Stephen Dubner
👤 SpeakerAppearances Over Time
Podcast Appearances
So that explains why there's so many employees in the aisles. But there are also a ton of employees staffing the checkout. On one level, this makes sense. It makes the long checkout line move fast. And checkout, after all, is where a store takes the customer's money. Lesson number one in sales, don't make it hard for people to give you their money.
So that explains why there's so many employees in the aisles. But there are also a ton of employees staffing the checkout. On one level, this makes sense. It makes the long checkout line move fast. And checkout, after all, is where a store takes the customer's money. Lesson number one in sales, don't make it hard for people to give you their money.
So that explains why there's so many employees in the aisles. But there are also a ton of employees staffing the checkout. On one level, this makes sense. It makes the long checkout line move fast. And checkout, after all, is where a store takes the customer's money. Lesson number one in sales, don't make it hard for people to give you their money.
But Trader Joe's also has employees directing traffic at the checkout line. one telling you which register to go to, one pulling you out of the big queue and into the final queue, and one or two holding up handmade signs marking the middle of the queue and the beginning. That's three or four employees to do the job that most stores use zero employees to do, or maybe they use some software.
But Trader Joe's also has employees directing traffic at the checkout line. one telling you which register to go to, one pulling you out of the big queue and into the final queue, and one or two holding up handmade signs marking the middle of the queue and the beginning. That's three or four employees to do the job that most stores use zero employees to do, or maybe they use some software.
But Trader Joe's also has employees directing traffic at the checkout line. one telling you which register to go to, one pulling you out of the big queue and into the final queue, and one or two holding up handmade signs marking the middle of the queue and the beginning. That's three or four employees to do the job that most stores use zero employees to do, or maybe they use some software.
But Trader Joe's seems to be aggressively low-tech. No self-checkout aisles, no online ordering and pickup, no customer loyalty programs, and apparently Trader Joe's gathers no significant data on customers at all. In the modern business world, this is heresy. If you shop at Whole Foods, which is owned by Amazon, you can be sure the company has an algorithmic target on your back.
But Trader Joe's seems to be aggressively low-tech. No self-checkout aisles, no online ordering and pickup, no customer loyalty programs, and apparently Trader Joe's gathers no significant data on customers at all. In the modern business world, this is heresy. If you shop at Whole Foods, which is owned by Amazon, you can be sure the company has an algorithmic target on your back.
But Trader Joe's seems to be aggressively low-tech. No self-checkout aisles, no online ordering and pickup, no customer loyalty programs, and apparently Trader Joe's gathers no significant data on customers at all. In the modern business world, this is heresy. If you shop at Whole Foods, which is owned by Amazon, you can be sure the company has an algorithmic target on your back.
Trader Joe's, meanwhile?
Trader Joe's, meanwhile?
Trader Joe's, meanwhile?
So this is a riddle. Here's a company that doesn't harness big data, doesn't generally seem to embrace a lot of technology. It employs a lot of real live people and offers decent pay and benefits. But this is also a company that sells its products at low prices.
So this is a riddle. Here's a company that doesn't harness big data, doesn't generally seem to embrace a lot of technology. It employs a lot of real live people and offers decent pay and benefits. But this is also a company that sells its products at low prices.
So this is a riddle. Here's a company that doesn't harness big data, doesn't generally seem to embrace a lot of technology. It employs a lot of real live people and offers decent pay and benefits. But this is also a company that sells its products at low prices.
One head-to-head comparison of grocery prices in Washington state found that Trader Joe's was 19% cheaper than the local average, 12% cheaper than Target and 24% cheaper than Whole Foods. So how on earth can Trader Joe's, as Michael Roberto told us, take in the most revenue per square foot in the industry? They're at the top by a wide, wide margin.
One head-to-head comparison of grocery prices in Washington state found that Trader Joe's was 19% cheaper than the local average, 12% cheaper than Target and 24% cheaper than Whole Foods. So how on earth can Trader Joe's, as Michael Roberto told us, take in the most revenue per square foot in the industry? They're at the top by a wide, wide margin.
One head-to-head comparison of grocery prices in Washington state found that Trader Joe's was 19% cheaper than the local average, 12% cheaper than Target and 24% cheaper than Whole Foods. So how on earth can Trader Joe's, as Michael Roberto told us, take in the most revenue per square foot in the industry? They're at the top by a wide, wide margin.
A 2024 analysis found that Trader Joe's sells around $1,750 of groceries per square foot. Kroger, $800. Walmart, $600. How is this happening? We should probably start with the products that Trader Joe's sells. Here, let me read some of what they say are their most popular items.
A 2024 analysis found that Trader Joe's sells around $1,750 of groceries per square foot. Kroger, $800. Walmart, $600. How is this happening? We should probably start with the products that Trader Joe's sells. Here, let me read some of what they say are their most popular items.