A new Grocery Outlet is coming to Oakland, Calif.
OAKLAND, Calif. - Bay Area-based discount supermarket chain Grocery Outlet is set to open a new location in Oakland next week.
What we know:
The highly-anticipated store will open at 301 E. 18th St. near Lake Merritt, taking the space of a Walgreens that closed at that location last year.
Grand opening celebration
The chain said the grand opening event will be marked with a ribbon cutting ceremony, giveaways, and other celebratory activities.
The first 100 customers will receive a gift card for "mystery amounts" of up to $500, the chain detailed in a news release.
"Customers can also enter to win $1,000 in free groceries from October 22 to November 20," the release said.
The store will be independently owned and operated by Jorge Cossio, according to the company, which is headquartered in Emeryville.
‘Bargain market’
Big picture view:
With the retailer advertising extreme values and savings with every trip, the store is a welcome addition to many residents in the neighborhood who are looking for bargains as a way to tighten their finances.
Recent figures from the Bureau of Labor Statistics show overall U.S. food prices increased by 2.7% over the 12-month period ending in August.
Dig deeper:
Economists and agricultural experts warn that the skyrocketing diesel prices will roll over to everyday goods like groceries.
High diesel costs are putting a strain on farmers who depend on the fuel for their tractors and other field equipment. The soaring price of diesel is also putting a squeeze on the trucking industry that transports agricultural freight.
Grocery Outlet, which calls itself the "bargain market," in its commercial jingle, said it's able to offer customers low prices through its sourcing strategy.
"Most products are sold at 40–70% less than regular retail prices," according to Grocery Outlet's website.
The company said it is one of the largest opportunistic buyers in its industry.
"The company capitalizes on buying overstock and closeout items. This approach ensures a dynamic selection of products in each store," the chain explained.
Bay Area openings, closures nationwide
The opening of the Lake Merritt store will come after Grocery Outlet announced a wave of nationwide store closures earlier this year.
In March, the company said it was shuttering 36 underperforming stores in California and around the country.
Local perspective:
No Bay Area stores were on that list.
Instead, there were plans to expand in this region, with the Lake Merritt location among the new stores that were under construction.
In August, a store opened in San Francisco's North Beach neighborhood in a space previously occupied by Safeway.
SEE ALSO: Grocery Outlet uses facial recognition technology at some Bay Area stores to combat shoplifting
What's next:
A new Grocery Outlet is going up in Moraga’s Rheem Shopping Center. That store’s opening has reportedly been delayed until early next year.
The new Lake Merritt location will be the second Grocery Outlet in Oakland.
A longtime store has been operating on Broadway at 29th Street.
Grocery Outlet's grand opening event for its Lake Merritt location is scheduled for Oct. 22.
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New Grocery Outlet in SF North Beach
A New Grocery Outlet has opened its doors in the location previously occupied by Safeway