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Whole Foods vs. Trader Joe's: Battle of the Brands

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

There exists, somewhere between the fearsome mass-ness of the mainstream grocery store and the high-pitched good works of the coop, farmer's market, or CSA, a world in which low prices are valued slightly higher than locality of the source but, more than anything, the products must be good. Fair-trade, organic, without trans-fatty acids, with fewer artificial colorings or preservatives or Disney characters than all the other products.

It's the world of the natural foods market. A world dominated by two very dissimilar and yet, from a target market perspective, nearly identical competitors: Whole Foods Market, Inc. (NASDAQ: WFMI) and Trader Joe's, a unit of German private company Aldi Group.

Walking into a store -- or simply gazing at one from across the street -- you have a very different picture. On one corner, in the midst of a posh shopping area or trendy boutique-spattered neighborhood, Whole Foods, with its glistening crates of fresh produce, honeydew melons, purple potatoes, and blood oranges piled high in an abundance of exoticism. The doors open smoothly, the merchandise is displayed beautifully, and a high-ceilinged eating area is often overflowing with customers enjoying their deli purchases. Customers enter slowly, looking around as if discovering a stunning architectural landmark for the first time.

On the other corner, we have Trader Joe's, typically located in a strip mall, aging shopping district, or quiet neighborhood. The single set of doors is crowded with seasonal flowers, but the produce section is dark and limited to shrink-wrapped zucchini and mushrooms, bags of salad greens, bananas, bananas, and more bananas. People wait grumpily for me to remove my shopping cart from the cart run -- it's more of a job, shopping at Trader Joe's. A job you like, but more responsibility than wonder.

Even though my cart fills with many of the same sorts of products when I'm shopping at one store or the other -- chocolate sandwich cookies, organic yogurt, healthy frozen "formaggi" pizza, cheese crackers, avocados and chicken sausage -- Whole Foods is lobster to Trader Joe's canned sardines, peonies to gerbera daisies, lavendar truffles to slabs of generic imported chocolate. Is preference for one over the other a matter of whether or not you're in the market for $100 bottles of champagne? Is it prices? Is it cachet?

I'd argue it's all these things, and more. The decision is, for me, an easy one: Trader Joe's is located a short four blocks from my house, and Whole Foods is across town. And as much as I understand the difference between Parmigiano Reggiano and Pecorino Romano, and how to tell if grouper steaks are the freshest, I don't feel extraordinarily comfortable at Whole Foods. I feel in the spotlight; that my grocery shopping is a performance, an appreciation of great comestible art. Not an errand.

Whole Foods is great for a night out on the town, but when I'm in my comfiest jeans and carrying my canvas shopping bag, it's Trader Joe's where I feel at home. When it comes to grocery shopping, only a select few (and I'd argue, many of those who live relatively idle lives) wish to enjoy the experience for its own rewards. The rest of us just want to get home with some good food and eat. For that? Trader Joe's is the clear winner, and its strategy of providing consistently good stuff at the lowest prices around gets my vote.

Be sure to vote in our poll for Trader Joe's or Whole Foods as your preferred brand, and let us know why you love it in the comments. Results of all Battle of the Brands match-ups coming soon.

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Last updated: July 09, 2009: 11:55 PM

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