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Trader Joe's has ample charm. The multicolored aisles, the bubble letters, the fun packaging designs, the employees' Hawaiian-shirt uniforms, the wooden paneling on the walls, the nautical decorations. It's a fun store to buy your groceries from. And it could save you money to shop there, especially if you like "fancy" snack foods, like dark chocolate French butter cookies and apricot cardamom spread.
Even though I count myself among the loyal Trader Joe's shoppers, I know this grocery store is not for everyone. It might help your budget to shop there for certain products, but it could just as well lead you to overspend on snacks and foods you'll try once and never eat again. Although I find value at TJ's, the following are the most common reasons I've heard for why you might want to avoid it.
1. No loyalty program
Unlike other grocery stores, Trader Joe's doesn't have a rewards program. You won't earn rewards points for buying products on certain days. Nor will you get exclusive discounts sent to your email address for being a loyalty member.
An example of this would be the Kroger membership program. This free loyalty program gains you access to coupons and offers, plus earns you 1 Fuel Point for every $1 spent. According to Kroger, members save on average $1,000 annually by maximizing their membership.
One argument in favor of Trader Joe's might be that TJ's already has low prices and therefore doesn't need a loyalty program to offer you savings. But for those trying to double dip on rewards -- earning them on a cash back credit cardand from a loyalty program -- TJ's isn't taking part.
2. No coupons
Trader Joe's doesn't offer coupons. As it says on its website:
"We know that maintaining our everyday focus on value is vital, which is why we don't have sales, we don't offer coupons, and there are no loyalty programs or membership cards to swipe at our stores. Trader Joe's believes every customer should have access to the best prices on the best products every day."
To be fair, most coupons at grocery stores are for brand-name items only. Since these products are typically more expensive than generic brands, the coupon doesn't always save you the most money. I wouldn't mind a Trader Joe's coupon booklet, but since it already has low prices, I'm satisfied with that, too.
3. It doesn't always have the lowest price
For hard-to-find foods, wine, and frozen dinners, Trader Joe's prices are hard to beat. For everything else, however, you might find a better deal at another store.
For example, buying essentials in bulk at Costco will save you more money over the long run. This includes eggs, milk, paper towels, and other goods that you use on a daily basis. For perspective, here's how the two compare on prices for popular grocery items:
| Product | Trader Joe's price | Costco price |
|---|---|---|
| Eggs | $4.99 for a dozen | $9.71 for two dozen |
| Milk | $5.49 for a half gallon | $4.48 for a gallon |
| White sliced bread | $1.99 for a loaf | $5.94 for two loaves |
| Toilet paper | $3.99 for six rolls | $24.30 for 30 rolls |
Ultimately, I'm in favor of saving money. If the fancy foods are causing you to spend more than you should, sorry Joe -- it might be time to cut back.
But if shopping at TJ's means charging less to your favorite grocery credit card, then who cares about loyalty programs and coupons? You're saving money on the things you actually need -- even if that list of necessities includes ranch-seasoned cashews and mozzarella cheese snackers.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
