Another Concept: Trader Joe’s
In many cases today, the threat to supermarkets comes not from other supermarkets but from other concepts — be it supercenters, warehouse clubs or food sections in non-traditional food outlets, such as drug stores. While we were in Portland, we decided to visit a Trader Joe’s to see how this fast-growing but distinctive format of mostly private label gourmet foods is stacking up on produce pricing. Because Trader Joe’s carries a minimal assortment, we developed a smaller 14-item basket for this comparison. Although more pricey than Wal-Mart, and slightly more than the other local supercenter concept, Fred Meyer, Trader Joe’s did manage to out-price Albertson’s, Haggen’s and Safeway, thus proving that these chains are quick to surrender when it comes to allowing other concepts to claim the low price leader title.
Wal-Mart Supercenter vs Trader Joe’s and 4 Other Chains
Prices Available to the General Public
| STORE NAME | WALMART | TRADER JOE’S | ALBERTSONS | FRED MEYER | |||
|---|---|---|---|---|---|---|---|
| Produce Item | Price | Regular Price |
% Over Wal-Mart |
Regular Price |
% Over Wal-Mart |
Regular Price |
% Over Wal-Mart |
| Bananas – Yellow | $0.48 | $0.19 | -60.42% | $0.79 | 64.58% | $0.69 | 43.75% |
| Cantaloupe – Whole – Bulk | $0.68 | $0.49 | -27.94% | $0.99 | 45.59% | $0.89 | 30.88% |
| Dressing | $2.68 | $2.99 | 11.57% | $3.59 | 33.96% | $2.49 | -7.09% |
| Garlic – Each | $0.31 | $0.64 | 106.45% | $0.50 | 61.29% | $0.34 | 9.68% |
| Grapefruit – Red – Each | $0.47 | $0.69 | 46.81% | $0.69 | 46.81% | $0.50 | 6.38% |
| Grapes – Red Seedless | $2.37 | $2.39 | 0.84% | $2.99 | 26.16% | $2.99 | 26.16% |
| Green Onions | $0.47 | $1.09 | 131.91% | $0.79 | 68.095 | $0.59 | 25.53% |
| Honeydew – Whole – Bulk | $0.59 | $0.49 | -16.95% | $0.99 | 67.80% | $0.89 | 50.85% |
| Mushrooms – White Package | $2.68 | $2.89 | 7.84% | $1.99 | -25.75% | $1.99 | -25.75% |
| Onions – Red | $0.88 | $0.99 | 12.50% | $0.99 | 12.50% | $0.89 | 1.14% |
| Peppers – Red – Each | $1.50 | $1.79 | 19.33% | $1.29 | -14.00% | $1.99 | 32.67% |
| Tomatoes – Plum/Roma | $1.34 | $2.29 | 70.90% | $1.99 | 48.51% | $1.99 | 48.51% |
| Yams – Bulk | $0.88 | $0.89 | 1.14% | $1.29 | 46.59% | $0.99 | 12.50% |
| MARKET BASKET | $15.33 | $17.82 | 16.24% | $18.88 | 23.16% | $17.23 | 12.39% |
| STORE NAME | WALMART | HAGGEN’S | SAFEWAY | ||
|---|---|---|---|---|---|
| Produce Item | Price | Regular Price |
% Over Wal-Mart |
Regular Price |
% Over Wal-Mart |
| Bananas – Yellow | $0.48 | $0.69 | 43.75% | $0.79 | 64.58% |
| Cantaloupe – Whole – Bulk | $0.68 | $0.99 | 45.59% | $0.99 | 45.59% |
| Dressing | $2.68 | $2.99 | 11.57% | $3.99 | 48.88% |
| Garlic – Each | $0.31 | $0.50 | 61.29% | $0.50 | 61.29% |
| Grapefruit – Red – Each | $0.47 | $0.69 | 46.81% | $0.79 | 68.09% |
| Grapes – Red Seedless | $2.37 | $3.49 | 47.26% | $2.99 | 26.16% |
| Green Onions | $0.47 | $0.69 | 46.81% | $0.49 | 4.26% |
| Honeydew – Whole – Bulk | $0.59 | $0.79 | 33.90% | $0.99 | 67.80% |
| Mushrooms – White Package | $2.68 | $2.99 | 11.57% | $1.99 | -25.75% |
| Onions – Red | $0.88 | $0.99 | 12.50% | $0.99 | 12.50% |
| Peppers – Red – Each | $1.50 | $1.99 | 32.67% | $1.69 | 12.67% |
| Tomatoes – Plum/Roma | $1.34 | $1.79 | 33.58% | $1.99 | 48.51% |
| Yams – Bulk | $0.88 | $0.99 | 12.50% | $1.29 | 46.59% |
| MARKET BASKET | $15.33 | $19.58 | 27.72% | $19.48 | 27.07% |