The Unique Supermarket That's Been In Growth Mode Since 1967

Trader Joe's feels like your neighborhood market, but its history and reach may surprise you. The first Trader Joe's opened in California in 1967, when Joe Coloumbe noticed a gap in the local marketplace. The community had plenty of convenience stores and large corporate grocery chains, but lacked charming, affordable markets. Trader Joe's was designed to fit this bill and appeal to consumers with refined tastes but small pockets, aka the "unemployed PhD student." Coloumbe's business savvy was spot on, and the unique chain has been in growth mode ever since.

Growth mode means the company isn't just trying to sustain its current business. It's always looked to the future, successfully growing since the beginning. The chain started with personal branding in 1972, and pretty soon, 80% of Trader Joe's products were its in-store brand. In the following decades, Coloumbe opened almost 30 stores in California, and in the early '90s, Trader Joe's expanded to Arizona, followed by the East Coast. By the early 2000s, it hit the Midwest and South, seeing success in all regions and becoming a truly nationwide name.

Trader Joe's hasn't just multiplied its locations, but also its revenue. It exploded from $132 million in annual sales in the '90s to $2 billion in 2001. Today, Trader Joe's has over 600 locations nationwide and makes over $16 billion in annual sales. Trader Joe's plans to open 41 new stores in 2025 alone, which should increase these numbers. The chain shows no signs of stopping this unprecedented growth, and what keeps it so successful is its unique business model.

Since 1967, Trader Joe's has maintained its neighborly vibe and puts the consumer first. Instead of a generic grocery store aesthetic, it delivers a friendly, nautical theme. And while other chains are outsourcing to virtual checkout kiosks, TJ's stays true to its personable roots. Here, you'll only find human cashiers decked out in Hawaiian shirts.

Trader Joe's pricing model also sets it apart. It doesn't charge suppliers a stocking fee, and there are no loyalty programs, membership cards, or discounts. Every customer has access to the same low prices. But the real reason Trader Joe's is so cheap is that it buys large volumes of inventory early and directly from suppliers.

Trader Joe's stocks its shelves in a unique way, putting a great deal of thought into each product it selects, and prioritizes shelf space for top-selling items. You won't see big-name brands. Most products are either from smaller companies or the in-store brand. The chain also focuses on staples, along with affordable international foods and gourmet snacks. Thanks to these strategies, TJs has a cult-like following, and people rave about its funky yet delicious products. To discover them for yourself, check out our ranking of Trader Joe's best and worst snacks, which includes everything from plantain chips to peanut butter cups.