SOUTH PASADENA, Calif. -- Trader Joe Co. here, a West Coast chain of specialty gourmet grocery stores, said it plans to expand to the East Coast in the fall of 1996.
John Shields, chairman and chief executive officer of the 68-store chain, said the company hopes to open at least 50 stores over the ensuing five years in the area between Boston and Washington.
He said the company is leapfrogging the country to expand on the East Coast because they need to have a very dense population base.
"Except for Chicago, there's no greater population density closer to the West Coast than the Mid-Atlantic area," he explained. "And population density is important because our concept works better economically in such areas."
Shields said Trader Joe's customers tend to be over 33 years old, with 80% having some college background and a higher median income level.
Founded in 1961, Trader Joe's has been owned since 1979 by Albrecht, Essen, Germany, which owns 12% of Albertson's, Boise, Idaho.
Since 1988, the company has grown from 39 to 68 stores and tripled its volume to $604 million.
Of its 68 stores, 35 Trader Joe's are in southern California; 27 are in central and northern California, and six are in Arizona.
The company will open two stores in Portland, Ore., later this month and a third store there in April. It also plans to open at least one store in Bellevue, Wash., and one or two stores in the Las Vegas area later in the year, Shields said.
The stores carry only about 1,500 items at any one time -- all of which have no artificial ingredients. Shields said 83% of those items are private label.
