Retail Industry
Industry: Email Alert RSS FeedThe Trader Joe's difference
Shopper Report, The, Nov, 2009 by Mona Doyle
Trader Joe's delivers good taste and an unusual merchandise mix at a low price. They are especially strong on snacks, which reinforce the idea that anything that says Trader Joe's tastes good.
Trader Joe's shoppers give gift-bags filled with Trader Joe snacks, candy, and cheeses because they are fun and tasty and possibly unique. The Trader Joe's brand, which is on almost everything the store carries, stands for good taste as well as low price. It is less "me-too" than similar merchandise at other stores.
A young man standing in front of me in the checkout, having just paid for large boxes of Joe's O's and Joe's Honey Frosted O's, was struggling to fit them into his backpack. 1 said: "1 guess you like those O's. How do they compare with Cheerios?" He replied with a grin: "They taste better because they are cheaper."
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Some Trader Joe's products (Espresso Beans, Dunkers (cookies), and Green Tea) have loyal fans who praise their good taste and good value. They do a big business in the 24 ounce soup boxes, which stay fresh for days after being opened. Their frozen entrees and sides are a big success story. Ethnic frozen sides like biryani rice, special cuts of meat like oven-ready rack of lamb, and individually wrapped pieces of fish get word of mouth as well as social media referrals.
What supermarkets could copy from Trader Joe's:
From time to time, Trader Joe's reminds its customers that "our buyers seek out especially good products at good prices." In most supermarket chains, grocery buyers stay in the back of the back room. If they have a mission (besides getting the lowest price), customers don't know it. Useful learning from Trader Joe's could start with developing a mission statement for buyers.
What supermarkets probably shouldn't copy:
The folksy chatter used on merchandise and product signs throughout Trader Joe's stores would look phony in many supermarkets. Trader Joe's manages to achieve a "we 're with you " and "kid in a candy store " ambiance that is worth cultivating, but it's different from what many shoppers feel in supermarkets, where they focus on getting the best buys. When it's not mobbed, Trader Joe's is fun to shop, partly because the stores are small and offer fewer choices than big supermarkets. Small sizes at good prices help to explain their appeal to singles and small families. Most important, many of their shoppers feel that almost anything and everything at Trader Joe's is a pretty good buy - which means they can focus on things other than price.
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