Stephen Dubner

The real estate firm Zillow found that homes near Trader Joe's stores appreciate more quickly than homes in the city as a whole, concluding that either Trader Joe's is really good at picking areas that are on the rise or that they are in part causing the rise. So how about a new store in Seward, Alaska? That is Kirk DeSermia's dream.

The real estate firm Zillow found that homes near Trader Joe's stores appreciate more quickly than homes in the city as a whole, concluding that either Trader Joe's is really good at picking areas that are on the rise or that they are in part causing the rise. So how about a new store in Seward, Alaska? That is Kirk DeSermia's dream.

The real estate firm Zillow found that homes near Trader Joe's stores appreciate more quickly than homes in the city as a whole, concluding that either Trader Joe's is really good at picking areas that are on the rise or that they are in part causing the rise. So how about a new store in Seward, Alaska? That is Kirk DeSermia's dream.

Unless you think DeSermia is one of those guys who makes a Facebook page for everything.

Unless you think DeSermia is one of those guys who makes a Facebook page for everything.

Unless you think DeSermia is one of those guys who makes a Facebook page for everything.

Seward, Alaska does have a relatively high median household income, but the population is a problem. Fewer than 3,000 people. DeSermia concedes that Anchorage, a few hours away, would be a more sensible site for the first Trader Joe's in Alaska, and he'd happily make the drive. He just really wants a Trader Joe's.

Seward, Alaska does have a relatively high median household income, but the population is a problem. Fewer than 3,000 people. DeSermia concedes that Anchorage, a few hours away, would be a more sensible site for the first Trader Joe's in Alaska, and he'd happily make the drive. He just really wants a Trader Joe's.

Seward, Alaska does have a relatively high median household income, but the population is a problem. Fewer than 3,000 people. DeSermia concedes that Anchorage, a few hours away, would be a more sensible site for the first Trader Joe's in Alaska, and he'd happily make the drive. He just really wants a Trader Joe's.

Coming up after the break, we'll get into the economic details of Trader Joe's success. We'll hear how they flipped the script on customer relations. Just imagine if you would.

Coming up after the break, we'll get into the economic details of Trader Joe's success. We'll hear how they flipped the script on customer relations. Just imagine if you would.

Coming up after the break, we'll get into the economic details of Trader Joe's success. We'll hear how they flipped the script on customer relations. Just imagine if you would.

And we'll answer the question we know you've been thinking. What does Trader Joe's have in common with Michelangelo? It's coming up right after this. Of all the mysteries concerning the success of Trader Joe's, here's what strikes me as the most interesting one. Their stores, as we've learned, are generally quite small, roughly a third the size of a typical supermarket. Michael Roberto again.

And we'll answer the question we know you've been thinking. What does Trader Joe's have in common with Michelangelo? It's coming up right after this. Of all the mysteries concerning the success of Trader Joe's, here's what strikes me as the most interesting one. Their stores, as we've learned, are generally quite small, roughly a third the size of a typical supermarket. Michael Roberto again.

And we'll answer the question we know you've been thinking. What does Trader Joe's have in common with Michelangelo? It's coming up right after this. Of all the mysteries concerning the success of Trader Joe's, here's what strikes me as the most interesting one. Their stores, as we've learned, are generally quite small, roughly a third the size of a typical supermarket. Michael Roberto again.

Moreover, as we've learned, Trader Joe's prices are relatively low, and yet they also take in much higher revenues in stores that have more variety and more expensive items. So how? Remember, Trader Joe's doesn't sell a lot of brand name groceries. Roughly 80% of their products are private label items, also known as store brands.

Moreover, as we've learned, Trader Joe's prices are relatively low, and yet they also take in much higher revenues in stores that have more variety and more expensive items. So how? Remember, Trader Joe's doesn't sell a lot of brand name groceries. Roughly 80% of their products are private label items, also known as store brands.

Moreover, as we've learned, Trader Joe's prices are relatively low, and yet they also take in much higher revenues in stores that have more variety and more expensive items. So how? Remember, Trader Joe's doesn't sell a lot of brand name groceries. Roughly 80% of their products are private label items, also known as store brands.

And when you're selling something that you also manufacture, or at least source directly, you obviously stand to make more money than if you're buying from a middleman. That said, even store-branded products need to taste good. Judging from the chain's success, they do. In fact, some Trader Joe's branded items may taste identical to brand-name foods. Why? Because, it appears, they are identical.

And when you're selling something that you also manufacture, or at least source directly, you obviously stand to make more money than if you're buying from a middleman. That said, even store-branded products need to taste good. Judging from the chain's success, they do. In fact, some Trader Joe's branded items may taste identical to brand-name foods. Why? Because, it appears, they are identical.