OK, shoppers, this is where the power of many comes to play. An poster who used the name "Anon at MSU" called to our attention a recent Wall Street Journal article about salvage grocers. The thrifty student wonders if such a thing can be found around here? Let's try to help ....
First, if you don't know (and I didn't) a salvage grocery is also called a close-out grocery or outlet grocery. Some are known as "banana box" grocers (I'll explain shortly). These stores sell the "salvage" or "close-out" grocery items, including cleaning products and paper products. The difference is that often the packaging is damaged, such as a dented can or crushed boxes, or the expiration dates are close or recently passed.
According to the WSJ article, unless the item is dairy or baby formula, most states don't prohibit selling grocery items past their date. The article quoted a woman who has worked in the food distribution industry who said most products are fine past their expiration date. They also quoted a shopper who once bought breakfast cereal that was bug infested and who cautioned about checking dates closely. (Eewww.) But given the tight times, apparently a lot of shoppers are trying this out.
Emerging chains in this field are Sharp Shopper and Amelia's, both with locations in Pennsylvania, and Grocery Outlets, with locations in California and other West Coast states. They often buy surplus inventory direct from manufacturers, which may include new products that didn't sell well and are being dropped.
WSJ reports that individual grocery surplus outlets may buy goods from "reclamation centers" that take damaged and outdated items off the hands of regular grocery chains. Thease are repackaged in "banana boxes" for distribution, hence the name "banana box" grocery store. I Googled the phrase, and found several Web sites offering truckload sales of "banana box" inventory and trumpeting the value.
Aside from squeamishness you might have about the outdated issues, a downside of this new industry is, of course, less "reclamation" food available for groups such as food banks. But, these times are thrifty and apparently this is a new market sector.
So, shoppers: Anybody know of such a surplus grocery outlet in the Lansing area or elsewhere in Michigan? Let's see if we can help "Anon" at MSU save some $$.









One of my colleagues here at LSJ heard while reporting another story that a lot of dollar stores are carrying that "surplus" inventory of pre-packaged food items now. Of course, they don't only carry groceries and they don't carry products consistently.
I'll keep you posted if I learn more on this trend.
Posted by: Elaine | February 27, 2008 at 09:00 AM
Found this article while searching for similar stores in Michigan. I do know of one such store that I shop at quite frequently. Not close to Lansing but located in Sand Lake, Michigan, north of Grand Rapids,
It is called the Wooden Nickle. I recently bought organic Amish cheddar cheese for one dollar a pound (8 ounch packages cost 50 cents). This cheese was about a week past the best used date, but still very good. The wife bakes cakes for weddings and other events and we sometimes find 5 gallon pales of frosting for under 5 bucks. There are many food deals on other state store brands etc.
I would also like to find out more about similar stores in Michigan, and have even thought about starting my own.
Posted by: tightwad | March 21, 2008 at 01:10 AM
So where is this wooden Nickle??? There is nothing for the low income people in Michigan except to apply for food stamps!!!!!! where are these stores?????
Posted by: jess | May 05, 2008 at 09:55 AM
Vern's Wooden Nickel Inc
Address: 70 2nd St
Sand Lake, Michigan USA 49343-5103
Telephone:(616) 636-5795
This is somewhere off US 131 north of Grand Rapids. You could google a map.
I called the phone no. and was told they are a full grocery, with produce, frozen and packaged goods. When I asked about expiration dates, I was told some stock is past the expiration dates and some isn't.
Posted by: Peg | May 05, 2008 at 04:52 PM
Try these guys, they always seem to have food in stock when no one else does. www.BananaBoxWholesaleGrocery.com
Posted by: Zach | May 15, 2008 at 10:03 PM
We have a store called Blue Knight foods, in Bay city Michigan, I go there once a month and get great deals, you can also go to aunt millies thrift store and get bread and rolls for about 59cents
Posted by: margaret | May 26, 2008 at 09:07 PM
Does Costco count? I thought they were everywhere, but I guess I need to do my research.
Posted by: Closeout King | September 03, 2008 at 11:11 AM
There are several Discount/Salvage Food stores in my area run by AMish families.
There is one between Loomis and Clare MI. It is on Surrey Rd
You would go North on Loomis Road from US-10 to Surrey rd (about 4-5 miles, there is a big sign on the corner) Turn East on Surrey Rd and they are just down the road.
Recently one opened in Farwell, MI right on Main St.
THere is also one near Falmouth MI. SOrry I don't have the directions to that one. Stumbled on it by accident.
All of these are nice clean new stores.
Finding these stores has become kind of a hobby for us. :)
Posted by: Pam | September 17, 2008 at 09:10 AM
Don't forget about the Pepperidge Farms thrift store at the Kensington Valley outlet mall. They have great deals on crackers, bread, bread sticks, rolls, cookies, and lots of frozen foods.
Posted by: Julielyn | September 22, 2008 at 02:20 PM
Anything in or near LANSING? Anyone know?
Posted by: Sabrina | October 10, 2008 at 05:58 PM