Is working with food liquidators the secret to increasing grocery store profits?
Grocery stores are known for having incredibly thin profit margins. And even with the general cost of food going up, those gains are a lot more likely to be passed on to food manufacturers than the retailers that stock the products on their shelves.
For those in the grocery business, figuring out new ways to boost profit margins is important, especially if they’re located in an area with a lot of competition. One of the best solutions: working with wholesale food liquidators, a specialized type of food seller that helps groceries and other businesses sell off excess food and turn a profit on products that would have otherwise gone to waste.
What Are Food Closeout Liquidators?
A food liquidation company buys excess food, beverages, and lifestyle products from grocery stores and other food retail businesses and sells them to secondary outlets.
There are a number of variables involved in this process, all of which highlight the need for a third-party liquidator that can handle these types of sales. For starters, running a grocery store is a big job with a lot of moving parts, and the individuals in charge generally don’t have the time, labor capacity, or expertise to take on food liquidation as well. They likely also lack the extensive, global networks that food liquidation companies maintain, and that make it a whole lot easier to find buyers for closeout food products.
Among the products that these companies can help grocery stores liquidate include:
- Overstocked items
- Out-of-date items
- Discontinued items
- Items that have undergone packaging changes
- Unsold seasonal items
Many liquidators specialize in certain types of products, though a comprehensive food liquidation company can handle pretty much any excess product a grocery store has on hand, including perishables, freezer items, meat, dairy, and even pet food and cosmetics.
3 Ways Food Liquidation Services Benefit Grocery Store Profits
When it comes to food closeouts, liquidation companies like Marvell Foods are a valuable partner for grocery store operators.
For grocers, the primary goal of working with a food liquidation company is to offset lost profits due to products that, for one reason or another, cannot be sold through traditional channels. And there are several ways that liquidators help achieve this, including some that aren’t always so obvious. Here are three of them.
1. Boosting Profit Margins
When you’re running on such narrow profit margins, every amount you can save is a big win. Food liquidation companies offer a strategic alternative for reducing profit loss due to excess product, in turn helping grocery stores operate more efficiently and mitigate problems related to overstocking.
2. Reducing Storage Costs
It’s often the case that products end up in storage instead of a shopping basket. But storage isn’t cheap when you consider the space and energy required to maintain it (this goes double for freezer storage). By working with food liquidation companies, grocery stores greatly cut back on storage needs and get a better, more profitable solution for taking care of unsold products.
3. Minimizing the Impacts of Improper Inventory Management
Efficient inventory management is a must for running a successful grocery store. And while it’s rarely the case that grocery buyers intentionally overstock products, it’s a common occurrence that can have a major impact on profits. Enter liquidation companies, which solve issues related to overstocked inventory so that food retailers can rebound from the error without taking a big hit to their bottom line.
Work with Leaders in Food Liquidation
Marvell Foods has decades of experience working with grocery stores and other food retailers to sell off excess products and maximize profit potential. Please contact us to learn more about our food liquidation services and how we can help you minimize losses and maintain profitability in such a complex and competitive industry.