If you are a regular or occasional shopper at a Trader Joe’s mall, you have probably noticed that sometimes some products disappear from their shelves. In some cases, it may be temporary when they are seasonal products. In other cases, they will no longer market those products or sell them in another format.
You may think that this product recall is only due to poor sales. A product can indeed be withdrawn because customers do not accept it well. But there are other reasons why the retail chain decided not to continue selling the recalled products. Some of these reasons are easy to understand, but others may surprise you.
The most common reasons for product recalls at Trader Joe’s
There are several reasons why the Trader Joe’s retail chain may recall certain products. Recently, as part of the company’s podcast, the chain’s employees gave us an answer to this question. The answers are interesting and, some of them, surprising. Let’s get to know them. It is clear that demand and prices will influence a product and its continuity, but is this really the only reason?
Low or slow product sales
Logically, this is one of the main reasons. When there is very little demand for a product, it ceases to be of interest to the company. We should not forget that this commercial chain is committed to private-label products, not external brands. Therefore, as the first reason for products to cease to be on the shelves of the retail chain, we find the fact of low sales or very slow sales of that product.
It is interesting to note that, as it hardly markets any external brands, all the profits of this commercial chain come from its direct sales. What is not sold does not provide any profit and ceases to be profitable because it will not cover the costs of production, packaging, etc.
Quality-related problems
Although infrequent, a product recall may also occur if the quality, over time, has also declined if it does not meet TJ’s standards. That has to do with the policy of maintaining a stable price/quality ratio.
Customer feedback
For Trader Joe’s, as it has stated on many occasions, customer feedback is very important. The fact of a positive valuation can be relevant when it comes to keeping a product in the market. On the other extreme, a product with very negative or negative ratings will be a serious candidate to stop being marketed.
Seasonality
That is a very interesting aspect that this grocery store firm considers. With each change of season, we find new products on the shelves of its stores. However, this implies that, at the same time, other products that have already expired their seasonality have to come out.
Space utilization
Trader Joe’s is distinguished by its very demanding use of retail space. The chain’s stores are smaller than the average size of its competitors’ stores. That enables them to cut costs but, at the same time, forces them to optimize space.
Improving the presentation of the retail space is very important. Therefore, in many cases, the decision must be made to prioritize some products over others. Logically, the products in greatest demand will have priority, but when faced with other products of similar request, the space they occupy can be a determining factor for their withdrawal.