Trader Joe’s Copies Starbucks' Strategy

The Expansion Strategy of Starbucks and the New Move by Trader Joe’s

Walking down the street in almost any city, you’ll encounter the familiar green mermaid logo that has become synonymous with convenience. In many urban areas, these logos are as common as street signs, appearing on sidewalks, strip malls, office plazas, and even highway exit ramps. The presence of multiple Starbucks locations within a mile of each other is now a norm in cities like New York, California, and the Pacific Northwest. It seems like there's a Starbucks on every corner, and for good reason.

This saturation strategy was instrumental in Starbucks’ explosive growth. By 2017, around 62% of U.S. stores had at least one Starbucks rival right next door. This internal competition wasn’t just against Dunkin’ or local cafés; it often involved competing with themselves. While some critics argue that this model may have cannibalized sales, the convenience it offers to customers cannot be ignored. Whether you need a morning latte or an afternoon pick-me-up, a Starbucks is usually just a short walk away.

Starbucks' approach has always been about dominance and presence. The company ensures that it is the most convenient choice by outpacing local cafés and other chains through sheer availability. It’s akin to a game of real estate chess, where each new store captures more foot traffic and prevents competitors from setting up shop.

Now, it appears that Trader Joe’s is experimenting with a similar model. A recent development in Sherman Oaks, California, showcases this trend. A second Trader Joe’s store opened across the street from the original location, which first opened in 1973. Dubbed “Sherman Oaks too,” the new branch features modern upgrades such as convenient and ample underground parking. The store also has high ceilings and wider aisles, giving it a more contemporary look compared to other locations.

Instead of retiring the older store, Trader Joe’s chose to keep both open, emphasizing customer convenience and store differentiation. The veteran location offers a cozy, nostalgic shopping experience that appeals to long-time fans, while the new site caters to those who need more space and easier parking. According to a spokesperson, the goal is to bring delicious products at great value to more people.

The new Trader Joe’s location is about 40% bigger than its neighbor, according to reports. Some customers have expressed that the improved parking situation makes them unlikely to return to the older location, which they describe as having “cramped” parking. Others wish that Trader Joe’s would expand to other neighborhoods, but the company has plans to open five new stores in California before the end of this year, with another 16 stores set to open in other states before the end of 2025.

Trader Joe’s Reputation and Consumer Trust

Despite being known for its best snacks and sometimes criticized for its parking, Trader Joe’s has an enviable reputation among consumers. The grocer recently claimed the top spot in the 2025 Axios Harris Corporate Reputation Poll of 100 companies, with a reputational quotient (RQ) score of 82.1. Outdoor brand Patagonia came in a close second with an 82.0, followed by big names like Microsoft, Toyota, Costco, and Samsung.

The poll gathered insights from over 16,000 Americans, who rated companies across key categories like trust, ethics, culture, and overall customer experience. Putting consumers first paid off: Trader Joe’s saw the sixth-largest reputation boost (+3.5) this year, moving it to the number-one spot. Consumers clearly appreciate a brand that stands by them, especially when prices are rising.

Here is the list of all the top 10 brands named in the Axios poll:

1. Trader Joe’s
2. Patagonia
3. Microsoft
4. Toyota Motor Corp.
5. Costco
6. Samsung
7. Arizona Beverage Company
8. Nvidia
9. UPS
10. Apple

Whether you choose an old-school location like the original Sherman Oaks Trader Joe’s or head to one of the grocer’s newer locations, you'll likely be greeted by the same cheerful crew members the store is known for. Here’s hoping that won’t change as the grocer continues to expand.