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Trader Joe's is the exclusive retailer of [[Charles Shaw wine]], popularly known as ''Two Buck Chuck''<ref name=German/> because of its $1.99 price tag in California; in some locales, it sells for more than $3 a bottle due to varying state liquor taxes and transportation costs. Of the wine selection at Trader Joe's, Coloumbe has said, "We built Trader Joe's on wine first, then food. I tasted 100,000 wines, and most weren't wonderful. They were submitted to us by desperate vintners." Along with Charles Shaw, Trader Joe's is known for stocking a very large selection of California and New-World wines.<ref>{{cite web |url=http://www.novusvinum.com/features/trader_joes.html |title=The Origins of Trader Joe's and Why Americans Don't Drink More Wine|accessdate=2008-11-05 |last=Franson |first=Paul |work=Novus Vinum}}</ref>
Trader Joe's is the exclusive retailer of [[Charles Shaw wine]], popularly known as ''Two Buck Chuck''<ref name=German/> because of its $1.99 price tag in California; in some locales, it sells for more than $3 a bottle due to varying state liquor taxes and transportation costs. Of the wine selection at Trader Joe's, Coloumbe has said, "We built Trader Joe's on wine first, then food. I tasted 100,000 wines, and most weren't wonderful. They were submitted to us by desperate vintners." Along with Charles Shaw, Trader Joe's is known for stocking a very large selection of California and New-World wines.<ref>{{cite web |url=http://www.novusvinum.com/features/trader_joes.html |title=The Origins of Trader Joe's and Why Americans Don't Drink More Wine|accessdate=2008-11-05 |last=Franson |first=Paul |work=Novus Vinum}}</ref>


Though there are no Trader Joe's stores in Europe, products branded with its name have begun to appear in Aldi stores there. Products that have been made available include [[maple syrup]], [[iced tea]], [[salmon]], dried [[plum]]s, [[raisin]]s, [[dried fruit]], [[Nut (fruit)|nuts]], and [[crispbread]].<ref>{{cite web|url=http://de.wikipedia.org/wiki/Trader_Joe%27s |title=Trader Joe's |language={{de icon}} |work= [[German Wikipedia]]{{better source|reason=citation is of an unsourced contribution}} |date= |accessdate=2009-11-28| quote= Um den Markennamen in Europa bekannt zu machen, vermehrt [[Aldi]] kontinuierlich die Produkte mit diesem Namen. Dazu gehören u.&nbsp;a. inzwischen Eistee, Lachs, Trockenpflaumen, Rosinen, Trockenobst, Nüsse, Sonnenblumenkerne oder Knäckebrot.{{cn}}}}</ref>
Though there are no Trader Joe's stores in Europe, products branded with its name have begun to appear in Aldi stores there. Products that have been made available include [[maple syrup]], [[iced tea]], [[salmon]], dried [[plum]]s, [[raisin]]s, [[dried fruit]], [[Nut (fruit)|nuts]], and [[crispbread]].<ref>{{cite web|url=http://de.wikipedia.org/wiki/Trader_Joe%27s |title=Trader Joe's |language={{de icon}} |work= [[German Wikipedia]] |date= |accessdate=2009-11-28| quote= Um den Markennamen in Europa bekannt zu machen, vermehrt [[Aldi]] kontinuierlich die Produkte mit diesem Namen. Dazu gehören u.&nbsp;a. inzwischen Eistee, Lachs, Trockenpflaumen, Rosinen, Trockenobst, Nüsse, Sonnenblumenkerne oder Knäckebrot.{{cn}}}}</ref>{{better source|reason=citation is of an unsourced contribution to the German Wikipedia}}


Trader Joe's promises that anything with a "Trader Joe's" logo contains no artificial colors, flavors, or preservatives, contains no MSG or trans fats, and is sourced from non-genetically modified ingredients.<ref>{{cite web|url=http://www.traderjoes.com/labels_and_lists.html |title= Trader Joe's Labels and Lists |publisher=Trader Joe's |date= |accessdate=2009-11-28}}</ref>
Trader Joe's promises that anything with a "Trader Joe's" logo contains no artificial colors, flavors, or preservatives, contains no MSG or trans fats, and is sourced from non-genetically modified ingredients.<ref>{{cite web|url=http://www.traderjoes.com/labels_and_lists.html |title= Trader Joe's Labels and Lists |publisher=Trader Joe's |date= |accessdate=2009-11-28}}</ref>

Revision as of 17:22, 23 August 2010

Trader Joe's
Company typePrivate
IndustryRetail (Grocery)
FoundedLos Angeles, California 1958 (1958)
Headquarters
Monrovia, California
,
U.S.
Number of locations
344 in seven states (as of August 2010)[1]
Key people
Joe Coulombe, Founder
Dan Bane, Chairman & CEO
Theo Albrecht, Owner
ProductsDiscount staple food, organic food, and Specialty products[1]
RevenueUS$8 billion (FY 2010)
(Estimate)[2]
Number of employees
5,500[3]
Websitewww.traderjoes.com

Trader Joe's is a privately held chain of specialty grocery stores headquartered in Monrovia, California. As of July 2010, Trader Joe's had a total of 343 stores.[4] Approximately half of its stores are in California, with the heaviest concentration in Southern California, but the company also has locations in 24 other states and Washington, D.C. Trader Joe's was founded by Joe Coulombe and is currently owned by a family trust set up by the late German businessman Theo Albrecht, one of the two brothers behind the German supermarket chain Aldi.[5]

History

An example of a Trader Joe's storefront.

Trader Joe's is named after its founder, Joe Coulombe. The chain began in 1958 as a Greater Los Angeles area chain of "Pronto Market" convenience stores. The original Pronto Markets were similar to 7-Eleven stores, so similar Coulombe felt the competition with 7-Eleven would be ruinous.[6] He is said to have developed the idea of the Trader Joe South Seas motif while on vacation in the Caribbean.[7] He had noticed that Americans were traveling more and returning home with tastes for food and wine they had trouble satisfying in supermarkets of the time.[8] The first store named "Trader Joe's" opened its doors in 1967. This store, on Arroyo Parkway in Pasadena, California, remains in operation. In response to competition from 7-Eleven, the chain differentiated its stores' offerings and doubled the floor space in 1967. In the first few decades of operation, some of the stores offered fresh meats provided by butchers who leased space in the stores. Trader Joe's at one time had sandwich shops, freshly cut cheese, and fresh squeezed orange juice. Theo Albrecht bought the company in 1979.[9] Coulombe was succeeded by John Shields in 1987; under his leadership the company expanded beyond California, moving into Arizona in 1993 and the Pacific Northwest two years later.[1] In 1996, the company opened its first stores on the East Coast, in Brookline and Cambridge, both outside Boston.[1] Shields retired in 2001, turning the reins over to Dan Bane. Shields still does consulting for the company.

A Business Week article about the store noted that, between 1990 and 2001, the chain quintupled the store number and increased its profits by ten times.[5] Supermarket News estimates that Trader Joe's total sales for 2009 were $8 billion, which gave it a ranking of No. 21 on the list of "SN's Top 75 Retailers for 2010."[2] As of 2010, Trader Joe's sells what Fortune magazine estimated to be $1,750 in merchandise per square foot, more than double the sales generated by Whole Foods.[1]

The May 2009 issue of Consumer Reports ranked Trader Joe's the second-best supermarket chain in the nation, after Wegmans.[10] In June 2009 MSN Money released its third annual Customer Service Hall of Fame survey results. Trader Joe's ranks second in customer service.[11] Ethisphere Magazine named Trader Joe's one of the most ethical companies in the United States in 2008, 2009, and 2010.[12][13][14]

Products

Unlike typical grocery stores, which may carry 50,000 items (or SKUs), Trader Joe's stocks about 4,000 items, 80% of which bears one of its own brand names.[1]

Trader Joe's describes itself as "your neighborhood grocery store" or "your unique grocery store". Products sold include gourmet foods, organic foods, vegetarian food, unusual frozen foods, imported foods, domestic and imported wine and beer (where local law permits), "alternative" food items, and staples like bread, cereal, eggs, dairy, coffee and produce. Non-food items include personal hygiene products, household cleaners, vitamins, pet food, plants, and flowers.

Interior of the Union Square, Manhattan store.

Many of the company's products are environmentally friendly.[9] In October 2007, Trader Joe's began to phase out foods imported from China amid concerns that standards on "organic" products from the country aren't as stringent as they should be. Between February 2008 and April 2008, Trader Joe's phased out single-ingredient products from China due to concerns over tainted goods.[15]

Trader Joe's maintains low prices by having smaller and plainer stores, using plainer packaging, and carrying a smaller variety of products and getting more turnaround on products they do carry, which enables the purchase of larger quantities of perishable items closer to the expiration date at better prices, knowing that they can be sold within shelf-life parameters.[16] Individual products are also discontinued more often than at larger grocery chains, due to increased costs, poor sales, or to free up space for new items.[17]

Trader Joe's sells many items from any of several of its own private labels, requiring their sometimes brand-name suppliers to not publicize their business relationship with them, and offering products supplied by the suppliers as a significant discount to their brand-name price.[1] Their labels are sometimes named in accordance to the ethnicity of the food in question, such as Trader Jose's (Mexican food), Trader Ming's (Chinese food), Baker Josef's (bagels), Trader Giotto's (Italian food), Trader Joe-San (Japanese food), Arabian Joe's (Middle Eastern food), Pilgrim Joe's (seafood), JosephBrau (beer), Trader Johann's (lip balm), Trader Jacques' (imported French soaps), Joe's Diner (certain frozen entrees), Joe's Kids (children food), and Trader Darwin's (vitamins). By selling almost all of its products under its own label, Trader Joe's "skips the middle man" and buys directly from both local and international small-time vendors.[18]

Trader Joe's is the exclusive retailer of Charles Shaw wine, popularly known as Two Buck Chuck[9] because of its $1.99 price tag in California; in some locales, it sells for more than $3 a bottle due to varying state liquor taxes and transportation costs. Of the wine selection at Trader Joe's, Coloumbe has said, "We built Trader Joe's on wine first, then food. I tasted 100,000 wines, and most weren't wonderful. They were submitted to us by desperate vintners." Along with Charles Shaw, Trader Joe's is known for stocking a very large selection of California and New-World wines.[19]

Though there are no Trader Joe's stores in Europe, products branded with its name have begun to appear in Aldi stores there. Products that have been made available include maple syrup, iced tea, salmon, dried plums, raisins, dried fruit, nuts, and crispbread.[20][better source needed]

Trader Joe's promises that anything with a "Trader Joe's" logo contains no artificial colors, flavors, or preservatives, contains no MSG or trans fats, and is sourced from non-genetically modified ingredients.[21]

Employees

Trader Joe's pays above-union wages: as of 2010, full-time crew members starting at $40-60,000 per year and store managers earning in the "low six figures."[1] It contributes an additional 15.4% of each worker's gross pay into a company-funded retirement plan.[1] As of 2004, pay for entry-level part-timers was $8 to $10 an hour.[5]

Trader Joe's also offers health insurance benefits (dental, vision, and medical) to part-time employees and their dependents. Part-time employees must work 900 hours per year (an average of 20 hours per week) and be employed for a minimum of three months consecutively to qualify. All part-time employees are evaluated every six months with the possibility of a pay increase. They also receive a 10 percent discount on items bought at the store.[22]

Instead of public address systems, Trader Joe's uses a bell system to communicate. One bell notifies the crew to open another register. Two bells means that assistance is needed at the checkout stand. Three bells means that a manager is needed for assistance at the checkout stand.[23]

Locations

As of July 2010, Trader Joe's has a total of 343 stores in 25 states and Washington, D.C., with more stores being added regularly.[4] One thing that makes Trader Joe's unique is the size of its stores—most locations average between 8,000 and 12,000 square feet. Businessweek reported that the company has the highest sales per square foot of any grocer in the U.S.[24]

Environmental issues

At some locations, there is a weekly or monthly drawing for a gift certificate or bag of groceries for customers who bring in their own bags. Reusable bags are offered at many Trader Joe's locations to promote recycling.

In November 2001 Trader Joe's pledged to drop all genetically modified food from its product line. In 2009, Trader Joe's pledged to use the Monterey Bay Aquarium Seafood Watch program to inform its purchasing decisions regarding sustainable seafood and to offer only sustainable seafood in stores by December 31, 2012.[25]

References

  1. ^ a b c d e f g h i Kowitt, Beth (August 23, 2010). "Inside the secret world of Trader Joe's". Fortune. CNN.com. Retrieved August 23, 2010.
  2. ^ a b "SN's Top 75 Retailers for 2010". Supermarket News. April 2010. Retrieved May 6, 2009.
  3. ^ Trader Joe's company profile
  4. ^ a b "Trader Joes' Locations" (PDF). Trader Joe's. Retrieved 2010-08-4. {{cite web}}: Check date values in: |accessdate= (help)
  5. ^ a b c Armstrong, Larry (April 26, 2004). "Trader Joe's: The Trendy American Cousin". BusinessWeek. Retrieved November 27, 2009. {{cite journal}}: Italic or bold markup not allowed in: |magazine= (help)
  6. ^ For Trader Joe's, a New York Taste Test, The New York Times, March 8, 2006.
  7. ^ "Trader Joe's targets 'educated' buyer". Seattle Post-Intelligencer. Associated Press. August 30, 2003.
  8. ^ "Branding In History: Trader Joe’s –Not 7-Eleven" Marketing Doctor Blog. June 9, 2008.
  9. ^ a b c The American Way of Aldi, Deutsche Welle, January 16, 2004.
  10. ^ Kroll, Kathie (April 6, 2009). "Consumer Reports ranks top supermarkets". Cleveland.com. Retrieved February 13, 2010.
  11. ^ 10 Companies that treat you right, MSN Money, June 10, 2009.
  12. ^ "2008 World's Most Ethical Companies". Ethisphere Magazine. 2008. Retrieved February 13, 2010.
  13. ^ "2009 World's Most Ethical Companies". Ethisphere Magazine. 2009. Retrieved February 13, 2010. {{cite web}}: Unknown parameter |month= ignored (help)
  14. ^ "2010 World's Most Ethical Companies". Ethisphere Magazine. 2010. Retrieved April 26, 2010. {{cite web}}: Unknown parameter |month= ignored (help)
  15. ^ Hirsch, Jerry (February 12, 2008). "Trader Joe's halting some Chinese imports". Los Angeles Times.
  16. ^ Young, Bernice (February 29, 2008). "Who makes Trader Joe's food?". Chow. Retrieved November 28, 2009.[unreliable source?]
  17. ^ "Why does TJ's frequently discontinue products?". Trader Joe's. Retrieved January 15, 2010.
  18. ^ Thayer, Warren (June 1, 2002). "Trader Joe's is not your 'average Joe!' With perhaps 85% of sales coming from private label, this secretive bi-coastal chain has a playful -- and highly effective -- formula". Private Label Buyer.
  19. ^ Franson, Paul. "The Origins of Trader Joe's and Why Americans Don't Drink More Wine". Novus Vinum. Retrieved November 5, 2008.
  20. ^ "Trader Joe's". German Wikipedia (in Template:De icon). Retrieved November 28, 2009. Um den Markennamen in Europa bekannt zu machen, vermehrt Aldi kontinuierlich die Produkte mit diesem Namen. Dazu gehören u. a. inzwischen Eistee, Lachs, Trockenpflaumen, Rosinen, Trockenobst, Nüsse, Sonnenblumenkerne oder Knäckebrot.[citation needed]{{cite web}}: CS1 maint: unrecognized language (link)
  21. ^ "Trader Joe's Labels and Lists". Trader Joe's. Retrieved November 28, 2009.
  22. ^ "Trader Joe's Benefits". Trader Joe's. Retrieved November 28, 2009.
  23. ^ "Trader Joe's FAQs". Trader Joe's. Retrieved November 28, 2009.
  24. ^ Palmeri, Christopher (February 21, 2008). "Trader Joe's Recipe for Success". BusinessWeek. Retrieved 2010-8-4. {{cite journal}}: Check date values in: |accessdate= (help); Italic or bold markup not allowed in: |magazine= (help)
  25. ^ "Trader Joe's Action Issues". Trader Joe's. November 12, 2009. Retrieved November 28, 2009.
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