Why Do You Spend So Much Money at Trader Joe’s?
We all know that Trader Joe’s is a grocery store that has been sweeping the nation. Established by Joe Coulumbe in 1967 in Pasadena, California, Trader Joe’s has grown to include over 500 stores nationwide. But why is Trader Joe’s so successful? What do they do differently to attract customers, compel them to buy so many products, and keep them coming back?
Trader Joe’s Is Not Your Average Grocery Store
The way that Trader Joe’s markets itself and has built its brand is unlike any other grocery store in America. If you break it down, it is remarkable that Trader Joe’s is as successful as it is. The company has virtually no branded goods and nothing is ever on sale. There are no coupons, no loyalty program, no self-checkout, and the stores are tiny, with cramped aisles and limited selection. There are no TV ads, and all other advertisements are limited. But nonetheless, Trader Joe’s was the highest-ranking national brand in terms of overall customer satisfaction in Consumer Reports 2019 ranking of grocery chains, bringing in over $13.2 billion in revenue in 2021.
What Makes Trader Joe’s So Compelling?
As soon as you walk into a Trader Joe’s you feel as if you just stepped into a local market. The store has a south-seas theme, complete with employees wearing tropical shirts and being called captains and crew members. They use this theme to play upon the idea of merchants going on adventures to bring back exciting and diverse foods. In order to give the store a very personalized feeling, their signs and advertisements are hand-drawn and handwritten. They don’t work with national and global brands because they know consumers associate many brands with being overly processed and artificial. Instead, they choose to carry their own brand of goods, which helps people feel that they are making healthier and more environmentally friendly choices. Additionally, they brand their products in such a way to make people feel that they can’t get something of comparable value anywhere else. Trader Joe’s uses an abundance of overly descriptive adjectives to make the products feel even more unique and special. For example, they don’t just have potato chips, they have Rose Fingerling Potato Chips with French Grey Guerande Sea Salt. All of these things contribute to the unique experience that Trader Joe’s provides its customers and keeps them coming back.
Why Trader Joe’s is the King of Impulse Buys
In order to maintain the feeling of a small town, local market Trader Joe’s keeps their stores small compared to their competitors. The average Trader Joe’s is about 10-15,000 square feet, while the average grocery store is about 40,000 square feet. Due to this limited space, Trader Joe’s carries a limited amount of products and is always switching up what they carry depending on the time of year. This means that if you see something you like at Trader Joe’s today, you feel the compulsion to buy it because you know it might not be there the next time you come in. Because Trader Joe’s is not a one-stop grocery store, and they know you will most likely need to visit one of their competitors in order to fulfill all your grocery needs, they rely on their unique and ever-changing selection to compel you to buy things you may or may not really need.
All in all, Trader Joe’s is a very unique grocery store. From its small-town feel to its limited selection of products and unique finds, Trader Joe’s is king when it comes to finding unique ways to satisfy its customers.