The Correlation between High End Grocery Stores and Income

An insight to the presence of Trader Joe's and the affects it has on surrounding communities

Area of Focus

The area I decided to focus my research was the Western part of the Inland Empire Metropolitan area in Southern California. This area consists of cities in San Bernardino County as well as one city (Claremont), which is on the border with Los Angeles County. The reason for choosing this specific region is that it is one with lots of familiarity to me. I have been able to witness different types of disparities just by living here essentially. Specifically, I focused on the following cities: Chino, Chino Hills, Claremont, Montclair, Ontario, Rancho Cucamonga, and Upland. I feel as though this range of cities does a respectable job at giving an insight into high amount of wealth in contrast to much lower wealth.

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Breakdown of Incomes per Census Tract

Insight into Census Tract Map

This first map was one I wanted to display in order to really show the disparities present in the region. As shown on the map, cities will literally be right next to you each other and display these vastly large gaps in their wealth. Cities will have six figure incomes and just a few miles away you will see census tracts with a fraction of that. It gives those who research into this field and idea of the type of disparities cities at this scale face. The pink boundary lines I used as a means of showing the size of some of these cities. Some of the larger cities you can see wealth disparity within them with a lot of the time the further North you get the higher the income becomes. I have found that based on the location of the San Antonio Mountain Range to the North, this can have something to do with the income. Southern cities like Chino Hills, also have close proximity to mountain ranges which could explain why even though they are not North, they still experience high income levels.


Why compare Trader Joe's and stores like 99 Cents Only Stores, Dollar Tree, & Cardenas?

I felt as though Trader Joe's served as an indicator of wealth and status. Growing up, there was never a Trader Joe's to me closer than 10 miles. That meant that whenever my mother wanted to visit one, it was a 20 mile journey in total. All of them tended to be built in nicer areas, the people there didn't mind splurging hundreds of dollars on their grocery. Closer to me were these stores that did not cost as much such as 99 Cents Only Stores and Dollar Tree. These stores appeared in much closer proximity and were larger in numbers, meaning there were many to choose from. There is a big difference in both reputation and cost between these stores. Trader Joe's has a reputation for its high quality products while the others are more associated with low cost hence their names. Yet a social issue question comes to mind of why are wealthier people entitled to higher quality products? This isn't flat out saying lower income individuals don't have access because everyone is free to shop there. Yet the accessibility and location of these stores makes it seem as though they cater more towards people in these wealthier areas.


Presence of Grocery stores in Inland Empire

The map below illustrates the boundaries of cities I decided to focus on in the Inland Empire. The cities all range in sizes and income. Yet they all remain in close proximity. I focused on comparing 4 different companies for the reasons that Trader Joe's is the most popular store in the tier I would describe as high end. 99 Cent Only Stores and Dollar Tree advertise themselves as being extremely low cost as shown in their name. These two are on extreme ends of the scale as Trader Joe's is labeled as more expensive. Cardenas was used to demonstrate their reliance and appeal to Latinx/Hispanic populations in the region. As seen on the map Trader Joes does not build large numbers of its stores. Rather they choose to be selective, only in wealthy tracts. On the other hand, the other three stores built in primarily lower income areas. The message this gives off essentially is that wealthy people deserve the best quality stores while less wealthy people should only have close access to cheap options. The large distances needed to travel to stores dissuade people from wanting to go. A single store has so much power as to altering the region to have a hold and the ability to pull customers from large distances.

Gentrification

The phenomenon of Gentrification is one that has plagued cities and regions all over the U.S. It has reached the Inland Empire where Los Angeles residents tired of high rent and cost of living move into the region seeking cheaper housing options. With them they bring high salaries, education, and competition. The market to buy homes becomes smaller when so many people compete to buy a home. New homes are built, with large price tags on them. Near these homes, new high end stores such as Trader Joe's, Sprouts, and Whole Foods begin to make appearances. The recognizable brand pulls in customers and pushes up the cost to live near them. This is all shown in the New York Times article, "Whole Foods and Trader Joes Downstairs, Higher Rent Upstairs", where they focus on the correlation of these stores and increasing rent. "Having a premier grocer rewards landlords" (Kolomatsky, 1). Trader Joe's is such a recognizable brand that the mere name can be linked to increasing rent.


Median Home Income Map

This map shows the median home prices for the area of focus. The spheres indicate the approximate area of influence that stores like Trader Joes have in their areas. The spheres are not very large to show that they don't appeal to a lot of people. They choose to focus on areas close around to them.


Drawing Parallels

The gentrification that Trader Joe's is a part of affects also communities well established and often times composed of people of color with lower incomes. Trader Joe's builds its stores and and indirectly the community around them changes. Income changes and demographic changes often are the most notable changes that can be seen. As seen in The Atlantic's article, "When a Grocery Store Means Gentrification", " Portland African American Leadership Forum wrote a letter protesting the development, arguing that the Trader Joe's was the latest attempt to profit off the displacement of African Americans in the city" (Smith,1). As seen in the city of Portland, the neighborhood in which the Trader Joe's was supposed to be built in was a Black neighborhood. The building of the store would have displaced these people who would have to compete with white professionals moving into the area thus driving the cost to live there up. This is what Trader Joe's does, displaces people in order to reach more of its target demographic and income level. The company realizes its power and influence over a population and how they can alter it to benefit them. What occurred in Portland is an example of the preserving of a community against gentrification.


Conclusion

Trader Joe's is a highly successful company in its right. It's products appeal to many buyers and they pride themselves on how quality products. The problem is that these stores do not cater towards everyone. They position themselves in places where income is at its highest and where they can change communities into new sources of customers. Trader Joe's is not accessible to lower income areas based on the distance many have to travel to even shop there. The Inland Empire is just one area representing the whole U.S where the disparity exists. Trader Joe's is not just a store, but an image. An image of wealth that is associated with people who shop there. The store attempts to keep its image by keeping its stores out of low income areas thus adding to stereotypes that less wealthy people don't shop at these stores. Trader Joe's tells us a lot about society and the issues we face. A store now has the power to change communities and can also show off wealth. Instead of this, stores like this should help bridge the gaps in disparities drawing people together. Shopping for expensive food items should not have a huge effect on our communities as it currently does.

Citing

Photos: Photo 1: iStock / Photo 2: Shutterstock / Photo 3: Christian Storm/ Business Insider / Photo 4: TotallyPDX

Sources:

https://www.theatlantic.com/notes/2016/08/trader-joes-portland-controversy/496058/

https://www.nytimes.com/2020/09/24/realestate/whole-foods-trader-joes-higher-rent.html

Breakdown of Incomes per Census Tract