Curious Alaska is a weekly feature powered by your questions. What would you like to know or investigate about life in Alaska, stories behind the news, or why things are the way they are? Let us know in the form at the end of the story.
Question: What does it take to get a Trader Joe’s in Anchorage? Is there a reason Anchorage’s demographics don’t fit its business model? Seems like this place is pretty popular here.
Trader Joe’s is one of several popular retail and grocery chains that didn’t make it to the 49th state; others we are occasionally asked about are Ikea and Whole Foods.
When contacted directly, the companies didn’t say much about why they’re not present in Alaska. But there are some pointers.
First of all, Trader Joe’s.
It is not uncommon for an arriving visitor from the Lower 48 to stow a few packaged goods in their luggage for Alaskans who long for a glass of cookie butter or a shaker with Everything But the Bagel spices, for example. Trader Joe’s has built its identity and a loyal following around its low prices, niche flavor offerings, and relaxed atmosphere.
One person who always brings an extra bag of coveted Trader Joe’s items when traveling to Alaska is Kirk DesErmia, who started a Bring Trader Joe’s to Alaska page on Facebook that is liked by nearly 2,300 people.
The 49-year-old father of two lives in Seward but grew up in Trader Joe’s stores in Southern California.
He thinks Anchorage is an ideal location for the chain. He suspects it would be so popular that a store here would have to be almost “Costco-sized” or there would have to be multiple locations in Anchorage.
“If it got here, I mean they’d better make it twice the size of their regular model because it would be jam-packed and impossible with long lines,” he said.
A few years after starting the Facebook page in 2012, DesErmia was interviewed on an episode of the Freakonomics podcast.
That was around the time he finally heard from the folks at Trader Joe’s. They emailed the option of a store in Anchorage, DesErmia said. The company puts in an annual expansion plan, and with so many opportunities in the Lower 48, the added logistical challenges of moving goods to Alaska meant Anchorage wouldn’t make the list, according to DesErmia.
“It didn’t leave me very optimistic,” he said.
His Alaskan trader Joe’s advocacy Facebook page remains active, and he often posts photos of his Trader Joe’s forays from recent trips outside.
Trader Joe’s, who are California-based and owned by a German family who are also affiliated with Aldi bargain stores, had no officials available to comment on Curious Alaska. However, a representative noted in an email that the grocery chain’s podcast – Inside Trader Joe’s – briefly addressed the issue in 2018.
“Opening stores outside of the 48 states requires us to solve unique logistical and operational issues, and we would only open stores where we can deliver real value to our customers,” said Dan Bane, CEO of Trader Joe Podcast episode.
When it comes to whole foods, some locals may still be a bit sensitive after a debacle in 2017 when a sign on a fence on a property on Third Avenue announced that the health food giant was opening a location at that location. It was a joke. A similar sign claiming that Trader Joe’s would open a location in the now-demolished Northern Lights Inn in Midtown also popped up in 2017.
Representatives from Whole Foods, owned by Amazon, did not respond to requests for comment on the story. Back in 2017, in response to the fake sign, a company official said they had no upcoming plans for a location in Anchorage.
But Dave Bronson, the new mayor of Anchorage, told the Daily News during his mayoral election this spring that he might envision a Whole Foods within walking distance of a downtown skyscraper.
On its website, Whole Foods lists factors to consider before opening a new location, such as: B. Whether there are at least 200,000 people within a 20-minute drive and whether there are a high number of residents with higher education.
Less information is available about Ikea, whose relatively affordable Swedish furniture designs (and meatballs) have attracted a fan base of their own across the country. A representative from the US office of the furniture store wrote in an email that while Ikea was trying to expand its brand in the US, it had no plans to open a store in Alaska, saying that “there is an extensive process in place to convert to see if a market can support “. an IKEA house, and where a market stands in comparison to other metropolitan regions. “
Companies planning new locations have formulas that typically include square footage, proximity to the population, space to park, the location’s income bracket, and the ability to get their products to arrive on time, Mark Begich said. He is currently president of the Northern Compass Group, a former US Senator for Alaska and previously Mayor of Anchorage.
Still, Begich puts a lot of emphasis on bringing Alaska and Anchorage to business: while the city may not fit into a traditional formula, it can still meet or exceed certain criteria, he said. Begich noted that while the city only has about 300,000 residents, there are also buyers from Mat-Su and other parts of the state. In addition, many tourists arrive in the summer.
Instead of asking why certain companies aren’t here, Begich suggested that it be better to ask, “Why aren’t they here yet?”
Despite the lack of stationary locations in Alaska for these businesses and others with a loyal following across the country, there are many local opportunities for similar goods and services. There are Natural Pantry and Blue Market AK for people looking for organic and natural products, and specialty markets like New Sagaya, Mexico Lindo, New Central Market or Anchorage Halal Market for those looking for something specific. Ikea items can be ordered through Anchorage company Shop + Deliver, but there are plenty of furniture options available at local stores that would love your store too.
source https://thedailytradingnews.com/curious-alaska-why-dont-we-have-a-trader-joes-or-ikea-or-whole-foods/
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