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Discount grocery stores like Discount Outlet serve as warehouses for products that larger grocery chains have rejected—often due to cosmetic issues, approaching expiration dates, or other minor imperfections. For instance, candy bars that retail for 75 cents at wholesale can end up being sold two for a dollar here. This unique model allows these stores to offer significant savings to customers while turning a solid profit for themselves.
Owners of Discount Outlet, Rose and Malik, shared insights about their pricing metrics, showcasing a three to four times markup on their goods. This model is immensely viable, especially given the ongoing demand for affordable groceries.