Trader Joe's Coming To Texas (Dallas, Austin: cost, bill, budget)

[texastrigirl]

Here's the Fortune article on TJ's. It speaks to exactly why they are not yet expanding to Texas...

Inside the secret world of Trader Joe's - Aug. 23, 2010

[passionatearts]

Originally Posted by texastrigirl

Here's the Fortune article on TJ's. It speaks to exactly why they are not yet expanding to Texas...

Inside the secret world of Trader Joe's - Aug. 23, 2010

Thanks for the article. According to the article, "Texas and Florida have cities that boast consumers Trader Joe's covets, but insiders say the current distribution infrastructure makes it difficult for the company to efficiently get products to those states." I wish I knew what they mean by this sentence. What is "difficult" about the "distribution infrastructure" in Texas and Florida?

[austinnerd]

Originally Posted by passionatearts

Thanks for the article. According to the article, "Texas and Florida have cities that boast consumers Trader Joe's covets, but insiders say the current distribution infrastructure makes it difficult for the company to efficiently get products to those states." I wish I knew what they mean by this sentence. What is "difficult" about the "distribution infrastructure" in Texas and Florida?

Judging by the article, it sounds like they either A) simply don't have a distribution center close enough to these two locations and/or B) the bulk for their suppliers are not close to Tx or Fl. At the very least A makes a lot of sense because they started out west and then expanded to the northeast, so central and southeast probably don't have a distribution center yet. Based on their operations, I assume this isn't just simply building a big building, so until they get serious enough to want to _really_ expand into those markets, it's no TJ's for Austin. Put another way, due to the way their stores are intimately tied to the DC's, they can't just float a trial store anywhere they want regardless of how lucrative the market might be. It's not quite all or nothing, but it does require a serious commitment.

[passionatearts]

Originally Posted by austinnerd

Judging by the article, it sounds like they either A) simply don't have a distribution center close enough to these two locations and/or B) the bulk for their suppliers are not close to Tx or Fl. At the very least A makes a lot of sense because they started out west and then expanded to the northeast, so central and southeast probably don't have a distribution center yet. Based on their operations, I assume this isn't just simply building a big building, so until they get serious enough to want to _really_ expand into those markets, it's no TJ's for Austin. Put another way, due to the way their stores are intimately tied to the DC's, they can't just float a trial store anywhere they want regardless of how lucrative the market might be. It's not quite all or nothing, but it does require a serious commitment.

They'd be foolish to ignore Texas and the South in general, as these are among the fastest growing areas of the country right now and would be incredibly lucrative markets. Austin, in particular, has the exact demographics they're looking for.

[10scoachrick]

Originally Posted by passionatearts

They'd be foolish to ignore Texas and the South in general, as these are among the fastest growing areas of the country right now and would be incredibly lucrative markets. Austin, in particular, has the exact demographics they're looking for.

They're not ignoring the 'South'. They've been in Atlanta for a few years and recently in Charlotte. South EAST, I know; but still South.

Did I mention...I'd be happy to help them open at Avery Ranch!

[austinnerd]

Originally Posted by passionatearts

They'd be foolish to ignore Texas and the South in general, as these are among the fastest growing areas of the country right now and would be incredibly lucrative markets. Austin, in particular, has the exact demographics they're looking for.

Never said that they were "ignoring" the south, the article explicitly states that they'd "love" to be in this market. I was just pointing out that the logistics of their operation seems like it makes it such that they require more time/effort/commitment/planning to enter an entirely new geographic zone. They don't seem likely to simply purchase/partner with an existing outfit to "get a foot in the door". I'm not a shareholder, but from a business standpoint I think it makes a lot of sense for them to approach cautiously. That said, I'd be shocked if they aren't actively planning a Tx launch given that we're one of the few states that is generally doing well.

[G Grasshopper]

As a new Texas resident (about a week), I will miss Trader Joe's, I'm sure. But it won't kill me. I will adapt and come up with new habits. If it does come to town, how often I shop at TJ's may depend on how convenient the location is to me. It may just be a twice-a-year-stock-up-on-favorites event. I loved the song and video, although the thing about carts locking up is not something I've ever seen.

[Jennibc]

Originally Posted by austinnerd

Never said that they were "ignoring" the south, the article explicitly states that they'd "love" to be in this market. I was just pointing out that the logistics of their operation seems like it makes it such that they require more time/effort/commitment/planning to enter an entirely new geographic zone. They don't seem likely to simply purchase/partner with an existing outfit to "get a foot in the door". I'm not a shareholder, but from a business standpoint I think it makes a lot of sense for them to approach cautiously. That said, I'd be shocked if they aren't actively planning a Tx launch given that we're one of the few states that is generally doing well.

It's a privately held company so they only lay out capital and expand when they have the resources to do so. I am sure they take loans out, and I bet their credit is outstanding, but perhaps they just aren't able to raise the money to expand their distribution infrastructure right now. And don't count on an IPO anytime, the owners are completely unwilling to give up the control that goes along with being a publicly traded corporation.

At least that's what they were saying a few years ago. I didn't read the Fortune article so maybe they've changed their minds and the article completely contradicts what I just wrote

[doctorjef]

Who needs Trader Joe's when you've got Central Market and Whole Foods! We've got Trader Joe's here and I could care less. Can't hold a candle to Central Market or even Whole Foods (and sadly the Whole Foods in Philly can't hold a candle to the Whole Foods on Lamar).

[Jennibc]

Originally Posted by doctorjef

Who needs Trader Joe's when you've got Central Market and Whole Foods! We've got Trader Joe's here and I could care less. Can't hold a candle to Central Market or even Whole Foods (and sadly the Whole Foods in Philly can't hold a candle to the Whole Foods on Lamar).

Clearly, you are not the price-sensitive consumer that I am