Essay On Whole Foods Markets And Trader Joe's

The U.S. grocery chains Whole Foods Market’s and Trader Joe's have become household names nationwide. While they are located in various locations, each of its stores operates under a different approach. There is a distinct difference in the quality of their products. In comparison, Whole Foods is more expensive than Trader Joe's because it has more specialty products. Whole Foods also tend to carry more organic products than Trader Joe's. Personally, I think that the overall quality of Whole Foods groceries products is much better than Trader Joe's.
Whole Foods Market's aims to build a grocery store which supplies whole, natural foods. It aims to move away from artificial and processed foods. This can be evidenced by the quality of the produce at Whole Foods Market. Their store’s offerings usually range from season’s produce, seafood, meats, bakery products, hot food bar, deli, beer, wine, cheese, floral, and pets and household. They even sell baby clothes and Tom's shoes for adults. (Some customers would even be surprised to find items like shoes in a grocery store.) At present, it has more than two hundred stores across the United States, Canada and Great Britain (SOURCE).
Whole Foods is differentiated from Trader Joe’s because it locally source out its products. Whole Foods has a buying relationship with local farmers. The local farmers supply the nationwide store with the seasonal produce. In the case where one farmer cannot produce a certain amount of fruits or vegetables, another farmer can make it up.
The Whole Foods stores operate under minimal management. They are given the freedom to source the products they will offer, which may be appropriate for their store location. They meet the needs of their local customers. The only rule that the Whole Foods corporate office follow is to ensure that their stores do not purchase products with the following: artificial flavorings, preservatives, colorings, sweeteners, or hydrogenated oils. A big retailer such as Whole Foods would not be able to do such a thing when they are short in supply.
The sea foods at Whole Foods Market are very fresh. They actually have an on-site buyer in Alaska (SOURCE). Their buyer travels to various ports and fisheries. He establishes close relationships with the fishermen at the beginning of the season. Whole Foods source their salmon at these ports within 48 hours. Their most fresh seafood is flown to the local stores to meet the demands of the local consumers.
As mentioned, the overall focus at Whole Foods is on quality. For this reason, the consumer pays the price. It is a little bit more expensive than other grocery stores. However, Whole Foods does not compete with grocers and does not intend to ever do so. They have an enormous leverage since many of its products cannot be found in any other local groceries. Because they only carry pure, unadulterated foods/products, this enhances value to their customers.
Whole Foods considers its employees as the foundation of their company's competitive advantage against its direct competitors like Trader Joe’s. Its employees are knowledgeable, enthusiastic and very passionate. In 2010, Fortune Magazine ranked Whole Foods as No. 18 on the list of “100 Best Companies to Work For” (SOURCE). Whole Foods is one of only 13 companies to have appeared on the list since its establishment. Whole Foods also provides each of its worker and their domestic partners with medical care benefits. They also make it mandatory to get paid a reasonable wage.
Whole Foods Market is a company that has been in business for 30 years. They have great team members working for them. Their stores are kept clean, well-stocked and very organized. I personally believe all of their products will cater to every customer. It is for this reason that they are a successful company. I believe that they will continue to be successful for the future years.
In the meantime, Whole Foods’ competitor, Trader Joe's, has also been around in the market for a little over forty years. They have more than 300 stores in 25 states nationwide (SOURCE). Trader Joe's is careful about over expansion. They seem to market their grocery stores like a neighborhood store. In 2010, Trader Joe’s only opened about five stores.
Trader Joe's does not solely emphasize on their success. They also manage another grocery chain, Alde. The company is also highly secretive about their operations, logistics and suppliers. Trader Joe's is just simple, fun, and cost controlled grocery chains. One can purchase high-quality gourmet food for a reasonable price at their stores. For this reason, customers also patronize their stores and continue to come back for more. Trader Joe's is based on a “yuppie-loved” phenomenon. It offers a fun shopping experience.
Another competitive edge for Trader Joe's is that they implement a low-cost and efficient distribution network. They offer products to customers at all income levels. An average consumer is able to purchase a gourmet meal at a reasonable price.
Similar to Whole Foods, Trader Joe's also has a unique relationship with its suppliers. There are enormous levels of trust and secrecy. It intends to protect its product sources from other vendors and customers. Trader Joe's has been successful with its private label brands as well. It chooses to use this strategy because to differentiate itself against its competitors and reduce its marketing costs. This strategy also reduces the number of SKU's in the stores which keeps its consumers happy and loyal.
Another reason why Trader Joe's has been successful is because it carefully selects its employees. It believes that a happy workforce will create happy customers. Hence, Trader Joe's has a very selective screening process in which they seek talented and motivated individuals who share a passion for food and high level of customer service. It has fewer employees working compared to an average grocery store. However, Trader Joe's invests more in the relationship with their employees. Trader Joe's is also considered as one of the more popular grocers to work. As of 2010, Trader Joe's has paid above-union wages. It extends benefits such as health insurance, generous employee discounts and performance evaluations every six months with potential for pay increases.