Video: Grocery shoppers turning to discount stores

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LYNNWOOD, Wash. – With the combination of high gas prices and high food prices, people are shopping around.

That means boom times for discount grocery stores.

The owner of Lynnwood's Grocery Outlet says a Sunny Saturday afternoon is usually a slow time, but not this week.

Grocery Outlet gets deals on overstocks, packing changes and the like, which allows them to pass those savings on. They also have fresh produce and consumers have discovered it.

Lori Hashimoto goes there to buy lunch supplies for her kids.

"I want to say, 25 percent less. Sometimes, more. It just depends," she said.

Increasingly these days, people are counting their pennies.

Shirley DeFord came to Grocery Outlet to stock up on pasta and other products that have a long shelf life. But she shops other stores as well.

"They've gone up, I noticed just in the last couple of weeks it's really hit me," she said. "Things that didn't seem to be making much difference, are now all of the sudden there's an extra 50 cents or 90 cents."

For store owner Larry Brown, business is spiking.

"I had a customer this morning, first thing this morning came in. Never been her before. I said, 'how did you find out about us?' He said, 'well, people are talking. And you have to find your savings somewhere.'"

This is said to be the worst period for food inflation in at least two decades.

KING

The owner of Lynnwood's Grocery Outlet says business is spiking.

Diesel prices have driven up the cost to truckers delivering the groceries. Demand for bio fuels has driven up the costs of corn and other crops that are not only food for people, but food for the animals that end up at the meat counter.

Deann Scheving has shopped at Grocery Outlet since the store opened three years ago.

"I pretty much buy what I still want," he said. "I think part of the problem, is that when people say there's going to be a shortage, people start stockpiling it and that makes it worse."