This is Zack Fuss, an investor at Irenic Capital and today we are breaking down Trader Joe’s. Trader Joe’s is not a typical grocery chain. Their stores offer less choice, very few brands, constantly changing product lines, and no online option. Yet, they are adored and highly profitable. Their NPS score is industry leading and from what we can tell, despite offering lower prices, they generate more revenue per square foot than any dedicated grocery in the market.   To break down Trader Joe’s, I’m joined by Cristina Berta Jones, a long-time ecommerce and grocery investor who is now building an online supermarket business called Picnic. Together, we unpack the elements that have made this private grocery chain so successful for such a long period of time. Please enjoy this business breakdown of Trader Joe’s.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:16] - [First question] - Comparing and contrasting Trader Joe’s to conventional grocery stores and supermarkets [00:06:05] - Where Trade Joe’s fits into the food retail market and their size and scale [00:09:36] - The different sections of a store layout and what it feels like to shop there [00:11:47] - How many stores there are and how that compares to other large scale food retailers [00:13:17] - Some of the most interesting parts of the history of Trader Joe’s [00:15:15] - How Joe applied his market observations to building the company  [00:21:12] - The evolution and success of Trader Joe’s private label brand [00:24:31] - Differences between US and European grocery markets and overview of what a hard discounter is  [00:28:25] - Unique and different strategies on slotting fees and trade spend [00:31:23] - Reinvesting their overhead savings to offer lower prices to their customers [00:33:04] - Success despite not being a store where one does a full basket shop [00:34:08] - The way that the pandemic and delivery services impact grocery stores  [00:37:17] - The crossroads many grocers face between physical and online stores [00:41:43] - What makes Trader Joe’s defensible  [00:44:51] - Trader Joe’s approach to shrinkage and having better margins than their peers [00:47:05] - Self-distribution and what separates them from their competitors  [00:48:30] - Lessons for builders and investors from Trader Joe’s story   

This is Matt Reustle and today we are breaking down the historic General Electric. Honestly, approaching this episode was a unique challenge. Today’s GE barely resembles what was once the largest company in the world. So rather than purely focus on what’s remaining, we decided to use a lens of “then versus now”. To break down General Electric I am joined by Josh Aguilar, a GE Analyst at Morningstar and enthusiast on all things capital allocation. It’s a theme we revisit throughout the conversation on GE's time as a conglomerate, and its rise and fall. If you’d like to hear more on the early years of General Electric and particularly Thomas Edison – make sure to check out our newest Colossus teammate David Senra and his podcast Founders. David conveniently dropped a new episode on Edison this week, and after my conversation, you’ll hear a preview of that episode. So stay tuned for that, after my conversation with Josh. Please enjoy this breakdown of General Electric.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:04:05] - [First question] - What GE looks like today compared to its peak [00:07:42] - The reasons why GE lost so much of its power [00:15:14] - How much of their success can be attributed to being propped up by leverage   [00:17:18] - The strategy they’re operating with today and the businesses within GE [00:24:05] - Drivers in the decision to split up their business and end the conglomerate era [00:25:34] - Would they have made disposals if they were operating from a strong position  [00:27:15] - What their capital allocation and free cash flow will look like going forward [00:29:38] - GE’s centralized thought process of the past and their management style now [00:31:14] - Exxon Mobil: An Aging Energy Empire [00:32:23] - Driving factors behind their decision to transition towards green energy [00:34:36] - How the margin profile plays out and competitive dynamics of renewables [00:35:16] - Thoughts about conglomerates and what will work in the future  [00:37:07] - What could lead to GE’s success in the future over the coming years [00:39:43] - Main takeaways from his analysis of GE [00:43:52] - Clip from Founders about GE’s founder, Thomas Edison