skip to Main Content

Trader Joe’s Among Grocers in U.S. Innovation Index

Trader Joe’s led a group of food and pharmaceutical retailers named to Fordham University’s 2022 American Innovation Index.

The American Innovation Index (Aii), from Fordham’s Gabelli School of Business and market research firm Rockbridge Associates, rates and ranks the innovation of American companies based on the experience of their customers. This year’s study, conducted in July and August, covered 190 companies from 19 industries, including retailers, manufacturers, airlines, hotels, banks, TV and online service providers and service providers. of cell phones. Researchers surveyed 6,416 consumers and examined more than 30,000 customer-business relationships.

Trader Joe’s, based in Monrovia, Calif., was the only brick-and-mortar grocer to make Aii’s Top 25 list, ranking 15th with a score of 79.1. Amazon also made the top 25, finishing 19th with a score of 70.

American Innovation Index/Fordham University

Eleven retailers led the Aii “Supermarkets and Drugstores” sector, with Trader Joe’s (79.1), Whole Foods Market (76.7), Publix Super Markets (75.3), Aldi (74.7) and CVS (67.8) posting the top five scores. Kroger at No. 6 (score of 66.8), Albertsons at No. 7 (66), Walgreens at No. 8 (65.1), Safeway at No. 9 (61.2), Rite Aid at No. 10 (61.1) and Ahold Delhaize USA at No. 11 (59.6). Aside from Trader Joe’s, the top overall Aii finisher in this group was Whole Foods at No. 31.

Amazon, which topped the sub-index with a score of 78.8, and Costco Wholesale, whose score of 77.3 puts the warehouse club chain in second place, are grouped together in the industry benchmark. “General Merchandise Retailers” of the Aii. Also on the list in this sector were Target at No. 7 (score of 70.8), Dollar General at No. 8 (68.5), Dollar Tree at No. 10 (67.8) and Walmart at No. 11 (67.6). Excluding Amazon, the top overall Aii finisher in the GM retail group was Costco at No. 27.

The Aii 2022 indicates that U.S. business innovation has reached a five-year high, according to New York-based Fordham’s Gabelli School of Business. After a surge at the height of the pandemic, the Aii gained 5.6 points between 2018 and 2022. Fordham noted that the past five years have been “turbulent times” in the United States, as companies have been pushed to rethink their business models and meet quickly. – changing consumer needs and priorities.

Two supermarket retailers were among a dozen companies showing the biggest increases in innovation capacity over the past five years. Ahold Delhaize led the pack with a gain of 20.6 points, while Albertsons tied for eighth among the fastest growers with an increase of 11.2 points.

American Innovation Index/Fordham UniversityAmerican Innovation Index 2022-GM Retailers-Fordham University.png

Although customer loyalty has not increased dramatically over the past five years, rising an average of 3.7 points, Fordham and Rockbridge have found that innovation for the benefit of the customer is fading. The researchers said such innovation was directly linked to higher stock market returns, and that companies with higher Aii scores generally achieve higher loyalty and, therefore, more financial success.

“The best companies understand the effect of innovation on customer loyalty, and our research proves it,” according to Lerzan Aksoy, professor of marketing at Fordham University’s Gabelli School of Business. “Companies that invest in customer-centric innovation do better financially, but it takes time to reap the rewards of greater loyalty.”

Fordham and Rockbridge’s study also included the Social Innovation Index (Sii), which assesses business innovation that benefits society and the environment based on customer experience. The Sii has risen 5.9 points over the past five years, likely reflecting the impact of the pandemic, the social justice movement and the climate crisis, as well as a stronger focus on environmental, social and environmental policy. governance (ESG) in the field of American companies, the researchers said.

Whole Foods leads the Sii in the Supermarket/Drugstore sector with a score of 72.1, followed by Trader Joe’s (70), Aldi (69.8), Publix (69.3) and CVS (66) in the top five. In the GM distribution group, Amazon (score of 70) and Costco (67.5) are among the top 5 Sii in the sector among companies in the food/drug/mass distribution channel. Ahold Delhaize again saw the Sii’s biggest gain, up 16.9 points.

“Clients have noticed the best companies’ efforts to innovate for the greater good, and our research has proven that they care,” said Gina Woodall, president of Rockbridge Associates. “They reward companies focused on social innovation with greater loyalty, which in turn is reflected in the bottom line.”

Back To Top