The Remarkable Rise of Trader Joe’s

Sarah Smalley

 

In 2014, Trader Joe’s sales per square footage were higher than any other American grocer. The store’s success is unique among other grocery stores, based on their smaller than average location size and limited selection of products. The company has also amassed a “cult-like” consumer base. [1] With this in mind, what can we learn by analyzing Trader Joe’s customer experience and brand strategies to better understand how a devoted customer base is created? Since the 1950s, Trader Joe’s founder, Joe Coulombe, dedicated his life to developing a grocery store experience unlike any other. Every aspect of the store was strategically curated by Joe and his team, from the packaging of products, to the way employees interact with customers. While most of the elements of the Trader Joe’s brand were born unconventionally, Trader Joe’s has generated an unmistakable branded experience for the store. Trader Joe’s customers feel that they are taking part in an experience they cannot find anywhere else. For the most part, this is true.

Nearly all the products in the store are private-label items, branded with the Trader Joe’s wordmark, yet several of these products are believed to be white-labeled. This means they are produced by a different company and simply branded as a Trader Joe’s exclusive. In reality, they often have the exact same ingredients as other products in different stores. This is where the experience, rather than the product, becomes important.

The Remarkable Rise of Trader Joe’s is a time-based animation that uses research and investigative approaches to reveal the strategy behind the success of this grocery store. The quirky nature of stop-motion film embodies Trader Joe’s “personality,” and offers insights into the world of grocery stores. Viewers are encouraged to consider not only why branding and the designed experience impact shopping habits, but also how consumers’ favorite products hit the shelves.

 

[1] Lorr, Benjamin. "Salad days at Trader Joes." The Secret Life of Groceries: The Dark Miracle of the American Supermarket. 2020.

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