Both Whole Foods and Trader Joe’s have been ramping up expansion in New England states, establishing a substantial foothold in the region thanks to the relatively strong economic strength of the communities. With further competition in organics, how do these two retailers compare in this growing region…and will Whole Foods recover?
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Whole Foods recently opened its 41st store in New England on May 14 with five more to come, while Trader Joe’s opened its 31st just two days later, according to Boston.com. Check out this state-by-state breakdown comparing the two retailers’ number of stores in each New England state and upcoming stores (in parentheses).
Trader Joe’s operates about 420 stores nationwide; about 7% of those are in New England. Whole Foods has about 380 locations, and about 11% of those are in the area.
So why is New England becoming more popular for these two retailers? Whole Foods North Atlantic Regional President Laura Derba tells Boston.com that both companies tend to target communities that have a strong “foodie culture,” something she says pervades much of New England. At the same time, they share a number of cross-over customers with each other, namely those looking for organic groceries. Grocery industry analyst David Livingston says, “They do kind of operate in harmony.”
Although both retailers might co-exist, there’s going to be some stiff competition ahead in organics. Reflecting on its most recent financial results, can Whole Foods continue to depend on merchandise alone?
“How quickly [Whole Foods adapts] and how accurately they meet the needs of their shoppers will be a great predictor of their success,” said Jeff Weidauer, Vice President of Marketing Strategy at Vestcom, a retail marketing company, according to International Business Times. “The competition will continue to come because the market itself is expanding. It’s going to be a lot harder to continue their growth, it’s going to take a lot more work because there’s going to be far too many players out there nipping at their heels.”
New England is only a small part of the United States, but it’s also indicative of the kind of competition that’s heating up for organic and natural grocers. I look forward to see how Whole Foods and Trader Joe’s will continue to evolve to maintain their position in this market.
