Want a Trader Joe’s store closer to where you live? There’s always hope, but you need a steady supply of patience as well. In a 2024 episode of the “Inside Trader Joe’s” podcast, Matt Sloan, TJ’s Vice President of Marketing, discloses the company’s somewhat mysterious process of choosing new store locations. However, it’s only mysterious to customers (like this writer) who can’t imagine life without a local Trader Joe’s to pop into whenever the mood strikes. With such devoted shoppers, why not have a store (or three) in every major city and most minor ones?
That’s indeed the question for those who must (and do) travel long distances to snag their favorite TJ’s goodies. Yet, the answer is far more practical than it is mysterious. It all comes down to common business sense, even though TJ’s business model is unlike most other grocery outlets. To maintain its “true neighborhood store” ethos and ambiance — despite operating hundreds of stores in 42 states, plus Washington D.C. — it’s crucial to carefully choose each location and assess the potential for success.
The primary factor that the company considers when opening a new location is population density, which could be one reason why some states don’t have a single Trader Joe’s store. Noting the grocery chain’s love and need for its numerous customers, Sloan remarks that, “First and foremost, we’re looking where people are.” However, that doesn’t mean simply placing a store in a large city and letting customers navigate the logistics of shopping there. Every aspect of the overall customer experience plays a role in determining where to open stores.
Balancing growth, people, and the shopping experience
As mundane as it may seem compared to the intriguing experience of shopping at a Trader Joe’s, one of the major considerations in choosing new locations is the mechanics of getting there. Sloan shares that TJ’s has a list of considerations, “and the criteria are really about access and ease of getting into and out of [the area] and the flow of traffic patterns.” With their “one store at a time” model, the grocery chain actively examines “a huge number of potential sites” to find the best fit.
Then there’s Trader Joe’s tricky parking logistics. Does this shopping center have enough parking to support a TJ’s? Sloan notes that each new location must accommodate a lot of traffic from various areas, as many customers will likely be driving in from elsewhere. “I know people think that we don’t care about parking. We do care about parking,” he says. “We want to make sure that we’re putting stores in places where it’s relatively easy to get in and out of.”
Additionally, the VP of Marketing reveals that opening a new Trader Joe’s store is a very deliberate process as the brand hopes to be in the neighborhood for the foreseeable future, growing one store at a time at a sustainable pace. It’s all about growth management, which also includes potential new employees. “We’d like to be in neighborhoods all around the country, but it takes time,” Sloan admits. “We’re not going to rush it, because rushing it would result in stores that don’t live up to our expectations, or quite honestly, to our customers’ expectations.” We may not like it, but that sounds pretty reasonable.
