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Inside the secret world of Trader Joe's

135 pointsby jakartaover 14 years ago

16 comments

dangover 1 year ago
<a href="https:&#x2F;&#x2F;web.archive.org&#x2F;web&#x2F;20100825182626&#x2F;http:&#x2F;&#x2F;money.cnn.com&#x2F;2010&#x2F;08&#x2F;20&#x2F;news&#x2F;companies&#x2F;inside_trader_joes_full_version.fortune&#x2F;index.htm#joe" rel="nofollow">https:&#x2F;&#x2F;web.archive.org&#x2F;web&#x2F;20100825182626&#x2F;http:&#x2F;&#x2F;money.cnn....</a><p><a href="https:&#x2F;&#x2F;fortune.com&#x2F;2010&#x2F;08&#x2F;23&#x2F;inside-the-secret-world-of-trader-joes&#x2F;" rel="nofollow">https:&#x2F;&#x2F;fortune.com&#x2F;2010&#x2F;08&#x2F;23&#x2F;inside-the-secret-world-of-tr...</a>
ben1040over 14 years ago
The Trader Joes return policy is pretty amazing. For the first 5 years I shoped there I never even thought to bring something back, but then once a few years back I felt the need to give it a test -- and honestly I couldn't believe they'd even accept a label off a microwave dish and my word that it tasted awful.<p>The manager was cheerful about it, and told me I wasn't the first person to bring back that particular item. Then he reeled me in:<p>"I'll gladly get you a refund; did you have any other shopping to do today? I can have the checker credit your order."<p>"Oh... I suppose I do."<p>I returned an item that cost less than $2, and then ended up buying a week's worth of groceries at $50.<p>Zappos may be the only other company I can think of that has the kind of return policy that increases revenue in the long run.
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anigbrowlover 14 years ago
FYI, the rather reclusive owner of the company, Theo Albrecht, died quite recently. It may surprise you to know he was one of the world's richest men.<p>TJs has the lowest number of different products in it stores of any major supermarket, plays employees significantly above the industry average ($40-60k; managers can earn 6 figures), gets a far greater $/sq foot return than competitors, and does over $8 billion a year in sales. And pretty much everyone likes them.<p>Herr Albrecht is a pretty good role model if you ask me.<p><a href="http://www.guardian.co.uk/business/2010/aug/05/theo-albrecht-obituary" rel="nofollow">http://www.guardian.co.uk/business/2010/aug/05/theo-albrecht...</a> <a href="http://online.wsj.com/article/SB10001424052748704895004575395251115540766.html?mod=europe_home" rel="nofollow">http://online.wsj.com/article/SB1000142405274870489500457539...</a>
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iamelgringoover 14 years ago
Trader Joe's is a boostrapper's dream: cheap, tasty and quick meals.<p>Their prepared foods and marinated meats are really pretty good. Their cheese and wine selections are quite good. I found a Petite Syrah I absolutely _love_ there for $3.99. We buy it by the case. Bread is consistently some of the better bread I've found outside of dedicated bakeries here in the US (our bread generally sucks). A glass of wine ($3.99 a bottle), a loaf of bread ($1.99 a baguette lasting a day or two), a bit of low fat goat's milk brie ($2.99 a round lasting several days), a bit of sliced salami ($2.99 a for 2 salami's lasting 4 meals), some dried almonds ($3.00 for a pack of 20 mini bags), and I have very tasty no-cook meals for a day or two.<p>If you're in Silicon Valley (or anywhere that has a Joe's), and trying to eat well on a budget visit Trader Joe's.
pwimover 14 years ago
Perhaps the most relevant point:<p><i>A closer look at its selection of items underscores the brilliance of Coulombe's limited-selection, high-turnover model. Take peanut butter. Trader Joe's sells 10 varieties. That might sound like a lot, but most supermarkets sell about 40 SKUs. For simplicity's sake, say both a typical supermarket and a Trader Joe's sell 40 jars a week. Trader Joe's would sell an average of four of each type, while the supermarket might sell only one. With the greater turnover on a smaller number of items, Trader Joe's can buy large quantities and secure deep discounts. And it makes the whole business -- from stocking shelves to checking out customers -- much simpler.</i>
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ryanricardover 14 years ago
Wow, I've been a regular Trader Joe's shopper ever since one opened up down the street about a year ago. Frankly, I was always a bit worried that between the price and the quality there was a "too good to be true" angle that I was missing. But from this article, it seems like they rely on:<p>* Buying good food<p>* Distributing it efficiently<p>* Paying their employees well.<p>I don't really care how "quirky cool" they are or are not, that's pretty sweet.
jswinghammerover 14 years ago
I love Trader Joe's. They have an excellent supply of fancier foods and a pretty good selection of pantry items at good prices. I feel as though I get the same level of quality from them without paying for it like I do at Whole Foods.<p>I love the New Zealand Cheddar they sell there. I have no idea why but it's my favorite cheese. My two year old daughter can't get enough of it either so maybe it's genetic.
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speekover 14 years ago
Trader Joe's and GE are two of my favorite companies mostly because of their amazing depth of vertical integration. They've got this stuff down to an art form.
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314159265over 14 years ago
The vicinity of Trader Joe's is actually a significant consideration whenever I relocate.
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Cowboy_Xover 14 years ago
This fan-made commercial says it all:<a href="http://www.youtube.com/watch?v=OdB7GDZY3Pk&#38;feature=youtube_gdata_player" rel="nofollow">http://www.youtube.com/watch?v=OdB7GDZY3Pk&#38;feature=youtu...</a><p>And now it's stuck in your head! <i>ding</i>
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zwiebackover 14 years ago
It's a real tragedy when TJs discontinues one of your favorite items. Still mourning the loss of those flat New Zealand buiscuits filled with apricots and raisins. Also the pomegranate syrup is gone...
daveambroseover 14 years ago
My GF and I have done a lot of shopping at the Chelsea store from the article. Funny the author pointed out "random Manhattan strangers" as I noticed this yesterday when we did our week shopping.<p>I think the Chelsea store opened a few weeks back, as someone from our office stumbled upon it and brought back peanut butter filled pretzels nuggets - which were awesome. Needless to say, once I heard they opened a TJ in the area, I had to stop by and experience it.<p>The Chelsea store is so much more open with high ceilings compared to the Union Square location. If you live in NYC, I recommend shopping in this location.
YiddishPoliceover 14 years ago
Trader Joe's, come to Colorado, you can make the long haul work, I promise.
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joe_the_userover 14 years ago
Trader Joe's is pretty clever.<p>I go there and there are about fives things I want and which are good deal. Then there are ten things I'd buy if I was in a hurry and are only a good deal if want I to pay premium for processed stuff. I get a good deal there but I suspect most customers throw down a lot of money for convenience that isn't cheap or healthy - but I suppose that's what they want.
sicularsover 14 years ago
A Trader Joe's is opening in the on 72nd and Columbus in Manhattan that. It's already causing the local groceries to change their game and they haven't even opened yet.
analyst74over 14 years ago
Among a generally critical-minded crowd like HNers, Trader Joe has not gotten a single bad comment.<p>I am impressed.