Trader Joe’s is in growth mode, opening 34 new stores last year

The trend: Trader Joe’s is in expansion mode, per Grocery Dive.

• The grocer opened 34 new stores last year, roughly three times the number it debuted in 2023 and more than five times what it opened in 2022.
• The chain isn’t done either: It already has plans to open at least 12 more stores this year.

The new locations are primarily aimed at strengthening the grocer’s presence in existing markets rather than venturing into new markets.

Seize the moment: Just like Aldi—the fastest-growing grocery chain in the US by new store openings for each of the past five years—Trader Joe’s wants to strike while the iron is hot as grocery shoppers prioritize value and embrace private label products, which make up about 80% of its inventory.

• Store brand sales rose 3.9% YoY to $271 billion in 2024, compared with just 1.0% growth for national brands, per a report from the Private Label Manufacturers Association based on Circana data.
• That growth stems from rising quality of private-label goods; 80% of shoppers say store brands are “just as good or better than” name brands, per an Ipsos survey.

Our take: Trader Joe’s understands that its strong value proposition and unique product mix make it a staple in many shoppers’ routines. But the biggest determinant of where consumers buy their groceries is their proximity to a store.

Opening more stores makes its locations more convenient to more consumers, helping the retailer capture more grocery spending.

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