Half-priced iPhone? Inside the Mission’s hidden shop full of major bargains

Piles of boxes are scattered throughout the store as customers tear them open. Some are stamped with Amazon’s familiar emblem, while others read in bold font: “Made in China.” The air buzzes with chatter and the chirp of barcode scanners as shoppers weave around one another through crowded aisles. They move from box to box, bin to bin, searching for hidden treasures at major bargain prices.

Barato Barato is a new outlet that opened in San Francisco’s Mission District in July, attracting hundreds of low-income, immigrant and Latino shoppers each day with its deep discounts on overstock and returned items from major retailers such as Amazon, Walmart, Target and Kohl’s.

Its pricing system is simple: you can buy anything for $6 on Mondays, and by Thursdays, you can buy things for $1. But Fridays are their busiest days since the store gets replenished with newly-arrived inventory. Everything sells for $12, except for big-ticket items like iPads, which can sell for half the retail price.

Located at 2137 Mission Street, the building once housed El Tiangue, a city-funded storefront created during the 2023 winter vending ban to support displaced street vendors. The project was meant to function like an indoor flea market and cultural hub, but despite outreach and events, foot traffic remained low. It quietly shut down in 2024.

Now, the space is leased by Yemeni business owner Adel Alghazali, 54, who also owns Mi Tierra Market and Aramex Restaurant near the 16th Street BART Plaza. He’s converted it into a chaotic scene for consumerism and cheap deals. Alghazali estimates that about 90% of his customers are Latino, so he blends Arabic and Latino influences. His next project, Yamex, a Yemeni-Mexican perfume store, which is slated to open in January. “We’re going to blend that Latino-Arabic taste,” he said.

For now, Barato Barato is his latest venture to open, and it appears to be booming. “One day I was thinking about all these products… where does it go?” he said. “Then I found out a lot of them get shipped overseas. I thought, we can use it here, too.”

Corporate retailers offload their excess inventory through liquidation companies such as B-Stock and Liquidation.com. These companies buy truckloads of overstock, then auction them to buyers like Alghazali. “Storage costs a lot of money, so they’d rather sell it cheap than keep it.”

Sarug Argueta, 48, a Mission resident, says he’s been coming since it first opened for the quality and prices. “The best thing I found were perfumes that sell for $165. I found a pack for $10,” said Argueta, referring to one called ‘Daisy,’ from Marc Jacobs, which can retail for up to $165 at other stores.

Inside, the chaos feels almost like a treasure hunt: piles of boxes, bins filled with clothes in original packaging, an aisle stacked with shoes, and contemporary electronic devices. On any given day, shoppers might uncover chargers, bedsheets, toasters, coffee makers, or even an iPhone or iPad.

Nestor Penera, who’s shopped here since it opened, bought a brand new iPhone 16 for $600 a couple of weeks ago. Panera ended up sending it to a family member back home in Mexico, rather than keeping it. Friday mornings are usually the days he shops to take advantage of great deals for $12. But there is one key detail: “You have to come early,” he said.

According to Alghazali, he has no clue what’s inside those boxes when he buys them. He said customers often open boxes, sometimes breaking them or misplacing parts, but that’s just part of the disarray during peak hours. From Walmart alone, he gets 15,000 undisclosed items in a single delivery. He admits that sometimes he’ll curiously look through the boxes to see if there’s anything he likes with his children. “There’s so many items, you don’t even know about it.” 

With the cost of living soaring in San Francisco and economic uncertainty under President Donald Trump’s administration, Barato Barato has become a rare opportunity for residents to stretch their dollars in the city. Zela Herrera, 70, a frequent shopper, dug through a pile of plastic-wrapped clothes. “Everything is so expensive,” she said, referencing the high cost of basic needs like eggs and milk. “The prices are modest, they’re low. Today it’s one price, then it’s another.” 

Alghazali believes stores like his meet a real need. He says the reception has been positive and is working towards opening up two additional stores in the neighborhood. From his perspective, businesses like this one will help bring back more foot traffic to San Francisco. 

His next challenge is trying to contain the cluster of boxes that pile up every day. Employees are constantly breaking down cardboard boxes and piling them in the back or the front. There simply isn’t enough space, he says. But as customers continue trickling in, he’s going to keep operations steady. “We don’t buy to keep.”

He then confidently credited his success to his upbringing. For generations, his parents have run retail stores overseas. “Trading is my hobby. The only thing we do is trading.”