Consumers view Trader Joe’s as high quality but inexpensive. How can Trader Joe’s afford to keep its prices so low? The biggest reason is that Trader Joe’s sells private-label products instead of well-known brands. Eighty percent of the products carried by Trader Joe’s are in-house. While that means customers can’t get those products anywhere else, it also means the grocer buys those goods directly from suppliers, cutting out the middlemen in a supply chain that can drive up costs.
http://www.businessinsider.com/here-is-why-trader-joes-is-so-cheap-2017-5
