How Is Trader Joe’s So Cheap and Popular? | WSJ The Economics Of

Trader Joe’s has been selling bananas for 19 cents each – for the past two decades. The grocery store offers remarkably fewer options for customers compared to other major supermarkets, and it’s consistently ranked highest for customer satisfaction.

WSJ’s Jaewon Kang breaks down why Trader Joe’s small selection of private label brands and trendy products, like orange chicken and everything but the bagel seasoning, keeps shoppers coming back for more.

0:00 How does Trader Joe’s continue to outperform other grocery store chains?
0:37 Why Trader Joe’s sells fewer but trendier products
2:32 How Trader Joe’s controls its own supply chain

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#TraderJoes #Grocery #WSJ

[jasprerph]

They did not mention the biggest reason why we love TJ !!! Customer service !!! So, many cashiers … there’s always someone to ask questions & friendly employees .. unlike Safeway & luckys where you would be lucky to have one cashier & one person at the deli ! 🤦🏽‍♀️

[vivsevs]

I love Trader Joe's, their branding/graphic design, and easy shopping experience, but I don't love getting my heart broken every time they discontinue a product I just got obsessed with ಥ◡ಥ

[plr]

Trader Joes was also the first store to apply the Paradox of Choice principle to its selection of items. Basically, people want choice, but if you give them too many choices they feel overwhelmed and ultimately choose nothing. Psychology has shown that 6 is the number of choices people like best. So that is what Trader Joes did. They gave customers six different choices of popular items such as pasta sauce. Their sales soared as a result.

[Jake_AC]

The banana pricing thing is misleading. They are likely a loss leader. I.e. they are intentionally willing to lose money on bananas, milk, and eggs because they know how important they are. It is a common practice in retail for these key items.

[zikamaster]

When you shop at trader Joe's you feel like the products are unique and not found in any other store because of authentic interesting labeling. Also its not just labeling, the products are actually healthier and taste really good and are often cheaper than in other stores. Just writing this comments makes me understand better why I love trader Joe's, especially their vegan/vegetarian section.

[dragonflychaser]

Hands down the best "customer service" consistently across every store I've been to in California. 2 days ago I was at the checkout and when they asked did you find everything you were looking (which by the way they ask EVERY SINGLE TIME) I casually mentioned that I didn't see Mango Tea on the shelves, the lady literally went to the screen behind her and looked it up for me and said it was seasonal. She went above and beyond and exceeded my expectation for receptive customer service. It's the little things that makes TJ so amazing

[lucybanta]

Plus everyone is friendly and helpful, not that that affects the prices but it sure makes it a more pleasant place to shop!

[MijoShrek]

The funny thing to me having grown up around the first trader Joe's locations. They were known to be more expensive at the time, they were like the very first whole foods type grocery stores. As they expanded they adapted to their general location and kept it simple by keeping it store locations small and not having a massive amounts of stock that's not even getting shopped like most big brick and motor retailers.

[deanaiello]

As a retired industry exec, this was a realistic portrait of Trader Joes. The two things I'd add is 1. that each trip can be one of discovery which keeps the consumer engaged. and 2. private label agreements may be with well known producers and may be equal or superior to the branded version; something not all retailers try to achieve.

[peterbogdanoff]

TJs has a podcast where they talk about their business practices in detail. For example, in one early podcast they explained how they have a committee that meets regularly to sample new food candidates and approve what should be put on the shelf. This is counter to many other retailers who receive payment from manufacturers to carry their products.

[nicholasbeck]

The first time I finally went to Trader Joes I was instantly converted. It's super affordable and their produce and meat is superb. I generally don't buy much packaged food but when I do from Trader Joes I'm always impressed by the quality of it. Their ingredient lists are small and the food actually tastes like it's not overly processed.

[echuynh]

Big fan of Trader Joe’s! Great products, friendly customer service at reasonable price.

[monikalenz]

Simply the best and easiest place to get groceries. No paper coupons, silly games, digital coupons, membership requirements or high end name brands. I've shopped at TJ since 1968! Cheaper, simpler, better!

[joelbolton]

I adore Trader Joes. I am in Northern VA, and my local store has a cashier that is the brother of one of my coworkers. We found this connection organically through conversation, and it brings me joy to come into that store, find the great variety of foods and CHEAP beer/wine, and I never have to deal with self checkout issues, a lack of cashiers, or a confusing labyrinth of isles. Generally, the people working there don't seem to be simply "putting on a happy face, " and that matters a lot these days to me. Its honest, and real. Some things may be cheaper at other stores, which is fine, but I am good with what is being charged for the quality I am receiving.

They rock, and I prefer them almost bar-none to other chains for this reason alone. For me, and seemingly for them, its very personal. Keep it going!

[kevins]

My husband is from California and introduced me to them via a store in Virginia. It was life changing…Almost fun to go shopping. We still haven’t gotten over them discontinuing the jarred mole sauce though. :). So good.

[SnowBalling]

When I go into Kroger's to get a few items, they plaster my face over security monitors, their buildings are massive and take a long time to go through. And sometimes there's long lines at the self checkout. They obsessively want to scan your cartons of water so they know you won't steal.

Trader Joe's feels more like grocery stores used to feel, they don't treat you like a criminal, their lines are fast, you don't have to walk far, they don't force you to do self checkout. The whole experience is way better.

[Micfri]

Reasonable prices on most products & I love how a lot of it is fresh/organic. Lucky to have one close by.

[joe.oneill]

Trader Joe's is a well run company. They have a Glassdoor rating of 4 (out of 5) with close to 8K reviews; 77% positive.

[adelaferreira]

I am a fan of Traders Joes for the last 25 years, their products are good quality and 30% cheaper then the competition, I won’t go anywhere else for good cheese, bread, butter, olive oil, little tomatoes etc, they really pay attention to their customers and that is a recipe for success, I think .

[Terika-]

I love Trader Joe's. I actually look forward every time to go grocery shopping ! Also prices are great . As a vegan, I purchase a lot of fresh food ...I would go bankrupt if I had to shop every time in other stores here in California.