Grocery Outlet customers are increasingly spending their grocery wallet at the discounter, turning away from brands owned by Albertsons, including Safeway and Vons. The California-based discount grocer increased its share of supermarket wallet among customers to over 6% in the last week of August, up from around 5% a year earlier according to Earnest credit card data.
Grocery Outlet is part of a growing cohort of budget grocers opening in the US, which picked up momentum as inflation peaked. Consumers are also trading down across categories, which has benefitted grocers over restaurants, and discount labels over full-price according to Earnest data.
The impending merger between Albertsons and Kroger would have little impact on the markets in which Grocery Outlet currently operates.
