The inventory from the Simon Delivers shutdown is making its way down the, well, food chain. When the grocery delivery trucks made the last round of deliveries at the end of July, the company still had more than 10 semi-truck trailerloads of groceries in the warehouse.
Enter Mike Abernathy of Mike’s Discount Foods in Fridley, 763-572-2254, and Hilltop, 763-502-8999. Abernathy bought the inventory, which is in pristine condition, but is selling it for about 30 percent less than at a mainstream supermarket. Prices are below wholesale, said Abernathy, including frozen dinners and other groceries. The sale began Sunday. Only the perishables such as milk and cheese are gone.
Here’s an excerpt from a column about salvage grocery stores that I wrote last year.
So Low in Minneapolis and Mike‘s grocery outlets represent only a fraction of competitors for the Twin Cities food dollar, but they’re growing for a good reason. Consumers report that they view grocery store prices as the most inflationary, more so than home furnishings, home electronics and drugstores, according to a national study of 812 consumers conducted in 2007 by ChainStoreAge.com and Leo J. Shapiro and Associates in New York City.
  “The Twin Cities went a long time without very many low- priced stores,” said David Livingston, of DJL Supermarket Research in Milwaukee. Now it appears we’re playing catch-up. Aldi, Costco, SuperTarget and Wal-Mart SuperCenter are all adding stores in the Twin Cities in 2008. Aldi, which started with an Inver Grove Heights store in 2003, now has 20 Twin Cities locations and plans to add three to five stores each year for the next several years, said Cathy Misko, vice president of the Minneapolis division.
Abernathy, who owns Mike‘s stores in Fridley and Hilltop,
said that they always do better in a down economy. His customers save 50 percent or more than at full-priced stores on products that are near their expiration, produce such as smaller watermelons or items that have been discontinued or have packaging or label changes. (Note: the Simon Delibvers items are not at or near expiration.) Most, though, come for staples: meat, produce, bread and canned goods. Most of Abernathy’s products are name brands, an
advantage he claims over Aldi, which stocks mostly private-label items.
  Still, some new customers might recoil at buying perishables near or past the expiration date.  Products near or at their expiration date aren’t usually a food safety issue unless the packaging has been compromised, said Heidi
Kassenborg, acting director of the Dairy and Food Division at the Minnesota Department of Agriculture. Milk that has curdled might be undrinkable, but it’s not unsafe, she said.
  In general, avoid any bulging containers and cans with dents on the seam or any item in which packaging is irregular or broken.
Kassenborg said that food salvage stores in Minnesota have not been cited for any significant safety concerns since she started in 2003.
  Tuesdays continue to be Abernathy’s busiest day. That’s the day senior citizens get an additional 10 percent off, so business doubles. “Older customers tell their middle-aged kids where they got a great deal on blueberries,” he said, “and pretty soon they’re shopping here, too.”
 WHO HAS THE LOWEST PRICES?
  Meat: Costco and So Low. Many readers rave about the quality and price of meat at Costco (ground beef with 12 percent fat, $2.39 per pound; boneless chuck, $3.29 per pound; boneless pork loin, $2.69 per pound, and a cooked rotisserie chicken at $4.99 for 3 pounds).
(Prices checked July 21, 2007.) So Low‘s prices were slightly higher than Costco’s on ground beef and boneless chuck but lower for boneless
pork loin.
Staples and snacks: Aldi. Its selection is much smaller than a
typical supermarket’s, but prices on staples such as oil, salt,
flour, sugar, pasta and canned goods are hard to beat. Salted
snacks and cookies are mostly private label, but the prices are 30 to 50 percent less than name brands. The Fit & Active line has fewer calories.
  Produce: Mike‘s Discount Foods. Prices are 30 to 50 percent less due to surplus from another store’s ad, inconsistent sizing or slight over-ripeness.
  Store brands: Cub Foods . Many store brands now equal or surpass the name-brand quality, according to Consumer Reports. Cub sells cheaper store brands in hundreds of categories using names such as Aloft, Home Best, Awesome, Carlita, Nature’s Best, Cub Foods and Our Own.
  Prepackaged specialty foods and organics: Trader Joe’s. The produce selection is sparse and the stores are small, but prices on specialty items and organics are much less than Whole Foods.Â