This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Should Whole Foods Buy Trader Joe's?

There's no excuse for this shocking reality: Safeway (SWY - Get Report) has a pretty solid shopping app -- one you carry with you and use throughout the store -- Whole Foods does not.

Whole Foods Should Buy Trader Joe's

If you live in a place without a Whole Foods or Trader Joe's, you want one, the other or both. If you live in a place that has both you probably shop at both. I go in waves, but, ultimately, I split time almost evenly between the two stores.

Trader Joe's has more than 350 stores. Highly concentrated in California, but scattered across the nation and still growing fast. Trader Joe's continues to saturate new markets. For instance, my parents, who live in Western New York, will have one nearby when the chain opens in Amherst, a suburb of Buffalo.

Whole Foods needs to do like Starbucks and take Trader Joe's out.

On the surface, it looks like overkill, but not if Whole Foods handles it strategically.

Trader Joe's stores tend to be much smaller than Whole Foods Markets. In the last couple of years, as Whole Foods has focused more on its "generic" Everyday 365 line, the two have converged on price. While Whole Foods still sells items at a considerable premium to Trader Joe's, it's no longer Whole Paycheck. You can still drop absurd amounts of money on cheese and salami, but you have more choices than ever before a various price points.

If I'm Whole Foods, I turn a handful of Trader Joe's stores into one-stop-shops for Everyday 365 products and Trader Joe's-branded items. Make it the Whole Foods Market corner store concept with a small produce section and an expanded beer section.

Morph another handful of Trader Joe's into full-fledged Whole Foods stores. And maybe experiment with a concept or two at a couple others.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.09 0.49%
AMZN $385.66 1.45%
SBUX $94.22 0.79%
SWY $35.10 -0.11%
WFM $56.22 -0.48%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs