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When high schoolers across the country go off campus for lunch, their first stops are typically fast food chains such as McDonalds, Taco Bell, and alike. However, at CCA there is an unexpected competitor for kids' lunch money: Trader Joe’s. You read that right: Trader Joe’s, the grocery store. Kids run over to the store in hoards during lunch and after school, grabbing the Dark Chocolate Peanut Butter Cups, Chili and Lime Flavored Rolled Corn Tortilla chips, Spring Rolls with Tofu, and more. But what causes this craze? What makes Trader Joe’s so special?
Trader Joe’s secret weapon is its specialty private label products. Trader Joe’s is a privately held company, meaning that they don’t need to disclose financial statements. This allows them to discreetly and easily work with suppliers. By having these unknown close connections, Trader Joe’s can get discounted products that they can then sell under market value since the supplier doesn’t need to give the same discount to other companies. Not only does Trader Joe’s get to sell products for cheaper using unknown supplier deals, but they also prioritize getting unique products. These distinct products distinguish Trader Joe’s and it provides a reason for shoppers to go to the store over other supermarkets. Their distinctive products beg the question: why would shoppers go to another supermarket for some supplies when Trader Joe’s offers both exclusive and commonplace products? It becomes more practical for shoppers to get everything at Trader Joe’s, increasing the stores' overall sales.
When walking into a Trader Joe’s, you never know what you will find. This is by design. Trader Joe's swaps 10-15 items per week. This makes each trip a surprise and creates scarcity. For example, if you love a product but know it is going away soon because it is seasonal, you are more likely to stock up and spend more money. This also adds what some people have called “a treasure hunt-type feel” to the store. The treasure hunt adds a fun reward for shopping and finding new and unique products each time. This is critical as most people see shopping at grocery stores as a chore, but by changing the atmosphere, people begin to enjoy and want to go to the grocery store more, increasing sales.
The employees are just as important to the stores' success as the products.
Trader Joe’s purposely hires very friendly people and has them stock shelves during open hours. This increases the interactions between employees and their customers. The employees also tend to be treated very well. Trader Joe’s makes their job great by giving good pay, making them rotate jobs to reduce boredom, and having the company contribute to all employees' retirement funds, part-time employees included. These incentives create happy long-term employees; over 10% of employees at Trader Joe’s have worked there for 10 or more years. Keeping employees happy and interacting with customers builds a relationship between the employees and the customers, giving customers a reason to return to the store.
How Trader Joe’s advertises also sets it apart. Trader Joe’s doesn’t have a lot of marketing in the traditional sense. They have very little social media use, and their only direct advertising comes from in-store flyers or radio ads. However, they have other ways to advertise their store and products. One tactic they use is giving their specialty products memorable names. For example, they name their Swedish-fish-like gummies “Scandinavian Swimmers.” This is a marketing tactic because when people talk about “Scandinavian Swimmers” and someone asks where they can get it, the only answer is Trader Joe’s. If they were just called “Swedish Fish,” people would say that the person could just go to any store and buy the product. By creating unique product names, Trader Joe’s creates exclusivity and increases word of mouth (its biggest marketing tactic for getting new people in its doors). Also, while they do not have a big social media presence themselves, that does not mean there isn’t one created on their behalf. The products speak for themselves, which is seen across social media platforms. There are dozens of social media accounts created just to document the new and exciting products coming to the store. These accounts also don’t just reach a few people, some of them have hundreds and thousands of followers, providing free and authentic advertising for Trader Joe’s.
Next time you are at Trader Joe's, look around and see if you can spot the rotating items, low prices, happy employees, and unique products. That combined with the practically free online marketing makes Trader Joe’s the beloved behemoth it is today.
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