Trader Joe’s is a private label success story, which has been tremendously successful since its debut. It has owed largely to its ability to define itself from its competitors with a wide variety of unique products, many of which are only found at their outlets. The supermarket has locations around the United States. And a little-known fact is that most products on their shelves have been produced by private label or white label manufacturers.
Several factors have contributed to Trader Joe’s success throughout the years, including an incredibly loyal customer base as a significant basis for the grocery chain’s achievement.
What Makes Trader Joe’s Different?
Trader Joe’s has distinguished itself from other grocery stores by offering unique, curious and new products and tastes that includes influences and ingredients from around the world. They also feature a limited amount of products to keep the shopping experience streamlined and the quality and value high.
The stores are full of amazing products, but they’re not made by Trader Joe’s itself. Instead they use private label manufacturers around the world. They also have unique and minimally designed packaging that balances value. This very factor appeals to consumers and encourages sales. Customer service is based on genuine connections, and the store is interactive through sampling, fun and helpful staff and a no-questions-asked return policy.
Their Private Label Success Story
According to a study done by the New York-based research consultancy Magid, more than half of US consumers, approximately 56%, would consider purchasing private label grocery products from Trader Joe’s. Most people reading this article have probably shopped at a Trader Joes, and if you have, you have likely returned again and again, showing that even private label goods can build one of the strongest brands.
Here are some of the many reasons behind the surprising results of the survey.
1 – Perks of Private Label
The path of Trader Joe’s private label success story debuted its first private label product, granola, in 1972. Trader Joe’s founder, Joe Coulombe, called it a “game changer” for the store. Consequently, today approximately 80% of Trader Joe’s products are private label. And since it eliminates the middleman and goes straight to suppliers, it enables the retailer to charge lower costs than national brands.
Many of Trader Joe’s private-label products are popular with consumers, such as its Dark Chocolate Peanut Butter Cups and Triple Ginger Snaps. It also means that customers will have to go to Trader Joe’s to get them, increasing foot traffic and sales for the retailer.
2 – Trust
Shoppers are more likely to purchase private label grocery goods from Trader Joe’s. It is because of the specialty retailer’s established reputation in the sector. Consumers are loyal to certain private label grocery brands. Those with more recognition are considered more frequently than other brands.
Moreover, shoppers feel more at ease shopping private-label groceries from stores that specialize in that category. Hence, they are more inclined to explore additional private label categories from a retailer they trust.
3 – Variety
Trader Joe’s private label success comes from the idea that it offers distinctive, trendy products that are ahead of national brands. They also offer a wide range of personalized options to their shoppers.
Trader Joe’s alters and tailors its inventory based on the location of each store, the seasons, and other criteria. Such personalization draws local customers in building trust who come for a personal experience.
These strategies through Private Label explains how Trader Joe’s is the leading grocery store supermarket in the business. Contact Beyond Botanicals America’s leading private label cbd manufacturer to create your own private label success story.