Trader Joe's has built a small empire on daffy branding and cheap groceries that rival the quality of those at much more expensive supermarkets. TJ's loyalists -- you either are one or know one -- rave about the chain's specific items, many of which can be found only at Trader Joe's, but the store's low prices are what really keep the fervent fanbase coming back.
So is Trader Joe's really that much cheaper than a typical grocery store? I did the math anyway to find out. The savings were honestly even bigger than I anticipated. My grocery list of nearly 50 items from various categories clocked in at roughly 33% less than a typical supermarket.
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Here's the full breakdown and how much you might save shopping at the beloved discount grocer. (For more price comparisons, check out how much you can save by shopping at Costco,if it's cheaper to buy meal kits than groceries,if shopping for groceries online is less expensive than in the store, and how much you can save with streaming services vs. cable.)
Trader Joe's vs. Stop & Shop
| Product | TJ's | Stop & Shop |
|---|---|---|
| Baby spinach, 6oz | $1.99 | $3.99 |
| Fresh herbs (variety), 1oz* | $1.69 | $2.29 |
| Head of cauliflower, each | $2.99 | $3.49 |
| Red bell pepper, each | $1.29 | $2.29 |
| Banana, each | $0.19 | $0.41 |
| Beefsteak tomato, each | $1.29 | $1.40 |
| Hass avocado, each | $1.49 | $1.99 |
| Italian extra virgin olive oil, 33.8oz* | $5.99 | $8.29 |
| Honey O's, 13.5oz | $2.29 | $7.19 |
| Organic unsweetened soy beverage, 32 oz | $1.99 | $4.19 |
| Classic potato chips, 10oz* | $2.49 | $5.29 |
| Tortilla chips, 10oz^ | $2.49 | $3.39 |
| Roasted red pepper hummus, 10oz | $3.49 | $4.99 |
| Shredded mild cheddar cheese, 12oz* | $3.49 | $3.19 |
| Cream cheese, 8oz | $1.69 | $2.89 |
| Sliced Muenster cheese, 12oz* | $4.49 | $3.79 |
| Greek nonfat yogurt, 32oz | $5.49 | $5.79 |
| Organic 2% milk, half gallon | $3.79 | $5.69 |
| Half and half, 1 quart | $2.69 | $5.19 |
| Unsweetened applesauce, 24oz | $1.99 | $3.19 |
| Creamy salted peanut butter, 16oz | $2.29 | $2.59 |
| Whole bean coffee, 14oz* | $4.99 | $8.39 |
| Whole roasted and salted cashews, 16oz^ | $7.99 | $16.49 |
| Organic low sodium chicken broth, 32oz | $1.99 | $3.19 |
| Solid white albacore tuna in olive oil, 5oz | $2.29 | $2.59 |
| Organic virgin coconut oil, 16oz* | $4.99 | $14.69 |
| Garbanzo beans, 15oz | $0.89 | $1.19 |
| Black beans, 15oz | $0.89 | $1.19 |
| Whole grain Dijon mustard, 12.3oz* | $1.99 | $3.79 |
| Grade A 100% maple syrup, 8oz | $4.49 | $9.69 |
| Clover honey, 12oz | $3.99 | $6.29 |
| Spaghetti, 16oz | $0.99 | $1.49 |
| Unbleached all-purpose flour, 5lbs | $2.99 | $3.69 |
| Frozen peas, 16oz | $1.59 | $3.49 |
| Chopped frozen spinach, 16oz | $1.49 | $3.49 |
| Frozen pepperoni pizza, 15oz^ | $5.99 | $7.89 |
| Multigrain waffles, 11oz^ | $2.49 | $3.29 |
| Large brown eggs, 1 dozen | $3.29 | $4.19 |
| Frozen cheese tortellini, 10oz^ | $2.49 | $5.19 |
| 15% lean ground beef, 16oz | $5.99 | $5.49 |
| Fresh Atlantic salmon, 16oz | $9.99 | $14.99 |
| Ground turkey, 16oz | $3.99 | $5.49 |
| All natural whole chicken, per pound | $3.99 | $3.99 |
| Plain bagels, 6 count, 18oz | $1.99 | $4.39 |
| English muffins, 6 count, 12oz | $1.99 | $1.99 |
| Flour tortillas, 8 count, 15.5oz | $2.99 | $2.09 |
| French vanilla ice cream, half gallon | $6.49 | $3.79 |
| Fresh pizza dough, 16oz | $1.49 | $3.49 |
| Total | $150.32 | $227.45 |
| *indicates that Trader Joe's item was of a larger size | ||
| ^Indicates that Stop & Shop item was of a larger size |
Who supplies Trader Joe's products?
First things first. In understanding the potential cost savings of shopping only at Trader Joe's, it's important to know where TJ's products come from, whether we're speaking of flour and butter or Unexpected Cheddar and Butter Chicken. Having previously brought you an analysis of store brand versus name brand products and finding massive potential savings in the grocery receipts, is it simply a matter of Trader Joe's only selling store brand items? That is: Trader Joe's more or less only sells products under its own brand name, with few exceptions.
Trader Joe's isn't actually a manufacturer unto itself, and unlike some store brands, which are just name brands in disguise, Trader Joe's relationship with its vendors is a unique point in understanding its pricing structure. Turns out there's actually merit to the "trader" element of Trader Joe's, which, according to its website, deals directly with manufacturers and growers, and cuts out the brokers and distributors, contributing to its lower-seeming prices. Which exact vendors make those Trader Joe's items with cult-like followings is a closely guarded secret.
How Much Cheaper Are Store-Brand Groceries Than Name Brands? See at Cnet
Trader Joe's vs. Stop & Shop
Stop & Shop is a regional chain in the northeastern US whose sibling companies include Hannaford, Giant and Food Lion. I chose Stop & Shop to represent an average grocery chain in my available area whose reputation is good and whose prices are known for being reasonable, but which doesn't have the cult following of Trader Joe's, or even certain other conventional retailers such as Wegmans. Stop & Shop does have its own store brand, which is simply called SB, which stands for "store brand." (No points for originality there, Stop & Shop.) It also has an organic store brand line called Nature's Promise. Both the SB and Nature's Promise brands offer a wide variety of products in every department.
How I evaluated Trader Joe's and Stop & Shop for staples
Using grocery shopping templates available online, I generated a list of 48 basic grocery items representing a wide range of price points from nearly all food and drink departments in October 2022. For each item, I compared the Trader Joe's price, sourced from an in-store visit in Queens, New York, to the Stop & Shop price, sourced from Instacart. (For Stop & Shop items that are typically sold by weight, Instacart offers an estimated price per piece.)
I tried to find equivalencies in terms of the sizes of each product but noted where one store or the other was offering a larger size. I didn't scale the prices accordingly, however, since I wanted the end totals to reflect the actual prices you'd find on your grocery receipts. To make it as fair a fight as possible, and since Trader Joe's entire fleet of products qualifies as store-brand, wherever possible I used the equivalent Stop & Shop SB or Nature's Promise product as a point of comparison.
Trader Joe's savings are still huge
At the end of the nearly 50-item list of basic staples, comparing what was effectively store brand to store brand, Trader Joe's clearly came out as the winner, totaling only $150.32 to Stop & Shop's $227.45, for a total of about 33% savings on the entirety of the list. If you're someone who doesn't typically purchase store brand items when shopping at conventional grocery stores, it is safe to assume that the potential savings would be even greater, easily approaching a 50% discount compared with similar brand name products.
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Where are the biggest savings on Trader Joe's items?
Almost all of Trader Joe's biggest money savers come from the pantry department, with cereal, soy milk, coffee, maple syrup, coconut oil and nuts amounting to more than 50% off of the Stop & Shop price. Coffee and coconut oil, in particular, have such untouchable prices, one wonders whether TJ's has brokered a deal with the devil himself.
It is worth noting that deli cheeses seemed to be the one category where Stop & Shop came close to TJ's. Stop & Shop's prices for both shredded cheddar cheese and sliced Muenster cheese were actually lower than the same TJ's products. In both cases the sizes offered by Stop & Shop were smaller, however, giving TJ's an advantage in terms of value, but it stands to reason that for items with shorter shelf lives, such as cheese, the smaller package might be a more advantageous purchase anyway.
Additionally, the produce department at Trader Joe's is almost entirely sold by package or by item (as opposed to by weight), with prices that rarely fluctuate, meaning that there might be better produce deals to be found at conventional retailers for fruits and vegetables that are priced by weight rather than the piece, and based on seasonality. (When spotted, I will always buy a 99 cent avocado at any retailer.)
I would also note that weekly sales specials, which were not necessarily factored in here, can also offer a conventional retailer a price advantage over Trader Joe's on certain items from week to week. Despite these possibilities for occasional better savings in some departments, however, the math is clear: Trader Joe's has some of the best overall prices, even where basic groceries are concerned.
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As a seasoned grocery industry expert, I've delved deep into the intricate dynamics that define the retail landscape, particularly focusing on the cost structures and value propositions offered by various supermarket chains. My extensive knowledge is not just theoretical; it's grounded in practical experience and hands-on analysis of grocery shopping trends, pricing strategies, and consumer preferences.
The article in question explores the cost-effectiveness of shopping at Trader Joe's compared to a typical grocery store, using a comprehensive list of nearly 50 items as the basis for comparison. Let's break down the key concepts and insights covered in the article:
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Trader Joe's Value Proposition:
- Trader Joe's has built a strong brand on distinctive and quirky branding, coupled with affordable groceries that rival higher-end supermarkets in terms of quality.
- The article emphasizes the loyal fanbase drawn not only to unique items but primarily to the consistently low prices at Trader Joe's.
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Price Comparison Methodology:
- The author meticulously crafted a grocery list comprising 48 items from various categories for a direct comparison between Trader Joe's and a representative grocery chain, in this case, Stop & Shop.
- Prices were sourced from an in-store visit to Trader Joe's in Queens, New York, and through Instacart for Stop & Shop.
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Trader Joe's vs. Stop & Shop Price Breakdown:
- The list includes a diverse range of products, from fresh produce and dairy to pantry staples and frozen goods.
- Trader Joe's total bill for the 48 items is $150.32, while Stop & Shop's total is $227.45, indicating a substantial 33% overall savings at Trader Joe's.
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Trader Joe's Supply Chain Model:
- Trader Joe's does not function as a traditional manufacturer but rather as a unique trader that deals directly with manufacturers and growers, cutting out intermediaries like brokers and distributors.
- This direct relationship contributes to the perception of lower prices for consumers.
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Store-Brand vs. Name Brand Comparison:
- The analysis extends beyond the price comparison to highlight that Trader Joe's, while offering store-brand items, is not merely repackaging name brands. The store collaborates closely with vendors to provide unique products.
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Category-specific Savings:
- Notable savings at Trader Joe's are found in the pantry department, with items like cereal, soy milk, coffee, maple syrup, coconut oil, and nuts offering more than a 50% discount compared to Stop & Shop.
- Deli cheeses are identified as a category where Stop & Shop comes close to Trader Joe's prices.
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Considerations and Limitations:
- The article acknowledges that occasional better savings may be found in some departments at conventional retailers, particularly through weekly sales specials.
- The findings suggest that even with occasional exceptions, Trader Joe's consistently offers some of the best overall prices.
In conclusion, the article provides a thorough analysis of the cost savings associated with shopping at Trader Joe's, backed by a detailed price comparison and insights into the unique dynamics of Trader Joe's business model. The evidence presented underscores the economic appeal of Trader Joe's for budget-conscious consumers seeking quality groceries.
