Grocery stores have been on an upward foot traffic trajectory as of late, and Trader Joe’s – with its cult-like following – is often near the top of the pack.
We dove into the location analytics for the chain, exploring its nationwide performance and visitor trends in its home state of California, to uncover what’s behind the grocer’s ongoing success.
Expanding Value
Despite positive signs that food-at-home inflation is stabilizing, many consumers are still feeling the pinch of high grocery costs. And with the help of its wide range of premium-quality, private-label products, Trader Joe’s offers an upscale experience at prices that are attractive to value-conscious grocery shoppers.
Perhaps bolstered in part by several new locations, Trader Joe’s year-over-year (YoY) visit growth has outperformed the wider grocery category every month of 2024 so far. And the chain appears to be doubling down on its expansion strategy, with two dozen new stores planned through the end of 2024.
By continuing to meet consumer demand for value and quality, and through the ongoing expansion of its fleet, Trader Joe’s is likely to sustain foot traffic growth in the near future.
TJ’s in California
In addition to competitive pricing and a growing real estate footprint, examining visitor dynamics in California – Trader Joe’s largest market by far – suggests that the chain may be driving success by becoming more shoppers’ principal grocery destination.
Between January and August 2024, California Trader Joe’s experienced YoY visit growth ranging from 3.2% to 11.1% – while YoY foot traffic to the wider grocery segment ranged from -2.7% to 4.6%. And over the same period, the share of Trader Joe’s visitors that also frequented other leading California grocery chains decreased significantly – indicating that TJ’s is making inroads with some of its toughest competition in the state.
Between January and August 2023, for example, 50.1% of visitors to a California Trader Joe’s also visited Ralphs – a share that dropped to 47.1% during the equivalent period of 2024. Similar patterns could be observed for VONS, Sprouts Farmers Market, and even California’s grocery visit leader, Safeway.
This suggests that a growing percentage of Trader Joe’s shoppers may be relying on the chain for more of their essentials – rather than visiting TJ’s in addition to a traditional grocery store.
A Surplus of Singles
Diving deeper into the demographic characteristics of visitors to California Trader Joe’s provides further insight into the consumers driving the chain’s statewide YoY visit gains. Analyzing California TJ’s trade areas with data from STI: PopStats reveals that Trader Joe’s drives an outsized share of visits from singles – living on their own or with roommates.
Between January and August 2024, 26.5% of residents in Trader Joe’s California captured market lived in one-person households – compared to a statewide average of 22.9%. Meanwhile, 10.0% of the trade area residents were from non-family households – well above the state average of 8.0%.
This could be partially due to Trader Joe’s ongoing investment in college town locations, as well as its fail-safe frozen food selection – a winner with novice cooks pressed for time or space for meal-prep. Plus, Trader Joe’s boasts cheerfully-themed, seasonal products that change every few months, which may be particularly likely to resonate with college students that follow seasonal rhythms of their own.
Wrapping it Up
Trader Joe’s continues to shine in the grocery space in part due to ongoing consumer demand for value and the chain’s expansion. And in California, a loyal and disproportionately single audience is a significant driver of foot traffic.
For updates and more grocery foot traffic insights, visit Placer.ai.
This blog includes data from Placer.ai Data Version 2.1, which introduces a new dynamic model that stabilizes daily fluctuations in the panel, improving accuracy and alignment with external ground truth sources.
