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Erika Alvarez, a new mother in Camarillo, California, loves Trader Joe’s. She really, really loves Trader Joe’s. You could call her a superfan.
“I’m Trader Joe’s number-one cheerleader,” she said. “It’s not a normal grocery store.”
She isn’t alone in her loyalty to the company. They actually enjoy a quiet cult-like status.
“I’ve always loved Trader Joe’s,” Ms. Alvarez said. “It brings the community together.”
Maybe it’s the great meat selection, the crave-worthy, private-label snacks, or their perfect house-brand seasonings. Maybe it’s the fact that the uniform includes Hawaiian shirts or that kids can earn a free lollipop or stickers for finding the store’s hidden stuffed animal mascot.
It’s such a popular grocery store that cities vie to be next on the list for a store location. Trader Joe’s has around 600 locations throughout the United States. Owned by Aldi Nord, it employs more than 50,000 people who have marine-themed titles like crew, mates, and captains.
“It was a big deal for Trader Joe’s to open in Parker,” said Councilwoman Anne Barrington of Parker, Colorado. “Our economic development team surveyed residents about which retailers they’d most like to see in Parker, and Trader Joe’s definitely topped that list.”
When Trader Joe’s comes to town, it brings in more than just neighborhood shoppers. New businesses open and visitors from other towns and cities come, too. You could call it “The Trader Joe’s Effect” — stable employment for residents, a friendly atmosphere, and a popularity that attracts economic growth.
Image Source: AdobeStock
Happy employees make happy customers, and those happy people are happy residents. But it’s not so easy for elected officials to get the attention of Trader Joe’s.
According to Donnie Martin, Trader Joe’s vice president of real estate and construction, only 20 percent of the site submittals pass the company’s tests and receive an internal review. Then, only half of those reviews move on to the next stage of development. In 2022, they were considering around 200 to 219 new sites, which can take anywhere from a couple of months to a couple of years to open.
“We have to stay focused. Our goal is to get 20 to 25 stores a year opened,” he said in a company podcast interview. “If we took on every request and spent time looking into every one of those, our focus and our drive shifts.”
When the company expanded into Colorado in 2014, many property owners, brokers, developers, and town representatives from Parker worked to recruit them. For years, Councilwoman Barrington said Trader Joe’s considered Parker as a potential location — in the future.
She knew that Trader Joe’s was primarily interested in towns with larger populations, even though the stores were relatively small. One study found the stores are usually under 15,000 square feet and carry about 4,000 units of inventory. Walmart, in comparison, can be as large as 186,000 square feet with an average of 5,208 units of inventory.
Image Source: AdobeStock
A spokeswoman for Trader Joe’s confirmed that community size and density — along with accessibility of building — were key factors in their expansion plans. “Since Trader Joe’s began in 1967, we have been in growth mode,” Nakia Rohde, a spokeswoman for Trader Joe’s, wrote in an email to Community Playmaker. “Our goal is always to bring delicious products at great value to as many people and neighborhoods as we can. The best way to do that is to open more stores.”
Parker currently has around 65,000 residents, but the nearby surrounding communities double the density. Eventually, the town grew enough both in population and affluence to catch the attention of the company. Trader Joe’s picked a property right next to the town’s Costco, which is one of the busiest in the state.
“I don’t think just any community would be as apt to shop at a Trader Joe’s. They also look for an affluent community,” Councilwoman Barrington said. According to Data USA, the median household income in Parker was $126,615 in 2022. To compare, the national median household income during that time is $75,149.
She explained that before the store opened, the planning department worked directly with the commercial real estate developer rather than the company. Even though they were excited about the store, Trader Joe’s had to go through the permitting process just like everyone else.
For Parker, the Trader Joe’s effect was an economic driver that went well beyond the 70 new, stable jobs filled mostly by residents. In the last two years, new businesses have been opening with the additional commercial traffic in the area.
“They’re a foundation for our community, and not only for our residents. People will drive for miles just to shop there,” Councilwoman Barrington said. “We love that because that brings sales tax dollars into Parker, and that funds our town.”
It’s hard to imagine people talking this way about almost any other grocery chain in America. Trader Joe’s is well-loved, despite lacking social media, advertising, or other outreach initiatives beyond an inhouse podcast and a newsletter called The Fearless Flyer.
“They don’t have a marketing department because they don’t need it,” Ms. Alvarez continued. “We don’t even run sales.”
Image Source: AdobeStock
Instead, each store quietly supports its home neighborhood. Murals specifically designed to highlight local attractions and history fill the walls. They also donate leftover food regularly to local nonprofits, totaling $469 million worth of donations in 2023 alone.
They also take extra care of their employees who make, on average, around $35,700, according to ZipRecruiter. Walmart employees, on average, make around $25,000, according to Indeed.com.
Trader Joe’s employees also get a store discount, healthcare options, and consistent raises. Plus, the staff rotates responsibilities every hour to keep everyone fresh throughout their workdays. If a crew member doesn’t want to stock frozen foods one day, they don’t have to.
Ms. Alvarez remembers going to Trader Joe’s while growing up in Sacramento, but she fell in love with the company when she moved to the Ventura area with her husband. She didn’t know anyone, and she made a habit of going to Trader Joe’s every day during the lunch hour of her full-time job in the tech industry. Her coworkers were always jealous of her “gourmet meals,” which also happened to be easy and affordable.
It wasn’t long before she got to know the people who worked there. Everyone was so friendly and happy to be there, she said. So, when she got laid off during the COVID-19 pandemic, she applied to work in the store. She worked there for two years as a crew member before taking maternity leave with her baby, Stella.
“Every day when I go to work, it’s a good place to be,” she said. “We want everyone to be excited to come into the store and feel like it’s a unique experience.”
Image Source: Anne Barrington
In an interview for the Trader Joe’s podcast, CEO Bryan Palbaum said fun is a byproduct of simply allowing the people who work there to be themselves. There are no plans to install self-checkouts because they prefer to encourage human-to-human interactions. The low employee turnover rate should be no surprise.
“We have so many people that have been here for quite a long period of time. I’ve been here myself for almost 21 years,” Mr. Palbaum said. “We’re not trying to change anybody.”
Ms. Alvarez said she never thought that she would be working at a grocery store after years in the tech industry. But she said it feels good to know that her coworkers and customers truly care about her, just as she cares about them.
Trader Joe’s is more than a grocery store; it’s a community anchor. Parker, Colorado, exemplifies the “Trader Joe’s Effect,” where the store boosts local commerce and fosters community pride. Erika Alvarez’s transition from tech to Trader Joe’s crew member highlights the brand’s unique appeal and supportive environment. Trader Joe’s success lies in its simplicity: great products, warm atmosphere, and genuine connections. It’s a model where employees thrive, customers feel valued, and communities flourish. In an era of big box dominance, Trader Joe’s offers a refreshing, community-focused alternative.”
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