Aldi » Aldi in USA » Trader Joe's (Aldi Nord) (Supermarkets)
Total Sales
USA: KRW 16.5 trillion
Trader Joe's (Aldi Nord): KRW 6.8 trillion
CAGR 2004-2009
USA: 13%
Trader Joe's (Aldi Nord): 14%
Number of Stores
USA: 1391
Trader Joe's (Aldi Nord): 338
Senior Management
Banner President
Mr Dan Bane
Website
www.traderjoes.com
Location
5049
Monrovia, CA
91017
Private Labels Strategy
There are about 3,000 to 3,200 articles on sale. Most of them are privately labelled products at value for money prices. Trader Joe’s
product range is based on a selection of high quality, health and gourmet foods, at discount prices. Private labels account for 80 to 85%
of its ranges, enabling the company to sell such quality and sometimes off-beat food products at low prices. According to the company,
all the private label products have 'their own angle', i.e., vegetarian, Kosher, organic or just 'plain decadent', and all have minimally
processed ingredients.
There are different category labels with Trader Joe's being the main brand for most of its own label ranges.
Trader Joe's pursues a rather playful approach not only when it comes to advertising, but also to labelling its
products. For example, a fruit-filled cereal bar is called "This Strawberry Walks Into a Bar". Items of French origin
are named "Trader Jacques'", whereas Italian products are branded "Trader Giotto's" and Mexican food is named
"Trader José's".
According to press reports citing a Trader Joe's manager, every new product first goes through Trader Joe's own
tasting panel. When the buyers - in early 2006, there were 14 category leaders, i.e. buyers that form the tasting
panel as well - return from their travels to Europe, South America and Asia, they bring back new items, and then
the panel gets together a few times a week to taste them. The retailer is said to introduce 10 to 15 new items a
week, which often are unique to Trader Joe's, with their own recipes.
According to the company, "we take our favorite things and strip away all the 'stuff' that makes them expensive stuff like brand names, big market-research budgets and glitzy ad campaigns. (...) We do private label because it
helps us keep our costs low. We do private label because it allows us to try new things. Most important of all, we
do private label because it just tastes better."
Private Labels: At A Glance
Brand
Position
Product range
Charles Shaw
Standard
Drinks
Joe-Joe's
Standard
Ambient
Joe's O's
Standard
Ambient
Next to Godliness
Standard
Household goods
Trader Darwin's
Standard
Drugstore
Trader Giotto's
Standard
Food
Trader Jacques
Standard
Food
Trader Joe's / TJ's
Standard
Ambient, Drinks, Drugstore, Food, Fresh, Frozen
Trader José's
Standard
Food
Trader Zen
Standard
Drugstore
Traderade
Economy
Drinks
Walmart
Total Sales
Worldwide: KRW 547.5 trillion
USA: KRW 410.3 trillion
CAGR 2004-2009
Worldwide Sales: 9%
USA: 8%
Top Markets
USA, UK, Mexico, Canada, Brazil
Number of Stores
Worldwide: 8449
USA: 4304
President & CEO
Mr Michael Duke
Website
www.walmartstores.com
Private Label Strategy
Own label forms an important component of Wal-Mart's low price strategy. The first own label
products were introduced in 1982 - dog food sold under the 'Ol Roy label - designed as a low
price alternative to national brands.
Own label products have since been introduced across
thousands of lines, to fill price gaps left by national brands.
Its cheapest line of products is
marketed under its Great Value range while in health and beauty for example, it has developed a
high quality Equate range. The Great Value range received a significant overhaul in 2009.
The development of global brands is a key factor driving Wal-Mart's international success. It is
looking at the opportunities for exporting brands from the US around the world and vice versa.
For example, Asda's successful George clothing range in the UK has been taken to the shelves of
Wal-Mart in the US, Argentina, Brazil, Canada, Mexico and Japan.
Private Label Concepts
ATVIO
Electricals line introduced in Mexico in 2008.
Best Occasions
Wedding stationery and accessories, a range that encompasses items from wedding invites and
photos albums to place name cards and cake accessories.
Better Homes and Gardens
Home & garden range launched 2008.
Canopy
Home goods launched 2008.
Energy Value
Energy-efficient lightbulbs.
Handiworks
Tools & DIY.
La Mode
Clothing range sold at Suburbia (Mexico).
Metropolis
Clothing range sold at Suburbia (Mexico).
Non Stop
Clothing range sold at Suburbia (Mexico).
Ocean Pacific
Brand owner Iconix Brand Group signed an exclusive direct-to-retail license agreement with
Walmart for its Ocean Pacific and OP brands for distribution of a broad range of apparel and
accessories in the United States in 2007. The agreement also granted Walmart rights to use the
brands in Brazil, China and India, and provided for the possible addition of license rights for other
international territories in the future.
Things Contempo
Clothing range sold at Suburbia (Mexico).
Weekend
Clothing range sold at Suburbia (Mexico).
Target in USA
Total Sales
Worldwide: KRW 85.4 trillion
USA: KRW 85.4 trillion
CAGR 2004-2009
Worldwide Sales: 6%
USA: 6%
Top Banners
Target, SuperTarget
Number of Stores
Worldwide: 1740
USA: 1740
President & CEO
Mr Gregg Steinhafel
Private Label Strategy
Target has developed own labels in clothing, health & beauty and household goods for its SuperTarget and
Target chains and is in the process of further developing its Archer Farms and Market Pantry grocery own brand
ranges (supplied by SuperValu). As of 2008, grocery own brands account for around 20% of total sales, with a
goal of increasing own label penetration by 2% - 3% annually over the next several years.
The Archers Farms and Market Pantry grocery own brands have been expanded rapidly in recent years,
although the company still regards these brands as "underpenetrated". Archer Farms is said to provide "quality,
freshness and value" by offering premium, high quality products such as the fresh produce, gourmet groceries,
fine meats and European-style baked goods at affordable prices. Market Pantry is more of an economy range "providing big taste to staple food items at prices lower than national brands."
The supercentre division SuperTarget is looking to bolster its own-label grocery ranges as part of an effort to
increase shopper loyalty and emphasise its low price positioning. Having already redesigned its Market Pantry
economy range, a range that it is to increase to 1,000 SKUs, it is to overhaul its standard private label range,
Archer Farms, and expand the portfolio to around 1,900 lines.
The grocery PL range was enhanced through the 2006 launch of LIFELong, a new exclusive brand of superpremium pet food, and the launch of organic Archer Farms lines in 2006.
In non-food, Target has a number of very well established private and exclusive ranges in apparel and household
goods. The retailer often links up with well-known designers or TV stars to launch new lines and also benefits
from holding the US licence for the Cherokee clothing range.
In 2009/10, Target will relaunch two of its own brands to more clearly communicate their value to its shoppers.
The retailer has consolidated more than eight PLs across multiple divisions to create a stronger presence for
Circo, its exclusive brand for kids across all merchandise categories. In Target Home the retailer has taken a
similar approach by consolidating multiple sub-brands into a single brand with quality enhancements and
redesigned packaging that better calls out product features and benefits.
In response to encouraging sales of its new up & up private label range, Target is planning to increase the
number of lines to around 800 by the end of 2009 and to dedicate more shelf space in the most successful
categories. The up & up name began to replace the Target range, with the traditional bullseye logo, at stores in
March 2009. The range comprises 800 everyday essential products from across the store - spanning more than
40 categories - including household, healthcare, beauty, baby, and personal care. Nearly 100 of the items are
brand new for 2009, including a few new categories such as cotton balls and swabs, laundry detergent and baby
food. The up & up brand is equal in quality to national brands, but at a lower price, offering a savings of 30% on
average.
Private Label Concepts
Archer Farms
Archer Farms is a premium, affordable brand of groceries found throughout Target and SuperTarget stores. The
Archer Farms brand offers superior-quality product offerings with zero grams added trans fat, including a wide
variety of premium groceries, cooking ingredients, organic food choices, European-style baked goods, healthy
food options and frozen appetizers. From ready-to-cook meats, breads, juices, kettle chips and cereal to imported
olive oil and fair trade coffee, the exclusive Archer Farms collection features food products with innovative and
unique flavour combinations created from premium ingredients from around the world.
Archer Farms Simply Balanced
Healthy eating range introduced in late 2009. Archer Farms Simply Balanced includes more than 70 products,
such as pasta, cereal, bread, crackers, granola bars and frozen pizza.
Choxie
The Choxie collection is crafted using the finest ingredients, including fruit, exotic spices, fragrant teas and the
highest-quality cocoa. Wrapped in brightly-coloured packaging, Choxie chocolate varieties include a Signature
Collection, Single Origin Tasting Kit, Chocolate Truffle Bars, Truffle Temptations, Artisan Truffles, Meltaways and
Flakey Truffles.
Circo
Kidswear clothing & accessories range.
Durabuilt
Tools & DIY products. See www.durabuilt.com
Embark
Luggage & travel goods.
Giada De Laurentiis for Target
Cookware products and specialty food items launched 2010.
Gilligan & O'Malley
Intimates, lingerie, sleepwear etc.
Kaori
Soft furnishings, textiles etc.
Market Pantry
The Market Pantry collection offers the quality of a national food brand at “a fraction of the price.” The Market
Pantry range comprises snacks, cooking ingredients and drinks. By offering the basics such as cheese, flour and
sugar, Market Pantry goods are ideal for shoppers who cook from scratch. Market Pantry also includes filtered
and flavoured bottled water, and a wide assortment of cheeses, milk, eggs and soup. For families on-the-run,
convenience is key with Market Pantry pizza, pre-sliced deli meats and shredded, barbeque meats in re-sealable
containers.
One Star
Exclusive range supplied by Converse; launched early 2008.
Prospirit
Sportswear, watches, leisure accessories.
Smith & Hawken
Outdoor furniture, gardening and décor solutions. Brand acquired 2010.
Sutton & Dodge
Sutton & Dodge, a SuperTarget exclusive, delivers a full menu of premium quality USDA Choice Angus beef
that’s naturally aged and hand-trimmed. The range includes a variety of cuts such as filet, strip, rib eye and tbone steaks and roasts.
Trutech
Electrical PL. Comprises extensive mix of AV equipment and components.
up & up
800 everyday essential products from across the store - spanning more than 40 categories - including household,
healthcare, beauty, baby, and personal care.
Wine Cube
Target Wine Cubes offer high-quality wine without the fragile glass packaging typical of bottled wine. Target
offers guests the opportunity to experience the Wine Cube in a number of varietals, including Merlot, Chardonnay,
Cabernet Sauvignon, Pinot Grigio, Australian Chardonnay, Cabernet Sauvignon/Shiraz blend and Red and White
Sangria. Wine Cubes are available in three sizes: 3-litre equivalent to four bottles of wine, 1.5-litre equivalent to
two bottles of wine and a 4-Pack in which each single serve holds a bit more than a glass of wine.