The San Diego Union Tribune reports on how Trader Joe's has parlayed what seems to be a national obsession with the inexpensive wine called "Two Buck Chuck" into a broadening mainstream appeal - this despite the fact that its stores average 10,000 sq. ft. and its SKU count is generally about 2,500, far less than the average supermarket that brags about deep selection and one-stop shopping.
The key? Well, according to analysts, it is because the company differentiates itself with unusual, mostly private label items that cannot be found elsewhere. And, it consistently brings in 20-25 new products a week, and gets rid of those that do not catch on - meaning that customers are driving what is on shelves, not slotting allowance and promotional fees.
The key? Well, according to analysts, it is because the company differentiates itself with unusual, mostly private label items that cannot be found elsewhere. And, it consistently brings in 20-25 new products a week, and gets rid of those that do not catch on - meaning that customers are driving what is on shelves, not slotting allowance and promotional fees.
- KC's View:
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We've always felt that the thing that really distinguishes Trader Joe's from most other retailers is that it presumes a level of intelligence in its consumers, and treats them that way. Not only do people want a bargain, but they want quality products, plenty of nutritional/content information about those products, and a comfortable environment in which to buy them.
Companies like Trader Joe's put the lie to what so many retailers claim - that the consumer wants one-stop shopping. Nope. What the consumer wants is something entirely different, and companies like Trader Joe's prove it.
By the way, have you noticed that there are people in this country who know what "Two-Buck Chuck" is, even though they've never set foot in a Trader Joe's? That's called having an impact…
