What is Trader Joe’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Trader Joe’s because it is a private company. However, Walmart (NYSE: WMT), Costco (NASDAQ: COST), and Kroger (NYSE: KR) are grocery stocks that traders can invest in.
There are dozens of different grocery store chains across the US. Some, like Walmart, Kroger, Costco, and Sprouts, are public companies, meaning you can buy their stocks. Others, such as Trader Joe’s, are private companies. You can still shop there but can’t own a part of the company. Trader Joe’s stores are usually much smaller than those of its competition. Many of them feature hand-painted murals depicting local landmarks.
Its stores offer a variety of popular and unique private-label products selected to regional tastes and preferences. Below, we will learn more about Trader Joe’s and its many competitors trading on the US stock market.
Table of Contents
Trader Joe's Introduction (No Stock Symbol)
Trader Joe’s was founded in 1967 by Joe Coulombe in Pasadena, California. Initially, Trader Joe’s stocked a variety of groceries, discounted items, and an extensive alcohol collection.
In the early 1970s, as the health food movement gained momentum, Coulombe pivoted the store’s offerings to include products appealing to health-conscious consumers, such as granola, fresh juice, vitamins, and imported cheeses.
To this day, they are some of the most popular foods sold at Trader Joe’s. Some of the store’s long-standing favorite brands and items are in its “Hall of Fame” category in the annual Customer Choice Awards.
In 1979, everything changed for Trader Joe’s. Joe Coulombe sold it to the Albrecht family (owners of Aldi). The company began expanding outside of California, notably in the East Coast. Its expansion strategy included new strategic locations near competitors (Whole Foods) and college towns.
Today, Trader Joe’s has 591 stores across the US. The company isn’t present in other countries and has no international expansion plans. Its stores are found in 44 US states and territories, with California leading the way (34% of all stores with 202). Can I trade Trader Joe’s stock?
Trader Joe’s Financials and Challenges
Since Trader Joe’s is a private company with no Trader Joe’s stock, it doesn’t publicly disclose detailed financial information and statements. According to some sources, it is profitable and generates over $13B in annual revenue. That number has been steadily growing year after year. The same goes for its profit and net income.
One of Trader Joe’s most significant disadvantages is its lack of e-commerce platform and delivery service. It could become problematic as consumer preferences shift towards online shopping in this highly competitive industry.
Trader Joe’s and Aldi
Let’s go back to Aldi for a moment. Aldi was founded in Germany by the Albrecht brothers. In 1960, they split the company into two separate entities due to a disagreement over selling cigarettes (Aldi North and Aldi South).
Aldi South entered the US market in 1976. It’s the Aldi chain most Americans are familiar with. On the other hand, Aldi North purchased Trader Joe’s in 1979 to establish itself in the US market.
Aldi’s profit margins and growth have increased considerably in the last decades. New stores are opening every year to expand the brand’s operations. The Albrecht family still privately owns Aldi and its subsidiaries, including Trader Joe’s. However, there is no Trader Joe’s stock.
Trader Joe’s IPO
Does Aldi or Trader Joe’s plan to go public? Unfortunately for investors, there are no indications or announcements about plans for an IPO for either brand. Therefore, there is no Trader Joe’s stock.
Both companies have been successful with their current business models and private ownership structures, so there seems to be little incentive for them to go public soon.
While it’s always possible that plans could change in the future, investors interested in the grocery sector can always look at Trader Joe’s and Aldi’s publicly traded competitors.
Trader Joe’s Stock Competitors
Trader Joe’s faces competition from various international (Walmart, Costco) and local/regional grocery chains. Some have different business models and appeal to customers, but the products they seek overlap. Here are some of Trader Joe’s stock competitors.
1. Walmart (NYSE: WMT)
We begin our list of Trader Joe’s stock competitors with Walmart. This multinational retailer is known for its large-scale operations and leverages its size to negotiate low prices with suppliers.
As a result, Walmart is highly competitive in price, attracting budget-conscious shoppers and larger families. On the other hand, Trader Joe’s focuses on unique, higher-quality products. It offers a smaller selection than Walmart.
While many go to Walmart for the cheapest products, those shopping at Trader Joe’s seek the best ones. Trader Joe’s fosters customer and brand loyalty.
1. Walmart (NYSE: WMT)
We begin our list of Trader Joe’s stock competitors with Walmart. This multinational retailer is known for its large-scale operations and leverages its size to negotiate low prices with suppliers.
As a result, Walmart is highly competitive in price, attracting budget-conscious shoppers and larger families. On the other hand, Trader Joe’s focuses on unique, higher-quality products. It offers a smaller selection than Walmart.
While many go to Walmart for the cheapest products, those shopping at Trader Joe’s seek the best ones. Trader Joe’s fosters customer and brand loyalty.
2. Costco (NASDAQ: COST)
Costco and Trader Joe’s are not direct competitors but compete in some aspects of the grocery retail market. First, Costco focuses on bulk buying in a warehouse environment, while Trader Joe’s prioritizes convenience with a more traditional grocery store format and unique product offerings.
Second, Costco appeals to customers who prefer bulk purchases and have storage space, and Trader Joe’s attracts customers looking for specialty items, unique products, and a quicker shopping experience. Some Costco warehouses can be 10 to 15 times the size of an average Trader Joe’s store. You can also find electronics, home appliances, and other items that are unavailable at Trader Joe’s.
Costco and Trader Joe’s are known for competitive pricing, but Costco achieves this through bulk sales, while Trader Joe’s focuses on private-label products. In some areas, they may compete for similar customers, especially those looking for quality products at good prices. However, Costco is a great alternative to Trader Joe’s stock.
3. Kroger (NYSE: KR)
Kroger operates supermarkets and hypermarkets, often exceeding 50,000 sqft, while the average size of Trader Joe’s is between 10,000-15,000 sqft. Its stores aren’t as big as Walmart and Costco, but they also attract a broad range of customers looking for one-stop shopping.
Like Costco and Walmart, Kroger offers cheaper products than Trader Joe’s, but their quality may be lower. As a result, it could be a great alternative to Trader Joe’s stock.
Trader Joe’s advantage in these big nationwide stores is the quality of its products and the value of their private label products. However, many consumers have complained about lower-quality products at Trader Joe’s stores in the last 1-2 years. It seems to have become recurrent nationwide since COVID-19 for many grocery stores.
4. Sprouts (NASDAQ: SFM)
We continue with Sprouts, which focuses on fresh, natural, and organic products with an emphasis on produce. Consider it a hybrid between a conventional supermarket and a natural foods store, making it a great Trader Joe’s stock alternative.
Typical Sprouts stores have a farmer’s farmer style layout but remain larger than a typical Trader Joe’s store. Sprouts is a much more recent chain that is growing nationwide quickly.
Sprouts and Trader Joe’s are competitive because they both offer natural and organic packaged goods and appeal to health-conscious consumers and those interested in natural and organic products, but at more accessible price points than some competitors. Both chains emphasize a unique shopping experience different from traditional supermarkets.
5. Publix
Publix is the only company on this list that isn’t public. It is one of the largest employee-owned grocery chains in the US. There isn’t any news of the company going public anytime soon, but you never know!
Publix offers a similar shopping experience to Kroger’s, offering a mix of national brands and private labels. It is known for its BOGO (Buy One, Get One free) deals and its traditional supermarket experience with various departments and services, including in-store pharmacies.
Like Trader Joe’s, Publix appeals to many customers, including families, budget-conscious shoppers, and those looking for convenience and variety in one location.
6. Amazon (NASDAQ: AMZN)
We conclude this Trader Joe’s stock competitors list with Amazon. Wait what? Yes, Amazon is primarily an e-commerce platform. However, it has a growing physical retail presence through Whole Foods Market and Amazon Fresh stores.
They offer a vast range of products (national and private label), including groceries, through their online platform and Whole Foods stores. It’s a big plus because Trader Joe’s doesn’t have an e-commerce or delivery presence.
Amazon is known to disrupt many industries; this is a perfect example. Both companies appeal to the same demographic and offer similar products. Trader Joe’s is lucky to have a loyal customer base, but its products must remain qualitative to remain competitive.
Final Thoughts: Trader Joe's Stock
To conclude, Trader Joe’s is one of the many grocery chains in the US. The brand has cultivated a strong following and customer loyalty thanks to its unique stores, decor, and private-label brands.
Despite all these positive aspects, after nearly 60 years in the business, it still hasn’t adopted an e-commerce platform or a delivery system. It can be a major disadvantage as consumers are shifting their shopping online. How long can Trader Joe’s compete against Amazon, Costco, Walmart, and other growing brands without innovating?
On the bright side, this doesn’t affect investors now because Trader Joe’s remains a private company, and there are no immediate plans to make it public. Therefore, there’s no Trader Joe’s stock to trade.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
No, Trader Joe’s is a private company. There aren’t any IPO plans.
Trader Joe’s was founded in 1967 by Joe Coulombe, but he sold it to the Albrecht family (owners of Aldi) in 1979.
Trader Joe’s stores have high customer satisfaction scores, and the brand focuses on the community and fresh and seasonal products.
Trader Joe’s is only available in the US (44 states and territories), has no e-commerce platform, and doesn’t do deliveries.
