Trader Joe's Controversy: Trader Joe's in St. Paul and Minneapolis
Trader Joe's occupies it's own niche in the world of grocers. There's a focus on specialty and unusual items packaged and priced to make them attractive and accessible to as many consumers as possible. And Trader Joe's most famous line, $2.99 Charles Shaw wines, Three Buck Chuck, brings folk to the store just by itself. Trader Joe's sells liquor in the same building as groceries by having a separate entrance and checkout for the liquor department.
Not everyone is pleased to see Trader Joe's arrive in St. Paul's Highland Park. Nearby independent grocery store Korte's Market gathered signatures to oppose the store while the development was being planned, and is now waiting to see what the effect on their business is before they take any action to deal with the competition.
Traffic, a problem plaguing the St. Louis Park location in particular, has been a concern with the latest Trader Joe's, which has an even larger catchment area of shoppers. Most people from Minneapolis, St. Paul or the south metro area who wants to visit Trader Joe's will be coming to the St. Paul location. So far the traffic has been hectic but manageable at peak shopping times.
Union representatives have been picketing the new store this week, carrying signs urging shoppers to boycott Trader Joe's for not employing union workers. Trader Joe's average wages are higher than the average union employee, and the company benefits and retirement plans are available to employees working over 20 hours a week. And it seems that the staff are happier, when the checkout clerks hand me my receipt with the standard "Have a nice day!" they seem to be a little more sincere at Trader Joe's than other chain grocery stores.
Trader Joe's isn't content with four Twin Cities stores. A store is rumored to be planned for Hopkins, and another store on Lyndale Avenue in Minneapolis is definitely in the planning stage but faces opposition from a store one block north - the Wedge Coop. Trader Joes and the Wedge have a lot of overlap in their target markets and while Trader Joe's doesn't sell co-op staples like bulk produce and carries very few local Minnesota foods, Trader Joe's purchasing power will undercut the Wedge for many natural and organic foods and as a result, the Wedge's business is likely to suffer.
The Wedge is objecting specifically to Trader Joe's application for a liquor license. Liquor is such a significant part of Trader Joe's business that they won't build the store unless they can sell beer and wine in it. Minneapolis has legislation mandating business who hold liquor licenses to be at least 2000 feet apart. Hum's Liquor, across the street from the Wedge, would usually prevent either the Wedge or the proposed Trader Joe's having a liquor license too, but Trader Joe's has applied for an exemption and received the support of Minneapolis City Council in April. If the state and local residents agree, then Trader Joe's will be permitted to sell Three Buck Chuck on the site and the store will likely be built.
It's only been three years since the first Trader Joe's opened in Minnesota, and it is certainly taking the Twin Cities by storm. But are their organic goods for the massses and cheap wine a welcome addition, or unfair competition to independent markets and co-ops?
Comments
I have visited Trader Joes, and I don’t care for it. It’s always crowded, loud and difficult to find things. I don’t think the wedge has a lot to worry about. They may see a slight drop in sales, but I think they could coexist as their overlap is minimal. I think in the long run Trader Joe’s is more likely to suffer from building too close to the Wedge.
TJ’s has portion size products that are consumer friendly! What will happen is consumers will flock to TJ’s. Grocery stores are now turning into food asembley plants were consumers go in and pick from a variety of ready to eat or ready to heat food components to take home and place on the table. In other words they are becoming Grocerants. Most consumers do not cook them simply assemble meal s particularly Monday – Friday.
Trader Joes is Aldi for a wealthier demographic. It’s owned by the Albrecht brothers of Germany. Think Walden family of Walmart. Target, Wallmart, Aldi, Trader Joes are all broadly influencing the grocery supply chain. They bring international buying power and have the ability to crush small, medium, and even large competitors. Increasing organic content in these stores is not indicative of any particular environmental or ethical position, it is completely market driven. This favors large scale industrial organic production, meaning big business located in distant places. Therefore it weakens the local foods movement by deflating prices. We need to support local growers, so the strength of our knowledge base remains high, our soil rich, and our economy to our community. CSA, Co-op, backyard and community gardening are the future, but all being pressured by the globalized, pre packaged/processed “convenience” of retailers like Trader Joe’s.
TJ’s is an amazing store option. I have lived away from the Twin cities for almost seven years and will be moving back later this year. I am completely STOKED that there is a Highland Park location of TJ’s. I think it is a great option to have in addition to my other shopping. It’s great to have variety and will help other stores improve, if they choose to see Tj’s not as competition, rather, just another store that is doing things right. We love three buck chuck!
Just a lot of food-like-products. If you are looking for cheap junk food, TJs is your place. If you care about your health and are looking for actual food, visit your local co-op, or better yet, a farmer.