Despite posting a net loss in Q1, Grocery Outlet is being called the retailer to watch for the rest of 2026 as its traffic numbers continue to grow steadily. The chain's opportunistic buying model — which relies heavily on surplus and closeout inventory — is resonating with inflation-fatigued shoppers looking to stretch their grocery budgets. That traffic trend is a meaningful signal for the broader retail landscape.
For produce suppliers and category managers, Grocery Outlet's growth matters because it represents a growing channel for moving surplus or off-grade product that might otherwise go to waste. As grocery inflation runs hot, value-focused banners like Grocery Outlet tend to see accelerated traffic gains — and fresh produce is increasingly part of their offer.
Watch how Grocery Outlet's produce category strategy evolves through the back half of 2026. If traffic keeps climbing, more suppliers may find it worth building a dedicated relationship with the chain.