Trader Joe's breaks every rule of modern retail. They don't do e-commerce. They don't do delivery. No sales, coupons, or loyalty programs. They only stock 4,000 SKUs versus 50,000+ at normal supermarkets. Their parking lots are famously terrible and they're constantly out of your favorite items. Shoppers brave long lines and cramped aisles while overly-friendly employees in Hawaiian shirts try to chat them up. Everything about the Trader Joe's experience seems designed to drive modern consumers away. And yet they generate $2,000+ per square foot in sales — double their nearest competitor in Whole Foods and nearly 4x the industry average — and Americans are obsessed with them. How on earth did a company that so steadfastly refuses to participate in the 21st century build the most beloved grocery chain in America?Today we tell the full story: how “Trader” Joe Coulombe started out cloning 7-Elevens in 1960s Los Angeles, pivoted to slinging hard liquor, discovered the enormous market opportunities for California wine and health food before anyone else, and ultimately built perhaps the most counter-positioned business we’ve ever studied on Acquired by doing almost everything differently than the supermarket-CPG industrial complex. Tune in for a wild voyage on the high seas of grocery retail!Sponsors:Many thanks to our fantastic Fall ‘25 Season partners:J.P. Morgan PaymentsSentryWorkOSShopifyLinks:Sign up for email updates and vote on future episodes!Worldly Partners’ Multi-Decade Trader Joe’s StudyBecoming Trader JoeThe Secret Life of GroceriesBuild a Brand Like Trader Joe'sAll episode sourcesCarve Outs:AirPods Pro 3Mario Kart 8More Acquired:Get email updates and vote on future episodes!Join the SlackSubscribe to ACQ2Check out the latest swag in the ACQ Merch Store!Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
Full Episode
I decided today needed to be an all Trader Joe's day. Actually, I got to show you.
Check out my haul. Oh, tote bag. You are styling. Take that to Europe. I've got... Some two-buck chuck. Nice.
Got so many nuts. So many nuts. Some chocolate, some cheese. A little picnic we're going to have here in the recording studio. All right, here I am popping this bottle of Charles Shaw, and we are ready to go.
All right. That might be the nicest wine opener that has ever been used. Two-buck chuck.
All right, let's do it.
Who got the truth? Is it you? Is it you? Is it you? Who got the truth now? Is it you? Is it you? Is it you? Sit it down. Say it straight. Another story on the way. Who got
Welcome to the fall 2025 season of Acquired, the podcast about great companies and the stories and playbooks behind them. I'm Ben Gilbert. I'm David Rosenthal. And we are your hosts. Peanut butter filled pretzel nuggets. Some hold the cone mini ice cream cones. plantain chips, and mandarin orange chicken. These are a few of the items I picked up this week on my trip to Trader Joe's.
You know, David had to do a research trip. It was mandatory. Had to do the research trip. I don't think I've ever spent more money at Trader Joe's because I just said yes to everything. It felt like I needed to have it all. But you couldn't have spent that much money. That's part of the point. Listeners, America seems to have an obsession with this grocery store, Trader Joe's.
It's a strange mashup of a health food store that carries interesting and quirky products inspired by traveling the South Seas, but for value-conscious shoppers. And they break every rule in grocery retailing. It's not that convenient. They don't stock all the things you need to buy each week. You can't buy online.
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