According to an analyst, Trader Joe’s may be widening its price advantage with Whole Foods. Karen Short of Deutsche Bank Securities said in a report recently that a Trader Joe’s in the New York market had a total price advantage of 26% over a neighboring Whole Foods Market across a basket of 77 like items. In fact, Trader Joe’s prices were cheaper on 60 of the 77 items checked.
Overall, Trader Joe’s prices were 30% cheaper on perishables and 24% cheaper on non-perishables. In addition, Trader Joe’s had a 15% advantage in overall prices versus Whole Foods’ private label items.
Short said the widening price gap may be the result of a round of price investments by Trader Joe’s, which recently reached the 500 store mark. The company made a similar round of price investments in 2013, when they reached the 300 store mark. That event in 2013 garnered a response by Whole Foods, which lowered prices to remain competitive with its rival.
