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Grocery Outlet (GO) Joins DoorDash to Aid On-Demand Delivery

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Grocery Outlet Holding Corp. (GO - Free Report) has been making efforts to enhance customers’ shopping experience. Recently, GO announced its partnership with DoorDash (DASH - Free Report) to provide on-demand grocery delivery from more than 398 locations across the nation. The areas include Pennsylvania, New Jersey, Maryland, California, Washington, Oregon, Idaho and Nevada.

This partnership enables DoorDash’s customers to order groceries on demand from Grocery Outlet’s local stores. They can order through the DASH marketplace app or website, fulfilling all their grocery and household requirements with savings. Also, DashPass members can get a 30% discount on the Grocery Outlet order of $40 or above, with respect to the Summer of DashPass five weeks of DashPass member-only offers. Customers can directly buy their favorite name-brand products at reasonable prices from GO via DoorDash.

We note that the participating stores will be available on DashPass, DoorDash’s membership program, charging members $0 delivery fees from several restaurants, grocery and convenience stores throughout the nation. DashPass members can avail the benefits on the eligible orders of $35 or more from Grocery Outlet. GO offers various grocery items with fresh produce and meat, packaged goods, household supplies and much more.

What Else?

Shares of this grocery dealer have surged 46.7% in the past six months against the industry’s 7.7% decline. Grocery Outlet’s opportunistic purchasing strategy, marketing efforts, store-growth endeavors and e-commerce initiatives to widen customer reach have been aiding its performance for a while. GO’s flexible sourcing and distribution business model, which helps it offer products at exceptional values, bodes well.

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Additionally, Grocery Outlet is piloting a mobile app in Washington State, whereby customers can view trending and top items in stores on a real-time basis and access curated product recommendations based on their preferences. We believe that this currently Zacks Rank #2 (Buy) player’s compelling value proposition will continue to encourage customers to revisit stores and increase basket sizes. In terms of offerings, GO sources trendy products based on consumer preferences. GO’s expanded product offerings, more “WOW!” Deals and increased customer awareness will help augment sales.

Don’t Miss These Solid Bets Too

Some other top-ranked stocks are The Chef's Warehouse (CHEF - Free Report) and General Mills (GIS - Free Report) .

Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 355.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chef Warehouse’s current financial-year sales suggests growth of 40.7%from the year-ago reported number.

General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2. GIS has a trailing four-quarter earnings surprise of 6.5%, on average.

The Zacks Consensus Estimate for General Mills’ current financial-year sales and earnings per share suggests growth of almost 2% and 1.5%, respectively, from the corresponding year-ago reported figures.