GRAB A CART The Psychologies and Strategies Behind Your Favorite Grocery Stores Written & Designed by Jillian O’Farrell Graphic by Tamar Ponte
Grocery
shopping: the essential task that most young adults dread. As college students, balancing independent living with demanding academic and social lives, we sometimes avoid basic routines like gathering food. When we do work up the energy to act like responsible adults, one grocery store reigns supreme: Trader Joe’s. Individuals aged 18 to 40 spend more on groceries than any other age group, but they also tend to eat locally and are more health-conscious. They’re open to a wider range of cuisines and products, but they still want to pay a low price for good value. Trader Joe’s earned its fanbase by catering to these wants— maximizing quality and minimizing cost. Trader Joe’s is known for inexpensive, quality food products, particularly freezer favorites like its Mandarin Chicken, Butternut
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Squash Mac & Cheese, and Cauliflower Gnocchi. Trader Joe’s mainly sells under its own brand name; private labels account for about 80 percent of their products. These specialty foods are usually organic or health-focused (non-GMO, dairy, and gluten-free options). Adopting private labels keeps prices low by cutting out intermediaries in the supply chain. It also increases demand because its products can only be purchased at Trader Joe’s stores. Aside from the Trader Joe’s name and logo, there is little aesthetic consistency between the different stores. Interior designs vary based on the store’s respective location. The spaces are meant to be welcoming, fun shopping environments that represent the local area. Incorporating local motifs in-store designs makes shoppers feel like they’re in a local grocer;
this ultimately fosters a stronger affinity toward the store and its products. Trader Joe’s functions with the motto “less is better”; the company is extremely selective when choosing what items deserve the brand name. Without ties to big brands, Trader Joe’s curates its product portfolio around the current needs of its customers. Stores have a very small inventory capacity, so only the fastest moving products can stay on shelves. As buyers’ interests change, so do Trader Joe’s products. The most effective aspect of Trader Joe’s business plan, however, is eliminating the need to choose. Imagine you’re at the grocery store deciding if you should buy pasta sauce.
