The allure of Trader Joe’s aka what’s the big freakin’ deal?June 16th, 2011 by sitedude
When Hawaiian shirt-clad Trader Joe’s employees open the new Silverdale store’s doors for the first time at 8 a.m., you can bet a bottle of “Three Buck Chuck” that a line of people will be waiting.
Kitsap residents eagerly awaited its opening, filling Facebook groups with love notes, chiding newspapers for not writing more about it and gratifying Kitsap Sun reporters and bloggers who did with thousands of page views.
Elsewhere, the chain has inspired fan blogs, cookbooks and discussion groups about “TJs”.
When faced with such rampant adult enthusiasm, it awakens a journalistic tendency to question nearly everything, a tendency that, if left unchecked, can turn to mockery.
So I asked, what’s the big deal?
I hit Google and a Trader Joe’s store to attempt an honest answer.
As one Facebook fan posted on the Bring Trader Joe’s to Silverdale WA page, “I think TJs is a love it or don’t get it place.”
On entering the Trader Joe’s in University Place, you’re greeted by hand-drawn signs advertising specials and new deals under thatch umbrellas consistent with its South Pacific theme.
It’s more like Cost Plus World Market than Safeway.
Employees, called “crew members” are generally friendly. On the job applications, part-time crew members are instructed to “become smitten with your customers. … Make sure customers know they are welcome and cared for.”
All the stores are like that, intended to feel laid-back, neighborhood-like, much like the company’s first store, which opened in Pasedena, Calif. in 1967. This despite having been bought out by the Albrecht family of grocers in Germany, the opening of 365 stores nationwide with profits estimated at $8.5 billion, according to industry analysts Supermarket News.
But walking down the aisles, I can see that the products themselves are what set it apart from other grocery stores.
The first aisle on the left filled with organic nuts and dried fruits, including (catch my breath) green mangoes. Where else do you see that at a store outside of Hawaii?
Oh, dark chocolate almonds tossed with salt? In the basket.
A $3 six-pack of lager … can it really be worse than PBR? In the basket.
Sunflower butter and f rozen, deep fried Mac and cheese? Hold on a minute, I’ve got a budget.
It’s the kind of thing the company touts on its website as “the thrill of discovery.”
The company has cultivated a product line that includes plenty of organics, exotic ingredients and pre-made sauces and frozen products.
As one Pepperdine University marketing analyst sums it up the difference is that, “(Trader Joe’s) culture, because it involves the customers in an ongoing sense of discovery and adventure, is both unique and difficult to copy. And because it is aligned to their specific target market rather than broad differentiation built around quality and service, it is more difficult to replicate by those companies that are serving a more expansive competitive space.”
And somewhere between products and culture is the sense that shopping at Trader Joe’s is more responsible. Branded products claim to be free of artificial colors and preservatives, MSG or added trans fats. The company highlights a fair trade culture and has been responsive to customers’ requests for non-GMO foods, and a move to phase out by the end of next year seafood that doesn’t come from sustainable sources.
But, as a private company likely trying to maintain control of its relationships, it’s tight-lipped about where its products come from, making it difficult for an outside organization to track just how sustainable its buying practices are, according to Sustainable Industries magazine.
Those who lean toward knowing the exactly where the food came from would be better off sticking to local farmers markets.
But often unlike organic, fair trade products elsewhere, Trader Joe’s offers them cheaply.
The company generally purchases items directly from manufacturers, buying in bulk and doing its own repackaging mostly — by one estimate, 80 percent —under the Trader Joe’s label.
Items that in style (if not always in exact makeup) are familiar and cheaper than the original products at regular grocery stores.
Take, for example, an 8 oz. bottle of Annie’s Naturals Goddess dressing, which runs $4 to $5 at local grocery stores. The Trader Joe’s version cost $1.99, lists nearly all of the same ingredients in the same order with slight variations in wording, such as “sea salt” vs. “salt” and “parsley, chives” vs. “spices” on the Annie’s and Trader Joe’s versions respectively.
And sometimes, that includes the brand name, too. A block of Dubliner cheese which has been cut and repackaged in plastic wrap sells for $6.49 per pound. A brand-packaged block of the same cheese retails for $12.55 per pound at Safeway.
That’s not to say everything is cheaper at Trader Joe’s. A look at six-packs of Northwest microbrews or, for example a tube of Tom’s of Maine mint toothpaste or box of Puffins cereal, are no better or slightly more than at my local grocery store.
And it’s not a place a person is likely to find an entire grocery list’s worth of goods.
According to a Fortune magazine article, “With the greater turnover on a smaller number of items, Trader Joe’s can buy large quantities and secure deep discounts” and simplify stocking.
The products regularly change, as the company puts it, “If an item doesn’t pull its weight in our stores, it goes away to gangway for something else.” But that doesn’t work against them, says Fortune, because “customers accept that Trader Joe’s has only two kinds of pudding or one kind of polenta because they trust that those few items will be very good.”
The big deal, in short, is that the stores have a consistent store brand and an ever-changing product line targeted to a middle- to upper middle-income shoppers who are socially, health- and cost-conscious.
And because of that, shoppers will be waiting Friday, ready to do their darndest to clear the shelves and stock up on cheap wine and the hundreds of other goodies that they’ll have just realized they can’t live without.