Trader Joe's

Trader Joe’s

Abstract

While vacationing in the Caribbean, founder “Trader” Joe Coulombe discovered a way to differentiate his 7-Eleven-style corner stores from those of his competitors. Joe observed that consumers are more likely to try new things while on vacation. With a nautical theme and cheerful guides sporting Hawaiian shirts, Joe transformed his stores into oases of value by replacing humdrum sundries with exotic, one-of-a-kind foods priced persuasively blow any reason competitor.

For over 50 years, Trader Joe’s has competed with such giants as Whole Foods and Dean & DeLuca. So what is its recipe for success? The company applies its pursuit of value to every facet of its operations. Buyers travel all over the world in search of great tasting foods and beverages. By focusing on natural ingredients, inspiring flavors, and buying direct from the producers whenever possible, Trader Joe’s is able to keep costs down. The chain prides itself on its thriftiness and cost-saving measures.

Trader Joe’s sells twice as much per square foot than others supermarkets. Most retail mega- markets, such as Whole Foods, carry between 25,000 and 45,000 products; Trader Joe’s stores only carry around 4,000. But this scarcity benefits both Trader Joe’s and its customers.

Traders Joe’s connects with its customers because of the culture of product knowledge and customer involvement that its management cultivates among store employees. Trader Joe’s considers its responsible, knowledgeable, and friendly “crew” to be critical to its success. Therefore, they nurture their employees with a promote-from within philosophy. Each employee is encouraged to taste and learn about the product and to engage customers to share what they have experienced.

For some shoppers Trader Joe’s had a new nickname: “Traitor Joe’s”. Greenpeace’s recently released seafood sustainability scorecard. Greenpeace’s study, Carting away the oceans: How grocery stores are emptying...