Learn about the best practices and merchandising expertise that made this $2.6 billion maverick one of the greatest success stories in grocery retailing.
Despite its laid-back style and iconoclastic way of doing business, Trader Joe’s is one of the savviest and most successful niche retailers in the world. With stores that are about half the size of the average neighborhood supermarket, this unassuming chain generates sales per square foot that are twice the industry average. In The Trader Joe’s Adventure: Turning a Unique Approach to Business into a Retail and Cultural Phenomenon, author Len Lewis tells the incredible story of this famously tight-lipped chain. From its Hawaiian-shirted "crew" and campy décor, to its trademark "Two-Buck Chuck" wine and affordable gourmet products not found anywhere else, Trader Joe’s provides an entertaining and rewarding shopping experience that has attracted legions of loyal customers. Beginning with the chain’s founding more than 45 years ago, to its current position in the retail spotlight, The Trader Joe’s Adventure traces the critical business decisions that have made Trader Joe’s a phenomenon.
Readers will learn how: •The chain has turned loyal customers into its best advertising. •Trader Joe’s doesn’t choose the most expensive, high-profile locations for its stores. •Offering private-label items has fueled its growth. •Cutting out intermediaries and negotiating better pricing and quality hasn’t alienated manufacturers. •Paying high wages has nurtured a dedicated and reliable workforce. •Controlling expansion drives Trader Joe’s growth strategy.
Over the past five decades, popular niche grocer Trader Joe's has grown into a $2.6-billion chain boasting 234 stores in 19 states. How it got there—from a small chain of California convenience stores bought by Joe Coulombe in 1958—has the makings of corporate legend. Lewis, former editor-in-chief of Progressive Grocer, has an authoritative voice, but he simply cannot overcome an unfortunate dearth of raw material. Apparently, executives at Trader Joe's, 80% of whose goods are sold under the chain's private label, have never seen any point in providing an inside look at the company; Lewis is forced to stretch, and too often, repeat the little information that is publicly available. The result features a lot of filler: a plethora of secondhand opinions from industry experts, generic how-to advice and a chapter on the chain's corporate owner, German grocery giant Aldi, which turns out to be just as publicity shy as Trader Joe's. On the positive side, the major components of the company's success are made crystal clear: carve out a niche that the rest of the industry has ignored, serve it in a way that is difficult for competitors to copy and squeeze every dime to maintain the low-cost position. (Sept.)
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