Yes, the obligation of Sadaqah al Fitr can be fulfilled in this way by using the amount of cash that is obligatory to be given as Sadaqah al Fitr to buy grocery items for a needy person.
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دلائل:
رد المحتار: (364/2، ط: دار الفکر)
وما لم ينص عليه كذرة وخبز يعتبر فيه القيمة۔
Allah the Almighty knows best,
Darul ifta Al-Ikhlas, Karachi.