Trader Joes coming to Denver? (Lakewood, Boulder: 2014, university, eat)

[Malainie]

Actually, Albuquerque got a 2nd Trader Joe's a couple of years ago. They are always busy and the parking lot is always crowded!

[denverian]

Originally Posted by Malainie

Okay, for you Coloradoans, where I used to live, here's the latest from the Trader Joe's site:


1 Trader Joe's Denver Beer & Wine (310)
Coming Soon!
790 N Colorado Blvd
Denver, CO 80206
phone tbd
Trading Hours:
tbd
Alcohol: Beer Wine

2 Trader Joe's Denver Grocery (300) - Coming Soon!
750 N Colorado Blvd
Denver, CO 80206
phone tbd
Trading Hours:
Mon-Sun: 8am - 9pm
Alcohol: None sold

AND in Boulder:
1 Trader Joe's Boulder (301)
Coming Soon!
1906 28th St
Boulder, CO 80301
phone tbd
Trading Hours:
Mon - Sun: 8am - 9pm
Alcohol: Beer

So the Denver location will be two separate stores sitting, I surmise, next to one another.

It's not really two stores in Denver. Due to the goofy laws here, they have to have the alcohol section separate with a separate register. So it's basically going to be a regular TJs where you have to go out the door and back in next door to get your $2 Chuck.

[denverian]

Originally Posted by robertgoodman

All grocery stores claim to have variations of JIT models, but they are never true JIT. Trader Joe's isn't either, but it is closest known to a true JIT model. The time products sit on a shelf at a standard grocery store and their resultant inventory is substantially higher than Trader Joe's. Trader Joe's doesn't have a back-room and they generally rely on one daily delivery to arrive before opening to restock the items (which sometimes leads to supply shocks).

TJ's has a reputation of being a high quality low cost grocer with limited selection. They use their supply chain to undercut high quality stores like Whole Foods, Sprouts, Tony's Market etc. Therefore they are not really in direct competition with King Soopers and Wal-Mart. Furthermore with their reputation they have a very loyal customer base.

Smart and Final didn't move into Denver. SmartCo an attempted larger format by the company Smart and Final did. They moved into old Albertson's locations with larger more expensive stores, no thought to distribution, and nowhere near the customer loyalty that a Trader Joe's has. Quite frankly I am surprised they even lasted as long as they did. Additionally, they targeted completely different demographics than Trader Joe's is doing.

The distribution is a huge concern, and it is likely the reason Trader Joe's has waited this long to enter the market. They have been very careful about expanding in the past, and I have a hard time believing they would move here without doing their due diligence on that. Since it is their competitive advantage they tend not to publicize how they do this, but I am guessing the products are initially coming from their Phoenix network until they have enough stores within a days drive to establish something closer.

Location is of course key. Location with lots of people already going in and out like Colorado is perfect for them. Additionally, with a smaller store people linger for less time which is how they get away with less parking (of course they will likely be overwhelmed for the first few months).

The wine selection is not the only attraction to Trader Joe's. Things like 'gourmet organic fresh falafel' that's 4 dollars cheaper than what you get at Whole Foods is.

Personally, I am not a fan, but unless they made some bad assumptions on distribution I see no reason why they will not be successful here.

I read a couple years ago when they started opening TJs in Texas that they were building a big TJs distribution center in Ft. Worth. I would bet they stock the stores here from that center. Maybe NM too.

[robertgoodman]

Originally Posted by denverian

I read a couple years ago when they started opening TJs in Texas that they were building a big TJs distribution center in Ft. Worth. I would bet they stock the stores here from that center. Maybe NM too.

NM gets it from Phoenix. Fort Worth is a possibility though and might be more likely with more reliable roads I forgot about that one.

[davidv]

Originally Posted by denverian

It's not really two stores in Denver. Due to the goofy laws here, they have to have the alcohol section separate with a separate register. So it's basically going to be a regular TJs where you have to go out the door and back in next door to get your $2 Chuck.

Yes, but each person/corporate entity can have only ONE liquor license. That is why there are no chain liquor stores here. Each store must have a unique license and business/person is can hold only one license.

Bottom line: $2 Chuck will be available only at one Trader Joe's in the state. The rest of the TJs in the state will be without alcohol.

This article has a list of chains and which Colorado location sells liquor.

[denverian]

Originally Posted by davidv

Yes, but each person/corporate entity can have only ONE liquor license. That is why there are no chain liquor stores here. Each store must have a unique license and business/person is can hold only one license.

Bottom line: $2 Chuck will be available only at one Trader Joe's in the state. The rest of the TJs in the state will be without alcohol.

This article has a list of chains and which Colorado location sells liquor.

Yeah, I've noticed that all the chains put their "one" liquor store in the same central Denver area, from what I can tell. I read that if there is a pharmacy in the store (like Target or King Soopers) then they can have the alcohol right in the store. But since TJs doesn't have a pharmacy, it had to be a separate store.

[suzco]

Originally Posted by denverian

Yeah, I've noticed that all the chains put their "one" liquor store in the same central Denver area, from what I can tell. . .

Safeway's one liquor store is at the store at Mineral & Broadway in Littleton.

[Timmyy]

If you want to truly understand the liquor laws in Colorado and what not about beer you have to check out this movie. It is all about our micro brew mecca.

Beer Culture

[zenkonami]

Originally Posted by davidv

I deal with these issues when I teach Economic Geography, especially with the JIT production models. All grocery stores already have large JIT/high turnover processes in place because much of what they sell is perishable. TJs extends that for non-perishable goods as well selling only the most popular non-perishable goods to ensure high turnover.

TJs is going to face a couple of problems getting established here in Denver, including

a) Denver is quite isolated, and the delivery costs are much higher.
b) TJs has only one store to supply -- for now -- which will not allow them to realize advantages of bulk delivery.
b) Denver is a highly competitive grocery market and the big boys have the ability to match TJs in both price and organic offerings because they already have relationships with the local producers.

Smart and Final tried the smaller niche model here in Denver with 5 stores, and they did not last a year.

Without their trademark wine selection, there will be little draw people in.

The TJ model could work here, but they will have to pick their locations judiciously and realize that they are not going to seriously challenge King Soopers or Wal-Mart for supremacy -- especially since KS sells gasoline.

I think your right about the supply chain problems. That said, I don't think the competition is going to be a significant problem for them. TJs isn't really about their "2 buck Chuck" or organic food offerings...it's about the brand. Now, I'm not saying this is going to be their number one store, by a long shot...but if they are in the right neighborhood (the kind of neighborhood that loves that brand and the type of products and the way they market them), then they are going to do just fine, particularly against KS and Safeway...because they are a totally different store from those. If anything, their bigger threat is Whole Foods (and possibly Sunflower, but they just don't seem to be that big a player in Denver proper.)

All that said, I don't think people are going to flock for 500 miles frequently *just* to get $2 (though I hear it's more like $4 now) Wine. And if it's a walkable neighborhood then yes, parking will be an issue, but business will not.

[Scott5280]

Hilltop and Creek alone will float this store easily. Personally I'm jaded.. TJ's to me is no big whoop.just looks like other gourmet natural grocers that have existed in Boulder since the late 80's absent the cheap wine, but hey who needs anything other than Liquor Mart in Boulder. Just waiting for http://www.deandeluca.com/ to site a location in CCN.