Aldi Hits Texas and Florida; Is Trader Joe's on the Way?

(MoneyWatch)  German discount grocer Aldi will open a distribution center and 13 Aldi stores in Florida and a warehouse and as many as 35 stores in Texas. Chowhounds in both states are rejoicing because where Aldi goes, Trader Joe's follows.

Aldi and Trader Joe's are owned by a trust controlled by German brothers Karl and Theo Albrecht. Worldwide, they operate more than 7,500 stores, mostly in the extreme value Aldi format where 1,300 SKUs of staple goods are displayed on pallets or cut cases. Where the 850-plus Aldi stores in the United States operate in lower-income neighborhoods, selling store-brand corn flakes and soda, the 310 Trader Joe's focus on well-priced private-label gourmet groceries like frozen edamame and chocolate-covered popcorn.

But operationally, the stores are similar: limited selection, small-footprint outlets that specialize in opportunistic buys and private labels that keep costs as much as 50 percent lower than name-brand items. In 2007, Trader Joe's sold an estimated $6.5 billion, while Aldi had revenues of $5.8 billion, according to Supermarket News. While Aldi is often dismissed as a niche player, SN's David Orgel points out the chain is well-positioned to take share from Wal-Mart and Target as middle-class shoppers seek to lower their grocery costs.

After opening a distribution center in Salisbury, N.C., in the late 1990s, Aldi expanded into the South. Now, six Trader Joe's stores in metro Atlanta and four in North Carolina will be joined by a rumored store in Greenville, S.C. The Haines City, Fla., warehouse and initial stores in Orlando and Florida's east coast will open later this year. Aldi's Denton, Texas, distribution center will open in 2009, followed by discount stores in greater Dallas -- and, Texan foodies hope, access to frozen fish tacos and Two Buck Chuck.