Article: Trader Joe's Carves Out Niche.

Byline: John Boudreau

Jan. 13--Enter the new Trader Joe's in Los Altos, and it's as if you've walked in on a party.

The 11,000-square-foot store is decorated with palm trees. Workers wear Hawaiian shirts, jeans or khaki shorts and smiles. And there are crowds of people -- for despite the down economy, there are usually plenty of people at Trader Joe's.

In the highly competitive world of grocery retailing, Trader Joe's is an anomaly: a niche player that offers high-end gourmet food at low-end prices, often under brand names like Trader Ming's or Trader Giotto's. And so far that formula is working.

Trader Joe's appears to be thriving, ...

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