Since American entrepreneur Joe Coulombe founded Trader Joe's in 1967, it has gained widespread appreciation, especially on social media. Now, some of these die-hard fans are explaining the psychology behind why they keep going back to the store.
In a video posted on October 9, TikToker Nicole Urban shared some of the "psychological tricks" that she thinks Trader Joe's uses to encourage people to spend more money in its stores.
She mentioned the outgoing, charismatic employees who are encouraged to strike up conversations, its quirky hand-drawn signs, its low prices, its unique seasonal products, and its fun, laid-back atmosphere that helps it to stand out from the hustle and bustle of other popular supermarket chains.
The video has gone viral, receiving 5.3 million views. It has sparked discussion, and many viewers are responding by sharing the psychology behind why they love the store, and whether it relates to her hypotheses.
One of the biggest talking points was the demeanor of the cashiers. A TikTok viewer with the username @slothslipnslide wrote: "My cashier made me cry because she said I looked like I needed flowers and then called me a good mom after giving me a free bouquet."
Many viewers responded with similar stories of Trader Joe's employees gifting them flower bouquets or potted plants. Urban replied, "I would sob…oh my god."
Another viewer, who goes by the TikTok username @world.o.winston, wrote that they once told a Trader Joe's cashier they were applying to adopt a dog, and the cashier encouraged them to do so. Whenever they go back to shop at Trader Joe's, they still show the cashier pictures of him. "She only knows us as Winston's parents," they wrote.
In September, Trader Joe's employee Akeem Caballero told Insider that the friendly demeanor of employees is genuine and that they are encouraged to interact with customers.
"Being able to enhance a customer's shopping experience makes my job fun. It also makes it easy to want to talk to customers because there are so many ways we can genuinely help them, not upsell them," he said.
In August, Trader Joe's executives said it has no plans to add self-checkout kiosks to its stores. Jon Basalone, the company's president and vice chief executive officer, said on the company's podcast, "We believe in people. We're not trying to get rid of our crew members for efficiency's sake."
Many commenters pointed to another personal touch too — Trader Joe's signature hand-painted signs. TikToker @moondrops_burst wrote that the store design was half the reason she started going.
In a reply, TikToker @christian.soria pointed out that some Trader Joe's stores have different art. "I've worked at two different stores, and both had such good but different art," they wrote.
Customers may be drawn to the art because it "emphasizes the personal relationship," Mark Gardiner, a former marketing executive who worked at and wrote a book about Trader Joe's, told the Washington Post in 2022. "It's the graphic equivalent of that cheerful conversation that you'll have with a total stranger that's working there, who sees you buying dog food and asks you what kind of dog you have," he told the outlet.
Another aspect people were analyzing was the impact that fewer choices had on their love of Trader Joe's, which is known for carrying a smaller selection of items than many other grocery stores. Clinical research doesn't confirm that fewer options will necessarily lead customers to spend more, Psychology Today reported in 2010, but anecdotal experience suggests it can.
Several people commented that not having to contend with tons of choices helps make them feel less anxious and overwhelmed while shopping, and more likely to want to go back.
While Trader Joe's does not disclose its financials, it's estimated to bring in around $16.5 billion in sales annually, Insider previously reported.
Analytics firm Numerator found that the typical Trader Joe's shopper is between 25 and 44, and the store is very popular on TikTok. The hashtag #TraderJoes has received over 4.7 billion views, with many videos receiving millions of views recommending their must-have products, picking up their favorite limited-edition items, and sharing their hauls.
FAQs
She mentioned the outgoing, charismatic employees who are encouraged to strike up conversations, its quirky hand-drawn signs, its low prices, its unique seasonal products, and its fun, laid-back atmosphere that helps it to stand out from the hustle and bustle of other popular supermarket chains.
Why does Trader Joe's have such a loyal customer base? ›
In the BRI, the metric Trader Joe's ranks highest for is “I trust.” With no sales, no special clubs and no loyalty cards needed, customers know the price they see is what they get. Buyers can also purchase with confidence, as you can try anything in the store before purchasing, and return any item for any reason.
Why do so many people love Trader Joe's? ›
Ask any fan why they prefer Trader Joe's over any other grocery store, and many will likely point out the chain's private-label items. The grocery store sells nearly exclusively products that are branded under the Trader Joe's name, which is partly a money-saving maneuver and partly a marketing strategy.
Why do you think Trader Joe's might have such a loyal customer base? ›
By making each visit enjoyable, Trader Joe's turns every transaction into an interaction. Trader Joe's certainly seems like a masterclass in generating consumer loyalty. According to McKinsey research, a few core tenets of turning buyers into fans are target, engagement, personalization, and economics.
What makes Trader Joe's so special? ›
At Trader Joe's, you won't find a lot of branded items. Instead, you'll discover a store full of unique and interesting products, along with everyday basics, in the Trader Joe's label. Our buyers travel the world searching for products we think are exceptional and will find a following among our customers.
What strategies is Trader Joe's using to build customer loyalty? ›
Trader Joe's is known for its curated and exclusive product offerings. They carefully select unique and high-quality products that are not commonly found in other grocery stores. By offering these exclusive products, Trader Joe's creates a sense of exclusivity and excitement among its customers.
What is a loyal customer base? ›
Customer loyalty describes an ongoing emotional relationship between you and your customer, manifesting itself by how willing a customer is to engage with and repeatedly purchase from you versus your competitors. Loyalty is the byproduct of a customer's positive experience with you and works to create trust.
Why is everyone so nice at Trader Joe's? ›
“It is an unspoken expectation to be nice to our customers. We hire exceptionally nice people, so we don't feel the need to train them to be friendly,” Rachel Levine said. Madison Valdez added to this idea, “We go above and beyond with our customers to make sure they find whatever they need.”
What's the big hype about Trader Joe's? ›
The eclectic and retail-fan-favorite Trader Joe's is well-known to its loyalists for its quirky culture and low prices on a unique selection of food items. The store doesn't carry many branded items, but it does offer a wide variety of interesting products (especially frozen ones) in the Trader Joe's label.
Do Trader Joe's employees flirt with you? ›
Are Trader Joe's Employees Flirting? "Can you please tell us once and for all, are our crew members told to flirt with customers?," asks Tara Miller, one of the co-hosts of the podcast. Bryan Palbaum quickly responds, "Definitively, no."
It costs money and takes lots of time and resources to track all your purchases, to give you a coupon targeted to your interest, to provide a deal that was paid for through a collection of the manufacturers, and maybe even that customer's own money. We're interested in removing costs.
What makes Trader Joe's customer service so good? ›
Employees are readily available (and excited) to help customers. Trader Joe's employees are bubbling with personality. They're encouraged to have fun at work and build connections with customers, even if it takes a few extra minutes to complete a task.
Why is Trader Joes so appealing? ›
"Trader Joe's con continuously gets the highest customer satisfaction scores from all grocery chains." They talk about what makes Trader Joe's so unique and popular, including their focus on community, curated selection, transparency around pricing, and exceptional customer service.
Why do Americans love Trader Joe's? ›
She mentioned the outgoing, charismatic employees who are encouraged to strike up conversations, its quirky hand-drawn signs, its low prices, its unique seasonal products, and its fun, laid-back atmosphere that helps it to stand out from the hustle and bustle of other popular supermarket chains.
What gives Trader Joe's a competitive advantage? ›
Many factors play a role in the success of Trader Joe's over the past years. Internally, they carry highly sought after products and have a loyal consumer base. They have found a foothold in the young and educated population. Generally, their products are highly unique and often can't be found anywhere else.
Why is Trader Joe's customer service so good? ›
1. Employees are readily available (and excited) to help customers. Trader Joe's employees are bubbling with personality. They're encouraged to have fun at work and build connections with customers, even if it takes a few extra minutes to complete a task.
Why does Trader Joe's have such a strong competitive advantage? ›
Their limited-selection, high-turnover model allows for a competitive advantage over their peers since they source and stock fewer SKUs, and keep most of their inventory on their shelves or in their distribution centers, strategies that decrease their costs and allow them to offer lower prices.
What separates Trader Joe's from competitors? ›
By manufacturing a line of private label offerings and cutting out middlemen, Trader Joe's has been able to keep value high and costs low, often at a fraction of what its competitors charge. Takeaway: Regularly research to ensure you are getting the best quality workmanship, materials, and goods.
