Smells Like Green Spirit

Business Practices of Trader Joe’s

13 07 2007

My friend Alla just moved here from Decatur, Georgia, where she used to consistently shop at a huge, independent farmer’s market. Trying to find something similar here in Chicago, and sharing my dislike of Whole Foods’ high prices and sweeping takeover of independent stores, she asked me if knew anything about the business practices of Trader Joe’s.

Here are a few things I’ve discovered:

Trader Joe’s does not take part in slotting fees like Whole Foods does.
- Slotting fees are essentially little bribes that companies pay to have their products placed in key points in grocery stores, such as eye level, to ensure maximum selling power.
- Slotting fees mean that items that might be better quality or price are often relegated to the lesser noticed areas and shelves, such as the very high or very low ones.
Trader Joe’s endeavors to advertise more through word of mouth than through paper advertising, which creates less waste, and is far less annoying
Trader Joe’s bases its product selection on customer demand and product quality, which is pretty cool, although (and I hate to say this!) sometimes the breadth of selection can seem a little lacking.
On that note, the selection of fresh produce could be better. But hey, this gives more incentive to shop for produce at a Community Supported Agriculture farm.
Some people get irritated by all the packaging on the fruits and veggies. (Though I sheepishly admit I don’t remember noticing this.)
TJ’s is less expensive than Whole Foods. (but, honestly..what isn’t?)
I hear TJ’s is anti-union, much like Whole Foods.