If It’s Not Broken, Why Fix It?

Recent headlines caught my attention not just for their content but for the powerful lessons they offer. Interestingly, there are a number of brands that dominate in their markets, yet struggle when attempting to break free from the models that once served them quite well. So, what is the lesson, and more importantly, how does it apply to you?  

Stop and Smell the Coffee 

Starbucks reverted to old tricks. The chain started offering ceramic mugs to dine-in customers, reserving bathroom access and water for paying customers only, and restoring condiment bars. The changes, implemented by CEO Brian Niccol, are designed to reimagine Starbucks as the premium “third place” it once was, for customers who hang out for a while and perhaps order additional items rather than those who place mobile to-go orders and leave. 

Back to the Warehouse 

After a decade-long experiment with brick-and-mortar stores, Amazon’s dominance online has yet to translate into a successful strategy for connecting with shoppers in the real world. The company has reduced its Amazon Go portfolio by about half since early 2023, bringing it down to 16 stores in four states. It has closed dozens of its other branded retail stores in recent years, including bookstores, fashion stores, and its Amazon 4-Star locations stocked with bestselling items from its website.  

Amazon Go stores were launched to develop technology that speeds up purchasing while saving on labor costs. However, decreasing the number of employees available to assist customers and prioritizing credit card payments limits sales and makes the shopping experience more cumbersome, said Nick Egelanian, President of retail-advisory firm SiteWorks Retail. “I don’t think they really understand retail,” Egelanian said. “Running warehouses and shipping stuff efficiently is not the same as greeting a customer and saying, ‘May I help you?’” 

Local Legends 

Trader Joe’s is accelerating its expansion, opening  34 new stores in 2024—more than three times the number added in 2023. But Trader Joe’s expansion strategy focuses on strengthening its presence in existing markets rather than entering new states. The grocer achieves this by ensuring that even when multiple locations open in the same neighborhood, each one offers a unique shopping experience.  

For example, some Trader Joe’s locations embrace the city’s nostalgic charm, while others are more modern. There isn’t a blueprint for Trader Joe’s store differentiation strategy, but each location has the ‘same but different’ flavor. In 2024, Trader Joe’s year-over-year visit growth consistently outpaced the broader grocery sector. This growth was driven by the company's low prices, unique private-label products, and the expansion of new locations, a trend the company plans to continue in 2025. 

What’s In It For You? 

As I previously stated, the lesson itself is that often the best strategy is to return to our roots—more specifically, what got us here today. It’s important to remember that solving the unmet needs of your consumer is the tried-and-true, never-fail strategy. These examples from Starbucks, Amazon, and Trader Joe’s amplify this and, more importantly, could be the catalyst for future successes.  

Consider these key takeaways:  

• Know your consumers and their preferences.  

• Satisfy their unmet needs, 

• Understand your markets and your consumers’ journey within those markets. 

• Identify your core strengths and use this to your advantage. 
• Don’t look to the competition when developing your model and strategy.  

How can we help? Consider a Strategy and Ideation Session that guides your team in creating actionable strategies and bold visions, led by our own Dr. Frank Niles, Principal Consultant for BSM’s Business Transformation and Leader Development Practice.   

Further support with our Consumer Strategy Practice, led by pet industry veteran Michael Johnson, is focused on understanding the evolving marketplace and changing consumer behaviors. We work with brands to develop market strategies that connect with consumers. Our full-service expertise helps brands of all shapes and sizes make impactful comebacks and effectively engage consumers.  

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About the Author

Eric Rittenhouse works at BSM Partners as Business Development Manager. His areas of expertise include business development, sales and trade marketing while helping brand companies uncover and execute on opportunities to strategically dominate their niche in the consumer product space. He has completed the Blue Ocean Practical Introduction certificate by the Blue Ocean Academy and is Action Selling Master Certified by Action Selling and The Sales Board.