Trader Joe 's Is A Consumer Retail Grocery Store Essay

1326 Words6 Pages
2. Trader Joe’s is a consumer retail grocery store that started in 1967 in Pasadena, California. Joe Columbe founded Trader Joe’s and has been succeeded by John Shields in 1987. Under John command in 1983 they expanded into Arizona and then 2 years later to the Pacific Northwest. Then in 1996 they opened their first store on the east coast just outside of Boston. Shields retired in 2001 and was succeeded by Dan Bane. As of April 2015, Trader Joe’s had 457 locations in 25 states (Llopis, 2011)and is adding new locations regularly. They are reluctant to growth too fast but rather develop a good reputation with the general vicinity of its locations. Trader Joe’s in not a super mega store or chain. Each of its location have an average of about 10,000 S.F. This limits the variety of product that they carry but does not limit their variety. This means that they don’t carry your staple products from Kellogg’s, Kroger, General Mills, etc. like Walmart or Safeway but allows them to carry their own versions of such foods and hard to find products that their competitors don’t carry. Most grocery chains carry around 50,000 sku’s in each of their stores, Trader Joe’s carry only around 4,000 sku’s, 80% of which carry its own private label (Kowitt, 2010). Fortune magazine also estimated sales to be $1,750 in merchandise per square foot. This more than doubles sales of its nearest competitor, Whole Foods. If a product doesn’t carry its own weight, it is gone to make room for

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