Trader Joe's Case Summary

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An area where the grocery industry is threatened is in the availability of substitute products. Everything from name brands, store brands, and off brands are constant threats. Stores have invested a significant amount of money during the recession to develop their versions of popular products (Storm, 2013). Grocery stores that are able to sell their private brand products at lower prices have a significant advantage over stores that do not have their own private stock. Trader Joe’s has remained a low-cost, high-creative retailer for many years. They are frequently adding and discontinuing various products to give consumers a feel for what different parts of the world may offer without the need for travel. They have been described as a center for “cheap-thrills.” They offer a wide range of white-labeled products that are…show more content…
Amazon). However, the case study really doesn't go over the impact that online shopping could potentially have on the market as a whole. JLL completed a report that expresses in some detail that the grocery store landscape is changing and that traditional grocery stores as currently seen may need to adjust to compete. The report specifically makes reference that by 2018 e-commerce grocery revenue is expected to increase by nearly 60 percent. However, they also concede that even with the increase in sales that is not likely to exceed more than 3 percent of total market share (JLL, 2014, pg. 3). The biggest take away from this report is that all grocery store formats should see an increase in market share and store count except traditional grocery and drug stores, which are seemingly losing more of their foothold in the market daily. Now Trader Joe's obviously doesn't fall into the traditional supermarket niche, but with the climate constantly changing it stands to believe that Trader Joe's does well to continue their minimalistic efficient

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