University City Grocery Outlet

A pair of West Coast-trained operators bring boldness and deals to Philadelphia retail.

The independently-owned University City Grocery Outlet in Philadelphia, PA, embraces its commitment to serve its neighborhood through great deals on quality products.

“We consider ourselves to be a T.J. Maxx of sorts,” says Jaelyn Deas, owner/operator. “You never know what you will find in the store. We change our opportunistic items weekly, but we carry standard need-based items. Our goals are to offer a treasure hunt experience for our customers and save them up to 70%.”

Deas, along with her younger sister Jaida, moved to Philadelphia from Long Beach, CA, and started the store just over a year ago after she came to Philly for a quick project with Grocery Outlet. “We wanted to create an inviting grocery store in this neighborhood.”

The 11,000 square-foot store dedicates around 1,900 square feet to produce, and produce is the first thing shoppers see when walking through the door. “We wanted an open and full department that was fresh,” says Deas. “We know finding a consistent produce department in this area is tough.”

BOLD MOVES

Creating high standards in produce was a priority from Day One for the store. “We know if you don’t have safe, quality produce, people will not want to shop,” says Deas. “We have seen our produce department grow by over 30% this year alone.”

Deas credits the operation for being courageous and making changes. “We are very bold and daring in our produce department, meaning we are unafraid to try new things. We want customers to enjoy the experience and get excited, and that doesn’t happen by keeping things the same. It requires some movement and a lot of planning, and we enjoy what we do.”

The produce department, on average, accounts for about 15% of store sales and carries close to 300 different items on a consistent basis. “We have changed our mix based on our customers’ needs and wants,” says Deas. “We want to be a store that our customers shop first and always, so we take requests seriously.”

The store typically brings in around 800 cases per week in produce, depending on the time of month and season. “We are a franchise model, so we do not actually do the sourcing, but we do control the distribution. Paying attention to time of year, what is coming in, and the quality of it is our focus.”

FLEXIBLE MERCHANDISING

The store merchandising philosophy revolves around not being confined by square footage. “We move things around based on shopping patterns and where it makes sense for our customers to pick it up,” says Deas. “Our merchandising plan is driven by season, sales turns and creating freshness. We want the department to feel cohesive and flow, but we also want to gently nudge our customers to feel compelled to walk through it.”

The store added eight ALCO tables to its initial set to increase variety and offer a more spread-out department. On the tables, the focus is what produce is in season and what is offered through a promotion, says Deas. “This gives us some merchandising room without overflowing the regular space. It also gives us the opportunity to turn product faster. A great deal only matters to us once it goes through the register.”

The department uses as much space as possible in its salad case and wet rack and focuses on keeping like items together. At the front of the store, a spot box highlights primarily berries or grapes. Plants and flowers are merchandised on tables and racks throughout the store.

The wet rack holds close to 100 SKUs of product. “Our wet rack is the first thing shoppers see when they come into the store, so eye appeal is everything,” says Deas.

“We work hard to create a department that feels full without hurting our business model and bottom line,” she adds. “Produce deteriorates very quickly, so once we see any item has lost its freshness, we would rather pull it off the floor than create an unclean department.”

SERVING COMMUNITY

The store caters to a unique demographic of Next-Gen and academics in University City, as well as a resilient community in West Philadelphia. “The college students and young professionals we serve may come and go with the school year and season, but our community in West Philadelphia does not change,” says Deas. “These are people who have lived here for many years, so we make a huge effort to include them as well as the younger consumers.”

Though the store promotes via social media, its main strategy is community involvement. “Our model is deeply rooted in community engagement, so we lead with that.”

Health and wellness is fundamental for the store. “We carry a huge assortment of organic, specialty, and healthy items, even outside of produce,” says Deas. “It’s great for business. It produces stronger margins for us, and it really moves our creativity.”

Deas and her team create endcaps and displays so shoppers can grab three things and head to produce and/or meat to complete a full meal.

“We do meal picks of the week where we highlight products across the store that end up in our pantries,” she says. “And I shop my own business, so I get excited working with my team to put together fun ideas we think our shoppers will want.”

Serving the community also means having knowledgeable employees. “It’s a blessing to have strong managers in the store,” says Deas. “They have all been with me for over a year and have seen the store change. They not only can tell you where something is, they are knowledgeable about our day-to-day processes.”

INSIDE THE STORE

Grocery Outlet
4301 Chestnut St., Philadelphia, PA 19104
267-866-0955
Hours: Mon – Sun: 8 a.m. – 9 p.m.