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Trader Joe's

In: Business and Management

Submitted By natis4ever
Words 413
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Trader Joe’s is a growing chain of grocery stores with a difference. Whilst not a monstrous chain store, Trader Joe’s emphasises small stores which sell a selection of goods hard to find elsewhere at lower prices. The fact that quality goods come at such low prices is just one reason why the Trader Joe’s company has become so successful. From humble beginnings, the company has now grown into a multi-billion dollar giant.
This may seem strange when the small and far less numerous stores of Trader Joe’s are compared to the number and size of stores associated with other grocery store giants. Even so, Trader Joe’s can now boast of two hundred and forty branches across nineteen states. Not bad for a company which started out as a number of convenience stores in Los Angeles in 1958. When competition from 7-Eleven stores threatened, the owner of the stores, which were then called Pronto Markets, decided to expand his business by starting to sell gourmet food at reduced prices. As such, the idea of high quality goods at low prices was started along with the new name, Trader Joe’s, in 1967, named after the owner, Joe Coulombe.
A big part of the stores’ success immediately came from the fact that the majority of the produce sold is sold under the company’s private label. As such, Mr Coulombe immediately created a trusted product, which, as it was also cheap, drew in the customers, creating a loyal clientele. As the number of items on sale is accordingly low compared to huge supermarkets who sell numerous brands of the same products, shoppers are able to find what they want immediately, without worrying about whether they have bought the best brand. They know the Trader Joe’s is a label which can be trusted whilst also protecting their wallets. Fewer brands also meant easy supply and sourcing, cutting down costs, and the majority of profits go straight to the...

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