Online discount grocer Martie expands nationwide

Online discount grocer Martie, which first launched in November 2021 with $3 million in funding, is now bringing its business nationwide this week.

The startup said its expansion to 48 contiguous U.S. states will also require the opening of two more warehouses — one on the West Coast and one on the East Coast — both by 2024.

Martie first started in California, however, it moved its warehouse to Texas in April to set itself up for nationwide shipping from a central location. Over the summer, the online discount grocer extended shipping to 34 U.S. states, including Alabama, Mississippi, Wisconsin, and Ohio. 

The Martie model leans into deep percentage cuts on surplus shelf-stable groceries, selling heavily discounted surplus groceries and household items. The company works with CPG brands and producers to stock surplus pantry goods — primarily items that would otherwise be thrown out due to overstock, package changing, or seasonality — and in turn, sells them online directly to consumers at up to 70% off retail.

With inflation continuing to hit consumers hard when it comes to essentials, Martie is positioning itself as a solution for those looking to save money on food costs. 

Recent data showed that 94% of consumers are still worried about the cost of food, especially on the heels of another fuel price increase, which typically translates to higher prices for the cost of groceries. According to Martie, its customers save an average of $54 per order or $600 per year.

Related:Discounted online grocery store Martie launches in Texas

In an interview with Modern Retail, Martie declined to share specific growth numbers but said that it sends out “hundreds of orders” each day, according to founder and CEO Louise Fritjofsson, with 47% of users returning month over month.

All of Martie’s boxes leave the warehouse “at a profit,” Fritjofsson said, which she attributed to the fact that Martie does not sell frozen or fresh groceries.

“That makes our handling, our freight, our storage, our shipping to consumers a lot more efficient,” she said. “It has to do with liquidation. We get really high gross margins on the items that we handle. And it also has to do with how we think of our inventory… [We have] a bit more leeway in terms of adding more health and beauty, household, kitchenware items that will drive up the average unit retail.”

Right now, Martie is focused on catering to as many customers as possible via its expanded distribution footprint, working with the 3PL partner XPDEL to do so.

Martie first launched with over 400 SKUs, and requires no subscription or membership, according to TechCrunch. 

That said, while online grocery shopping initially took off during the global pandemic, a new report shows customers’ online shopping preferences rose for more national retailers like Walmart (56% to 59%) and online-only choices like Amazon (26% to 28%), however, fell for third-party apps like Instacart (18% to 13%).