Richard Seesel

PL Buyer: Joe's Trading Its Way to the Top

August 23, 2010

FROM RETAILWIRE:
While it's doubtful most retailers would want to copy Trader Joe's outright, they can learn some important lessons on how to make their private label lines as appealing to consumers. What lessons does Trader Joe's success offer those looking to develop their own private label programs?      [more...]

I see three things that differentiate TJ's from the competition:

1. Distinctive product development instead of "me-too" merchandise;
2. A consistent focus on value;
3. A disciplined approach to assortment planning.

The relatively small size of most Trader Joe's stores forces the chain to make sure that every product carries its weight. And the customer is consistently--and pleasantly--surprised by the price/quality equation. These are clear lessons not only for food retailers but for every retailer trying to build a more rational and competitive private-brand model.