Grocery Outlet Announces Launch of Free Groceries for Life Sweepstakes

Rhea-AI Summary

Grocery Outlet (NASDAQ: GO) has announced its Free Groceries for Life sweepstakes, running from January 8 to March 31, 2025. The promotion will select 32 winners in April, offering prizes including free groceries for life, one year, or one month.

Participants can enter through the GO Mobile App by entering their phone number at checkout or showing their app to cashiers. The number of entries varies based on purchase date, amount, and basket items. The grand prizes include two lifetime grocery rewards (worth $240,000 each), ten one-year grocery prizes ($6,000 each), and twenty one-month prizes ($500 each).

The sweepstakes is open to residents aged 18 or older in California, Delaware, Idaho, Maryland, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, and Washington. No purchase is necessary to participate, and entries can be submitted through the company's website.

Positive

• Marketing initiative to drive customer engagement and app adoption
• Potential to increase store traffic and sales during Q1 2025
• No-purchase-necessary structure reduces legal risks

Negative

• Significant prize liability of approximately $540,000 in total rewards
• to 10 states, excluding potential market expansion areas

Insights

Marketing Strategy Analyst

This sweepstakes campaign demonstrates sophisticated customer acquisition and retention strategy. The lifetime value proposition of $240,000 for top winners creates significant buzz potential, while the tiered prize structure ($500 monthly cards) maintains broad appeal. The campaign cleverly drives mobile app adoption - a important digital transformation element for traditional grocery retailers.

The multi-state promotion spanning 10 states aligns with GO's expansion strategy. Timing in Q1 2025 is strategic, targeting post-holiday grocery shopping when consumer spending typically dips. The no-purchase-necessary entry method mitigates legal risks while the purchase-based bonus entries incentivize increased basket sizes.

However, the actual financial impact is relatively modest. With total maximum exposure of $492,000 in prizes ($240,000 x 2 + $6,000 x 10 + $500 x 20), this represents just 0.03% of annual revenues. The ROI potential through increased app usage, customer data collection and sales lift likely justifies this investment.

32 winners will be selected in April to win a range of prizes, including free groceries for life, one year or one month*

EMERYVILLE, Calif., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) ("Grocery Outlet" or “the Company") today announced its Free Groceries for Life sweepstakes, where customers can enter for a chance to win a range of prizes, including a lifetime of free groceries.*

“This sweepstakes puts the treasure in treasure hunt!” said Eric Lindberg, Grocery Outlet’s Chairman and interim President and CEO. “We are absolutely thrilled to be able to offer this Free Groceries for Life sweepstakes to our loyal shoppers and any new ones that come along.”

To enter, new and existing mobile app (“GO Mobile App”) users should enter their phone number into the point-of-sale pin pad or show their app to the cashier at checkout. The GO Mobile App allows shoppers to see what’s in-stock, stay ahead of exclusive offers and deals—including Grocery Outlet sweepstakes—while also customizing their shopping experience.

The number of sweepstakes entries participants receive will vary based on the purchase date, the purchase amount, and items in shoppers’ baskets. Grocery Outlet will randomly select 32 winners from all eligible entries in April. Winners can expect to receive one of many prizes offered during the sweepstakes, there will be:

• Two prizes of Free Groceries for Life, in the form of 12 $500 Gift Cards awarded annually for the winner’s life, up to 40 years. The Approximate Retail Value (“ARV”) of this prize is $240,000.
• 10 prizes of Free Groceries for a Year, in the form of 12 $500 gift cards. The ARV of this prize is $6,000.
• 20 prizes of Free Groceries for a Month, in the form of one $500 gift card.
  

The “Sweepstakes Period” begins on January 8, 2025, at 12:01 a.m. PST and ends on March 31, 2025, at 11:59 p.m. PST. No purchase or payment of any kind is necessary to enter or win, but participants must be 18 or older and a current resident of California, Delaware, Idaho, Maryland, Nevada, New Jersey, Ohio, Oregon, Pennsylvania or Washington. Void where prohibited.

Customers can see the official rules and enter without making a purchase by registering on the Grocery Outlet website: https://www.groceryoutlet.com/fgfl.

About Grocery Outlet

Based in Emeryville, California, Grocery Outlet is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. Grocery Outlet has more than 500 stores including Grocery Outlet stores in California, Delaware, Idaho, Maryland, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, and Washington and United Grocery Outlet stores, a closeout grocery retailer with stores in Alabama, Georgia, Kentucky, North Carolina, Tennessee, and Virginia.

*In the form of twelve $500 Gift Cards awarded annually for up to forty years. Approximate Retail Value (“ARV”) = $240,000.

INVESTOR RELATIONS CONTACT:
Christine Chen
(510) 877-3192
cchen@cfgo.com

MEDIA CONTACT:
Layla Kasha
(510) 379-2176
lkasha@cfgo.com

FAQ

What is the total value of Grocery Outlet's (GO) Free Groceries for Life sweepstakes prizes?

The total approximate retail value of all prizes is $540,000, including two lifetime prizes worth $240,000 each, ten one-year prizes worth $6,000 each, and twenty one-month prizes worth $500 each.

When does Grocery Outlet's (GO) Free Groceries sweepstakes start and end?

The sweepstakes runs from January 8, 2025, at 12:01 a.m. PST to March 31, 2025, at 11:59 p.m. PST.

How many winners will be selected in Grocery Outlet's (GO) 2025 sweepstakes?

Grocery Outlet will randomly select 32 winners in April 2025.

How can customers enter Grocery Outlet's (GO) Free Groceries sweepstakes?

Customers can enter by using the GO Mobile App, entering their phone number at checkout, showing their app to the cashier, or registering on the Grocery Outlet website without making a purchase.

Which states are eligible for Grocery Outlet's (GO) Free Groceries sweepstakes?

The sweepstakes is open to residents of California, Delaware, Idaho, Maryland, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, and Washington.