Have you heard the one about the Trader Joe’s parking lot? It goes something like this:
Trader Joe’s Real Estate Agent: How’s the parking lot?
Landlord: Claustrophobic. Chaotic. Awful, actually.
Trader Joe’s Real Estate Agent: Where do I sign?
Jokes about Trader Joe’s typically terrible parking abound. In fact, it’s even been a topic of discussion on “Inside Trader Joe’s” the company’s podcast.
💰💵Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter💰💵
But there’s a reason for the for the notoriously difficult parking. Trader Joe’s locations tend to be a lot smaller than typical grocery stores — a store’s square footage partly determines the size of its adjoining parking lot — because the company prefers to have smaller stores which require lower overhead.
In other words, convenient parking is not a priority. Trader Joe’s management seems to know that bad parking is one of the brand’s idiosyncrasies loyal customers are willing to put up with, in exchange for lower prices on everything from cheese and chips to eggs and milk.
Image source: Ethan Miller/Getty Images)
Trader Joe’s is focused on keeping prices low(er)
If you happen to be a Trader Joe’s shopper, odds are you know it’s possible to find decent deals on staples and speciality items, at least when you compare TJ’s prices to some mainstream grocery outlets.
Related: The one-dollar rule: How a personal finance expert justifies any purchase
One of the reasons Trader Joe’s is able to keep prices relatively low is the number of private label products they stock.
Basically the company buys brand names of hundreds of products and then put the Trader Joe’s name on the label. One savvy Redditor, CookieButterLovers shared an exhaustive list of Trader Joe’s products s/he swears are private label, including:
- Butter Almond Thins – Jules Destrooper Butter Almond Thins
- Butter Toffee Pretzels (holiday seasonal) – Everton Toffee Butter Toffee Pretzels
- Cheddar CheeseSticks – John Wm. Macy’s
- Chicken Cilantro Mini Wontons – Bibigo
- Goddess Dressing – Annie’s
- Henry Hotspur’s Hard Pressed For Rosé Cider – Angry Orchard
- Instant Ramen Soup – Right Foods Dr. McDougall’s or Mike’s Mighty Good Ramen
- Pita Chips – Stacy’s
- Smooth and Creamy Classic Hummus – Tribe
Alas, one cannot live on ramen, Rosé Cider and pita chips alone, but Trader Joe’s staples also tend to be less expensive than many mainstream grocery stores.
More Food News:
- McDonald’s, Starbucks targeted by rival fast-food chain’s takeover
- Popular retailer unveils affordable line with unexpected brand
- Oreo celebrates 113th birthday bringing back fan favorite
For example, Trader Joe’s website currently lists a dozen “pasture-raised” brown eggs for $4.99. That’s quite a bit more than eggs cost six months ago, but if you consider that at Safeway, a dozen large “cage free” eggs costs $9.99, also per the company’s website, you can see why so many people are increasingly doing more of their everyday shopping at Trader Joe’s.
Related: Trader Joe’s, Aldi make surprising moves in grocery space
While you’ll find decent prices at Trader Joe’s, you won’t find a self-checkout lane, a smart cart with a screen on the front, or a shelf-stocking robot.
Another reason Trader’s Joes is able to keep prices lower is the company’s commitment to being low-tech.
Trader Joe’s stands out amongst competitors for one simple reason
On a recent episode of the “Inside Trader Joe’s” podcast co-host and Trader Joe’s Vice President of Culture and Innovation Matt Sloan shared why the store all but eschews so-called retail technology.
“So it turns out we are all about marketing, the lowercase-M marketing being an actual market,” said Sloan.
“We think grocery shopping should be a fun social experience,” added co-host Trader Joe’s Vice President of Marketing Tara Miller. “So instead of cold, impersonal, flat monitors, we have live crew members who are smart and fun to talk with. They’ll not only help you find what you’re looking for and discover new products, they’re happy to share their thoughts on those products.”
The company has no plans to introduce e-commerce, either, partly because setting up an e-comm business would require a considerable investment and ultimately that would drive up prices and could alienate many of Trader’s Joe’s most loyal budget-minded customers.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
