Trader Joe's: A Unique Business Model

The quirky little grocery chain with California roots and German ownership has a lot to teach all of us about choice architecture, efficiency, frugality, collaboration, and team spirit.

• SOURCES:
  • Kirk DesErmia, facilities manager in Seward, Alaska.
  • Mark Gardiner, journalist and author.
  • Sheena Iyengar, professor of business at Columbia Business School.
  • Michael Roberto, professor of management at Bryant University.

• RESOURCES:
  • “Trader Joe’s,” David Ager and Michael Roberto (Harvard Business School Case, 2014).
  • “What Brands Are Actually Behind Trader Joe’s Snacks?,” Vince Dixon (Eater, 2017).
  • Build a Brand Like Trader Joe’s by Mark Gardiner (2012).
  • “When Choice is Demotivating: Can One Desire Too Much of a Good Thing?,” Sheena Iyengar and Mark Lepper (Journal of Personality and Social Psychology, 2000).
  • Unlocking Creativity, by Michael Roberto (2019).

• EXTRAS:
  • “How Can This Possibly Be True?,” by Freakonomics Radio (2016).
  • “How to Save $1 Billion Without Even Trying,” by Freakonomics Radio (2016).