10 Surprising Things You Didn’t Know About Trader Joe’s
By: Andie Mitchell
Published: February 1, 2011

Last year, Trader Joe's reportedly earned $8 billion in sales, roughly equal to that of Whole Foods, a company much grander in size and scale. More remarkable than its earnings is the way TJ's, as it's lovingly referred to by patrons, is able to maintain its appeal as “your neighborhood grocery store” while growing into a super chain. Read on to find out 10 surprising Trader Joe's truths!

1. They're deliberately small.
Only 27 states and Washington, D.C. have one of the 344 Trader Joe's stores, and that's for good reason. With no store larger than 10,000 sq ft, each one maintains the look and feel of a cozy, authentic neighborhood market.  Fewer products in stores means the company is able to buy in bulk, ensure a very high product turnover rate, and lock in a significant discount from manufacturers.
2. Less options leads to more buying.
Their limited selection means that while they offer fewer varieties than a large grocery chain, the products are better and of higher quality overall. Trader Joe's may only carry 4 varieties of salsa while large grocery chains boast 40, but as one former employee explains, "If they're going to get behind only one jar of Greek olives, then they're sure as heck going to make sure it's the most fabulous jar of Greek olives they can find for the price." Customers trust that only great products are available, and the fewer number of options means less of the purchasing anxiety associated with too many choices.
3. You've probably purchased their products under bigger name labels.
A majority of the makers of Trader Joe's line of cheap items are successful national brands like Stacy's (a division of Frito Lay), Stonyfield Farm, and Tasty Bite. Neither Trader Joe's nor the suppliers want customers to know that the frozen lasagna that costs $4 under the big brand label is the same one being sold for just under $2 by “Trader Giotto's.” The Trader Joe's vendor agreement explicitly states, "Vendor shall not publicize its business relationship with TJ's in any manner."

4. They're German owned.
The Albrecht family purchased the company from founder Joe Coulombe  in 1979 and have kept quiet about their successful American chain ever since. It's said they only visit headquarters once a year, and word spreads among employees that “The Germans are coming.”
5. The original Joe.
The first Trader Joe's was opened in Pasadena, California in 1967 by Joe Coulombe.  His goal was to provide gourmet, exotic groceries at budget-friendly prices. Within a few years the company began carrying organic, healthy, and natural products at a fraction of competitors' costs. Even after selling the company to a German grocery tycoon, Coulombe remained active in retail. He currently sits on the board of directors for True Religion jeans.
6. They once sold Playboy magazines, pantyhose, and ammunition!
Before Joe Coulombe turned it into Trader Joe's, the original southern California location was one of a string of small convenience stores called Pronto Markets. The store was first stocked with everyday products and alcohol, eventually selling the greatest variety of California wine in the world. Two Buck Chuck, anyone?

7. New store locations are picked very carefully.
Trader Joe's likes to limit the number of people that handle their products (that secretive supplier relationship mentioned earlier), so new store locales are often chosen based on their vicinity to distribution centers. And to be sure consumers in a potential area are just the right fit for TJ's exotic meets yuppie products, the company uses surveys to gauge education level and even the number of people who subscribe to gourmet foodie magazines. Think your area has TJ's potential? The company accepts location suggestions here.
8. Employees are well paid.
With salaries for full-time workers in the $40,000-$60,000 range, and those of “captains,” or store managers, on the low end of six figures, it's no wonder these bell ringing, hawaiian shirt sporting, sample sharers are in good spirits. To sweeten the deal, 15.4% of employees' gross income is put into non-taxed retirement funds.
9. Products are in Europe!
While no store locations exist outside the United States, a few Trader Joe's branded products including crispbread, salmon, maple syrup, and iced tea, have made their way abroad. And as with all of their line of products, each item boasting their label is free of preservatives, trans fats, artificial additives, and MSG.
10. Patrons love it so dearly, they're even writing cookbooks to celebrate.
With hundreds of recipes made using only Trader Joe's products and titles like, “The I love Trader Joe's Cookbook” or “The I Love Trader Joe's Party Cookbook,” it's clear that the grocer has almost cult-like appeal.
-Article researched by Christine Arteta
Photos by Flickr user Show and Tell