your savings and the predictability of your shopping. For example, a shopper might snag a rare coffee brand at Grocery Outlet for 50% off and then grab their weekly supply of consistent pasta and eggs from Target, leveraging Target Circle offers for additional savings. This hybrid approach ensures you get the best of both worlds: extreme savings on opportunistic buys and reliable prices on staples.

Note: Prices and availability constantly change. The best way to know for sure is to compare prices on a few key items in your local area. The Kitchn provides great insight into the types of deals frequent shoppers find at Grocery Outlet.

What to Buy at Each Store

Best Items to Buy at Grocery Outlet

  • Organic and specialty dairy products
  • High-end coffee and teas
  • Gourmet sauces and condiments
  • Discontinued or seasonal brand-name items
  • Pet supplies and premium pet foods
  • Craft beers and specialty wines

Best Items to Buy at Target

  • Store brand (Good & Gather) basics like pasta, flour, and sugar
  • Consistent weekly produce and meat supply
  • Household goods and cleaning supplies
  • Toiletries and personal care items
  • Items for which you have Target Circle offers
  • Baby and children's products

Frequently Asked Questions

Grocery Outlet buys inventory from manufacturers at significant discounts when products are overstocked, have new packaging, are discontinued, or are close to their 'best-by' date. This allows them to sell items at a much lower price than a conventional retailer.

Not necessarily. Much of the inventory comes from reputable brands. However, since many items are close to their 'best-by' date, they may have a shorter shelf life. Shoppers should inspect perishable items carefully before purchasing.

It is possible, but it is not recommended for a fixed list. Because the stock is unpredictable and constantly changing, you may not find every staple you need. It is best used for supplemental shopping and finding deals.

No, product availability at Grocery Outlet is not consistent. Due to its opportunistic buying model, items appear and disappear quickly. This is a significant difference from Target, which maintains a reliable, standard inventory.

The best strategy is to embrace a hybrid approach. Start by checking Grocery Outlet for significant deals on specialty or organic goods. Then, go to Target to pick up your consistent weekly staples and household items, taking advantage of their regular sales and loyalty programs.

Yes. While Grocery Outlet is almost always cheaper on its specific deals, Target can sometimes be cheaper for certain basic staples, especially if you use Target Circle offers or compare house-brand prices. Some price surveys have shown that even Target's average prices have been competitive.

NOSH stands for 'Natural, Organic, Specialty, Healthy.' This section is a major draw for shoppers, as it often contains expensive organic, vegan, and gluten-free items at highly reduced prices, making it a great place for health-conscious shoppers to find bargains.

References

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice.