Trader Joes Stores

The thrill of the hunt

Trader Joe's, the specialty grocery chain that seems to be eyeing Lexington, might not have the cheapest toilet paper or the most varieties of ketchup, but it hooks customers with mango butter, chocolate-covered pomegranate seeds and cilantro-and-jalapeño hummus.

These goodies aren't on most grocery lists, but they tempt shoppers into an impulse buy. At a time when families are being frugal and the Web makes discount-hunting easy, unexpected treasures are an increasingly important strategy for stores.

"It's the wow factor that's getting people to buy," Wall Street Strategies analyst Brian Sozzi says.

So shoppers might go into T.J. Maxx or a DSW shoe store looking for a bargain on something they need but end up splurging on irresistible finds.

Dollar Tree lures customers with rock-bottom prices on cleaning supplies, then tempts them with extras such as leather iPod cases.

Constantly cycling in fresh merchandise is critical as the Web makes it harder for stores to compete on price. Surprises also create suspense and encourage repeat visits.

TJX Cos., parent company of T.J. Maxx and other chains that sell designer goods at a discount, gained momentum during the recession, when frugality came into style. That growth is continuing after the recession. First-quarter revenue at Marshalls and T.J. Maxx stores open at least a year was up 4 percent from the same period last year.

The key is not only tracking down quality merchandise from vendors but getting it into the store quickly. To do this, T.J. Maxx and others have invested in sophisticated buying, planning and distribution systems.

The quick turnover creates a sense of urgency: If you don't buy it today, it probably won't be there tomorrow. When the economy tanked, TJX began cycling inventory through the store faster than ever, says Sherry Lang, vice president of investor relations.

By embracing the treasure hunt, dollar stores have been able to keep the middle-income shoppers they attracted during the recession. Dollar Tree CEO Bob Strasser told analysts the store has taken the opposite approach from Wal-Mart, expanding its assortment of "fun" discretionary products and adding more brand names. That means more surprises to tempt shoppers.

It's working. Dollar Tree's revenue at stores open at least a year was up 7.1 percent in the most recent quarter.

Trader Joe's is built almost entirely on the treasure hunt. The privately held company declined to comment on business operations but said 80 percent of its products are private-label foods you can't find anywhere else, such as Thai green curry simmer sauce and chili-spiced dried mango.

Trader Joe's sets course for July 29: German-owned chain readies ...

The hiring sign is up, and the aisles are being stocked.

The much-anticipated opening of Trader Joe's in Mount Pleasant is set for 8 a.m. July 29 with a ceremonial lei-cutting, keeping in tradition with its Hawaiian-inspired elements, company spokeswoman Alison Mochizuki said Thursday.

The California-based, German-owned chain took over the former Hungryneck Antique Mall at 401 Johnnie Dodds Blvd., and has been renovating the 14,700-square-foot building since acquiring it last winter.

The second Trader Joe's in South Carolina -- the other is near Greenville -- is opening just around the corner from Whole Foods, a high-end grocer that Trader Joe's likes to shadow.

Trader Joe's carries foods and beverages from the exotic to the basic, including an inexpensive line of Charles Shaw wines from California called "Two Buck Chuck." About 80 percent of its products from around the globe carry the Trader Joe's label.

The opening celebration will include food demonstrations and stickers for children throughout the day.

Open from 8 a.m. to 9 p.m., the store will feature festive decor, mixing the company's traditional cedar-covered walls with local inspiration.

The store's walls will include hand-painted murals of the Morris Island Lighthouse, Rainbow Row, the Arthur

Ravenel Jr. Bridge, boats sailing near Patriots Point and other views of metro Charleston.

The company's practice is not to offer sales, fancy promotions or discount cards. Its strategy is to change prices only when costs change, Mochizuki said. It also purchases from manufacturers and not distributors, helping to keep costs down.

Trader Joe's will take a name-brand product, remove preservatives and artificial colors and ingredients and sell it under its own label at a discount, Mochizuki said.

To keep a sense of adventure in the store, the company adds about a dozen new items every week. That also means an equal number of items are removed.

Owned by German retail giant Aldi Group, the store allows employees to wear brightly colored, Hawaiian-style shirts to add a light-hearted flair to the shopping experience. They also ring bells instead of using an intercom system for workers to communicate.

The new store manager, or captain as the company prefers, is Chris Spina, who comes from Trader Joe's in Atlanta with 12 years of experience. The assistant manager, or first mate, is Brian Travers from the store in New York City's Union Square, where he worked for two years.

Cooking with All Things Trader Joe's

The Trader Joe's adventure, turning a unique approach to business into a retail and cultural phenomenon

The I Love Trader Joe's Cookbook, More Than 150 Delicious Recipes Using Only Foods from the World's Greatest Grocery Store

Management

Trading Up, Why Consumers Want New Luxury Goods--and How Companies Create Them