Trader Joe's Case Study

Trader Joe’s started out as a small chain of convenient stores, and in 1967, “Trader” Joe Coulombe changed the name to Trader Joe’s and how they do business. After observing that consumers are more likely to try new things when they are on vacation, he turned his store into an “oases” with a marine theme and cheerful employees wearing Hawaiian shirts. Trader Joe’s is differentiated with their innovative, one-of-a-kind foods priced well below their competitors. Trader Joe’s has an obligation to their employees, customers, and the community.

To start off, Trader Joe’s has an obligation to their employees, and employees have certain expectations about their job concerning the job itself, pay, benefits, promotion, co-workers, and supervision.
Customers definitely receive an enjoyable shopping experience from the theme to the employees. They have even come to expect a customer-focused attitude specifically from Trader Joe’s. Trader Joe’s highlights “soft skills” as much as the actual retail experience. The employees are friendly, are customer involved, and have high product knowledge. The employees taste and learn about the products, share their experiences, and take the time to locate and recommend products. Trader Joe’s also has a philosophy of “every penny we save is a penny you save.” They focus on natural ingredient, buy directly from suppliers whenever possible, buy in volume, contract early, do not give their suppliers a fee for putting items on the shelf, and drop items that don’t pull weight to keep costs down. Their CEO does not even have a secretary to cut every possible cost so they can offer lower prices. They limit their stock while selling twice as much as other supermarkets by selling high quality products at lower prices. Trader Joe’s says, “Giving people too much choice can result in paralysis…the more options you offer, the less likely people are to choose