1 / 8

Inside trader joe’s Fortune magazine

Inside trader joe’s Fortune magazine. Caitlan Fetzer , Julia Hale, Ashley Warney. Health Food Store?. Private labels. 80% of Trader Joe’s SKU’s are private labels Some resemble familiar brands (Joe’s O’s) Some well known manufacturers

jera
Télécharger la présentation

Inside trader joe’s Fortune magazine

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Inside trader joe’sFortune magazine Caitlan Fetzer, Julia Hale, Ashley Warney

  2. Health Food Store?

  3. Private labels • 80% of Trader Joe’s SKU’s are private labels • Some resemble familiar brands (Joe’s O’s) • Some well known manufacturers will make a variation of their product specifically for the Joe’s label • Example: Trader Joe’s pita chips are made by Stacy’s, a division of Pepsi-Co’s Frito Lay

  4. Their Secrets to Success? • Limited Selection-High Turnover Model • Example: Joe’s sells 10 varieties of peanut butter while the average grocery store sells 40 varieties • Sells about 4,000 SKU’s vs. average 50,000 SKU’s • “With greater turnover on smaller number of items, Trader Joe’s can buy large quantities and get deep discounts” • Smaller number of items makes stocking shelves and checking out customers much simpler • Sells estimated $1,750 in merchandise per sq. ft • More than double what Whole Foods sells

  5. Their Secrets to Success? • They’re trendy • “Trader Joe’s doesn’t pick up on trends – it sets them” • High list celebs are consistently seen at its stores • Mom & Pop feel (neighborhood stores) • While being a national chain, it maintains the small town feel • Smaller selection = happier customers • “A wide selection can lead to shopping paralysis” • Specialty Items • “Exotic affordable luxuries”

  6. Too Secretive? • They keep their image by keeping things “hush hush” • Declined many requests to speak to Fortune about business operations • Few customers know they are actually owned by the Albrecht family (ultra private supermarket empire) • Famous in Germany for not talking to press • This article was obtained over a 2 month period by speaking with former executives, competitors, industry analysts, and all involved asked not to be named.

  7. Relation to Class? • Trader Joe’s supply chain (minimize length of channel) • Purchase directly from manufacturers • Product then shipped directly to Trader Joe’s distribution centers • Keeps costs low and supplier relations strong

  8. Sources • Kowitt, Beth. "Inside Trader Joe's." Fortune Magazine 6 Sept. 2010: 86-96 • www.traderjoes.com • http://money.cnn.com/2010/08/20/news/companies/inside_trader_joes_full_version.fortune/index.htm

More Related