Ever wonder why Trader Joe’s is so cheap? Here’s your answer

There are a lot of reasons why people love Trader Joe’s. From their low prices to the wide assortment of food, the grocery store keeps customers coming back again and again.

And the data proves that Trader Joe’s has a formula for success. In fact, Trader Joe’s generates around $1,300 in sales per square foot. To put that in perspective, that’s double the supermarket industry average. Double!

Officially, Trader Joe’s success is based on this simple strategy of delivering unique products at reasonable prices. But that raises the question: How does Trader Joe’s afford to keep their competitive prices so affordable?

Well, the main reasons is because the grocery retailer has a large selection of private-label products. Because these items are private-label, Trader Joe’s is able to buy them directly from the supplier, which helps cut down on the cost.

Trader Joe’s tends to carry a smaller number of products— averaging around 2,000—whereas a typical supermarket would carry around 30,000. However, the selection is anything but basic. Nearly 80 percent of the products sold at Trader Joe’s are items consumers can’t pick up anywhere else. From their popular chili-lime chicken burgers and their cookie butter (which is a cookie-flavored nut butter) to the yummy spinach and kale Greek yogurt dip and the addictive rosemary Marcona almonds—it’s a culinary adventure every time you shop!

Another reason Trader Joe’s is able to keep prices low is because the chain uses no-frill designs. Perhaps you’ve notice that there are quite a few similarities between discount grocer Aldi and Trader Joe’s, and that’s because the two grocery chains were founded by the same people.

Also, have you ever realized that you don’t see a lot of ads or hear much about Trader Joe’s in mainstream media? That’s because the retailer spends less on advertising, and instead relies on classic word-of-mouth marketing. Clearly, this marketing tactic is working for them. Now excuse us while we sit back and indulge in a delicious Trader Joe’s pound plus chocolate bar (and we’ll be sure to tell everyone where we got it!).