07/29/2025
Brilliant thinking out of the box
This guy had a crummy little store. So he made some changes. And last year it made $19 billion.
His name is Joe. Here's how it happened.
1/ Early days
Rewind to 1967. Joe’s got a convenience store. But business is tough. And he's getting pummelled by 7-Eleven.
It sucks. He's gotta make some changes.
So he dreams up a concept for a new store. Geared at the college-educated crowd. Well travelled consumers who are bored with the current options.
And he comes up with a fun brand playing off the "Tiki" culture.
It's called Trader Joe's.
2/ A new kind of store
Joe opens his first shop in California, selling interesting products at low prices. And right away this place is different.
The decor is laid back. The products are exotic. It's like a treasure hunt tailor-made for foodies.
Most important, Joe offers high quality at low prices. Bananas, humus, and peanut butter. You can get the good stuff here for less.
But Joe doesn't just want to sell stuff.
He wants to make it too.
3/ Private label
A few years in, Trader Joe's introduces its private label. And that was a good move. Today, the company makes 80% of the stuff on its shelves.
Walk down the aisles and you'll find Chili & Lime Rolled Tortilla Chips, Chicken Soup Dumplings, Everything but the Bagel Seasoning, and a lot more.
All stamped with that famous brand signature.
This stuff isn't your typical house brand. People go wild for it.
And you better get it while you can. Because if it doesn't sell, it's gone.
4/ Retail savvy
For all the quirky irreverence you find at TJ's, these people aren't screwing around.
→ Stores carry only 4,000 items, compared with 50,000 at a typical grocer. If it's not a top seller, it's out.
→ Sales average $2,130 per sqft. That's almost double Costco at $1,224. And ways ahead of Whole Foods at $1,000.
→ Products are discontinued constantly, creating urgency and stockpiling among shoppers. (or is that just me?)
5/ My take
Trader Joe’s doesn’t just have customers. It has fanatics.
Google it.
You’ll find blogs and forums run by fans. I actually found an IG fan page with 1M+ followers. It's nuts.
And marketers should pay close attention.
When you see people self-organizing to evangelize a brand, it's the height of customer love.
And that's better than any marketing you can buy.
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