Trader Joe’s
- Vintage Ale 2011 by Trader Joe’s
Trader Joe’s is a privately held chain of specialty grocery stores headquartered in Monrovia, California. As of October 2011, Trader Joe’s had a total of 365 stores. Approximately half of its stores are in California, with the heaviest concentration in Southern California, but the company also has locations in 30 other states andWashington, D.C. Trader Joe’s was founded by Joe Coulombe and is owned, since 1979, by a family trust set up by the late German businessman Theo Albrecht, one of the two brothers behind the German discount supermarket chain Aldi Nord.
Unlike typical grocery stores, which may carry 50,000 items (or SKUs), Trader Joe’s stocks about 4,000 items, 80% of which bear one of its own brand names.
Trader Joe’s describes itself as “your neighborhood grocery store” or “your unique grocery store”. Products sold include gourmet foods, organic foods, vegetarian food, unusual frozen foods, imported foods, domestic and imported wine and beer (where local law permits), “alternative” food items, and staples like bread, cereal, eggs, dairy, coffee and produce. Non-food items include personal hygiene products, household cleaners, vitamins, pet food, plants, and flowers.
Many of the company’s products are environmentally friendly. In October 2007, Trader Joe’s began to phase out foods imported from China amid concerns that standards on “organic” products from the country are not as stringent as they should be. Between February 2008 and April 2008, Trader Joe’s claimed to phase out single-ingredient products from China due to concerns over tainted goods. However, Trader Joe’s still refuses to provide basic ‘Country of Origin’ disclosures on most of its private label brands, a practice that continues to needlessly promulgate safety concerns with many of its customers without apparent benefit in the company’s policy of maintaining food source and supplier secrecy.
Trader Joe’s maintains low prices by having smaller and plainer stores and carrying a smaller variety of products and getting more turnaround on products they do carry, which enables the purchase of larger quantities of perishable items closer to the expiration date at better prices, knowing that they can be sold within shelf-lifelimits. Individual products are also discontinued more often than at larger grocery chains, due to increased costs, poor sales, or to free up space for new items.
Trader Joe’s sells many items under its own private labels, requiring their sometimes brand-name suppliers not to publicize this business relationship, and offers these products at a significant discount to brand-name equivalents. Their labels are sometimes named in accordance to the ethnicity of the food in question, such as Trader Jose’s (Mexican food), Trader Ming’s (Chinese food), Baker Josef’s (flour and bagels), Trader Giotto’s (Italian food), Trader Joe-San (Japanese food), Arabian Joe’s(Middle Eastern food), Pilgrim Joe’s (New England specialties, like clam chowder), JosephsBrau (beer), Trader Johann’s (lip balm), Trader Jacques’ (imported French soaps and candy), Joe’s Diner (certain frozen entrees), Joe’s Kids (children food), and Trader Darwin’s (vitamins and health supplements). By selling almost all of its products under its own label, Trader Joe’s “skips the middle man” and buys directly from both local and international small-time vendors.
Trader Joe’s is the exclusive retailer of Charles Shaw wine, popularly known as Two Buck Chuck because of its $1.99 price tag in California; in some locales, it sells for more than $3 a bottle due to varying state liquor taxes and transportation costs. Of the wine selection at Trader Joe’s, Coloumbe has said, “We built Trader Joe’s on wine first, then food. I tasted 100,000 wines, and most weren’t wonderful. They were submitted to us by desperate vintners.” Along with Charles Shaw, Trader Joe’s is known for stocking a very large selection of California and New-World wines.
Through its ownership by Aldi (managed by Aldi Nord; the southern division, Aldi Sud, runs Aldi markets in the United States), products branded with its name have begun to appear in ALDI MARKT (stores administered by Aldi Nord) in Europe. Products that have been made available include maple syrup, iced tea, salmon, dried plums, raisins, dried fruit, nuts, and crispbread.
The company has stated that products with the “Trader Joe’s” brand contain no artificial colors, flavors, or preservatives, contain no MSG or trans fats, and are sourced from non-genetically modified ingredients. This statement does not apply to products sold without the “Trader Joe’s” brand.
Trader Joe’s Vitamin Crusade High Potency multivitamin was tested by ConsumerLab.com in their Multivitamin and Multimineral Supplements Review of 38 of the leading multivitamin/multimineral products sold in the U.S. and Canada. Testing included amounts of selected index elements, their ability to disintegrate in solution per United States Pharmacopeia guidelines, lead contamination threshold set in California Proposition 65, and meeting U.S. Food and Drug Administration (FDA) labeling requirements.
Employees
Trader Joe’s pays above-union wages: as of 2010, full-time crew members can start at $40–60,000 per year and store managers can earn in the “low six figures.” It contributes to an employee’s standard 401(k) plan. As of 2004, pay for entry-level part-timers was $8 to $10 an hour.
Trader Joe’s also offers health insurance benefits (dental, vision, and medical) to part-time employees and their dependents. Part-time employees must work 900 hours per year (an average of 20 hours per week) and be employed for a minimum of three months consecutively to qualify. All part-time employees are evaluated every six months with the possibility of a pay increase. They also receive a 10 percent discount on items bought at the store.
Instead of public address systems, Trader Joe’s uses a bell system to communicate. One bell means that assistance is needed at the checkout stand by any available employee. Two bells means that any possible help is needed. Three bells notifies any manager of assistance needed.
Locations
As of October 2011, Trader Joe’s has a total of 365 stores in 31 states and Washington, D.C., with more stores being added regularly. One thing that makes Trader Joe’s unique is the size of its stores—most locations average between 8,000 and 12,000 sq ft (1,100 m2). In February 2008, Businessweek reported that the company has the highest sales per square foot of any grocer in the U.S. two-and-a-half years later, Fortune magazine estimated sales to be $1,750 in merchandise per square foot, more than double the sales generated by Whole Foods.
Environmental initiatives
At some locations, there is a weekly or monthly drawing for a gift certificate or bag of groceries for customers who bring in their own bags. Reusable bags are offered at many Trader Joe’s locations to reduce waste.
In November 2001 Trader Joe’s pledged to drop all genetically modified food from its product line. In 2009, Trader Joe’s pledged to use the Monterey Bay Aquarium Seafood Watch program to inform its purchasing decisions regarding sustainable seafood and to offer only sustainable seafood in stores by December 31, 2012.






