- Two themes drove Trader Joe:
- GI bill of rights which increased college participation
- Boeing 747 which reduced cost of travel (i.e. you had more educated persons)
- Evolution of Trader Joe's over time
- 1960s - Good Time Charlie
- 1970s - Whole Earth Harry
- 1980s - Mac The Knife
- Key moments in retailing
- Napolean era conflicts forced the creation of tin cans, which resulted in creation of brands
- Brands exploded in popularity due print ads and radio series. Celebrity endorsements.
- Supermarkets emerged in 1930s just as people bought cars. And, the shopping cart was invented. Supermarket retailing was entirely brand oriented.
- Coaxial cable TV replaces radio. Everyone watches the same things.
- Entry into wine retailing
- Bought a legacy master winery license to retain the original grandfathered benefits and permit wholesale of wine to clubs & bars.
- Found a loophole where each distributor labelled the same wine brand with their own sub brand. So they just found the cheapest distributor.
- Cater to highly educated but underpaid demographic.
- Core insight: Wine connoisseur and health food enthusiast were on the same buying spectrum.
- Decided to act like a real retailer i.e. buy something whole and sell it in lots eg how they did for cheese and nuts.
- How to approach merchandising?
- Edibles only, non-branded and preference for private label.