Trader Joe's shares little
TRADER Joe's executives have explained why beloved products seem to regularly disappear from the chain's shelves.
It's no secret that Trader Joe's isn't a traditional grocery store, but the company's unique practices go beyond the chain's interior decor.
Matt Sloan, a marketing executive, and Tara Miller – the self-described director of words, phrases, and clauses at Trader Joe's – explained the situation during an episode of the chain's podcast.
One important factor is that Trader Joe's locations tend to be smaller than other grocery stores.
"We just physically don't have room to carry things that aren't popular, as disappointing as that is to hear and experience," Sloan said.
At the same time, the company doesn't engage in a common practice that allows unpopular products to stay on the shelves at other stores.
Food manufacturers will sometimes pay "slotting fees" so companies like Kroger or Walmart can keep unpopular items in front of customers.
But this isn't an option for Trader Joe's, which mostly sells products from its own in-house brands.
"At Trader Joe's, the only way we make money is when the customer buys something at the cash register," Miller said.
"We’re not getting paid by the producer of that product to keep it on the shelves. And our business model says let's develop something new that might sell better and make more customers happy."
The company recently discontinued its cilantro and jalapeño hummus, leaving many shoppers upset.
"NOOOOOOOOOOOOOOOOOO!!!!" one Twitter user said.
"It's basically the only reason I ever go there."
Trader Joe's also recently got rid of a popular vegan seasoning that mimics the flavor of many chicken recipes.
It contained salt, onion powder, garlic powder, and turmeric.
The beloved multigrain waffles were also recently axed by Trader Joe's, but the company is rolling out a new line of whole-grain waffles to replace them.
TRADER Joe's executives have explained why beloved products seem to regularly disappear from the chain's shelves.