Trader Joe's
The constraints are the brand.
Historical and episode-reported figures
Overview
Business model and origins
An educated, well-traveled customer who is not rich deserves the kind of interesting, unusual food that only wealthy people can currently find at specialty stores — at prices anyone can afford, achieved by selling almost entirely private-label products in a tiny footprint.
Origin
Joe Coulombe opened the first Trader Joe's in Pasadena in 1967. The original insight was demographic: the post-WWII generation was increasingly educated and had traveled internationally, developing tastes for foods outside mainstream American grocery. They wanted interesting products but could not afford specialty store prices. Coulombe's solution was radical SKU discipline: stock ~4,000 SKUs versus 50,000 in a conventional supermarket, and make ~80% of them private-label. The private label removed the power of branded consumer-goods companies to dictate terms. Trader Joe's buys directly from manufacturers, sells under the Trader Joe's brand, and captures the full margin. The result: prices that feel like a deal on items that feel curated.
Hooks from these episodes
Trader Joe's breaks almost every rule of modern retail — limited SKUs, no national brands, no loyalty programs, no online ordering — and is more profitable per square foot than any competitor.
The constraints are the brand.