Case Analysis Business Competitive Strategies
Katlyn Cann Sarah Musgrave Jill Chant Alana Gillis …show more content…
Many Trader Joe’s stores can be found in old strip malls in suburban locations. The typical Trader Joe’s store has less than 15,000 square feet of selling space. The store works with a much lower square footage than larger supermarket chains that range from about 40,000-50,000 square feet. Experts estimate that Trader Joe’s generate approximately $10 billion in annual revenue. The store carries about 4,000 SKU’s per location compared to about 50,000 SKU’s for most other grocery stores. 80% or more of their products consist of private label items and you can’t find any major brands at the store. They do not offer a wide range of meat but instead they offer a wide range of frozen goods such as fruit. Trader Joe’s do not offer all of the necessities that you may need while shopping therefore a typical family wouldn’t be able to do all of their shopping there. The company scoured high for interesting and dynamic products. They introduce 10-15 products per week and eliminate 10-15. Trader Joe’s is not a technology savvy store and they do not have things such as self-checkouts. Instead Trader Joe’s believes on being able to converse with their customers. Trader Joe’s employees are paid more than if they worked at another grocery store. New part-time hires typically earn $12 per hour. Full time employees earned approximately $50,000 per year. Store …show more content…
The company intends to expand its retail network through the opening of stores in the US. Increasing the number of stores provides the company with close proximity with its customers, increasing the footfalls. The company consistently reaches out to new customers through store expansion and introduction of new concepts into both existing and new markets.
Opening Smaller Retail Location
Trader Joe’s has a loyal following of customers and a strong brand image. With these strong factors they could a Trader Joe’s Pantry. The store would be much smaller than a regular Trader Joe’s store and would offer a fraction of the products that a regular retail location would offer. They could open these stores up in busy retail locations where they may not be able to find the store space for a larger store. By opening a smaller location they would be able to both appeal to new customers with their best selling products as well as have the opportunity to open up in new markets.