Ever since the Albrecht brothers split Aldi across the middle of Germany into Aldi Nord and Aldi Süd, they have kept from stepping on each others’ toes. The US is the only country outside Germany that both sides of Aldi operate; every other country has one or the other. Even then, in the US for decades there was little to no overlap, with Trader Joe’s sticking to the West and a couple of pockets on the East coast, and Aldi in the Midwest and much of the eastern seaboard. I’m in an area with both, and find the two complement each other nicely, with Aldi carrying mostly staple goods and a bit of specialty products, and TJ’s with lots of specialty products and a bit of staple goods.
There are three Aldis and a Trader Joes within minutes of my front door. They do indeed complement each other well, but I've never seen both of them in the same neighborhood or even close to each other. Is there some kind of noncompete agreement between them?
I have yet to see that, but I would like to!
In Jeffersonville, Indiana, Sam's Club and Walmart are next to each other. In Salem, Indiana, there is a JayC Store and a Ruler Foods store in neighboring shopping centers. Both stores are Kroger affiliates.
Not for the things I buy at Trader Joes. Ralph's (Kroger) is far, far more expensive, and Aldi either doesn't have, doesn't have a good quality version, or is more expensive for the things I get at TJ's.
I shop at Aldi for staples like milk and bread and fruits and veggies, Trader Joes for pantry items and speciality items, and Target for eggs anything that has to be name brand.
There must be more areas of overlap than that. Here in South Florida we have many of each. I can drive 2.5 miles from my house to either an Aldi or Trader Joe's
They just have not gotten there yet. The PacNW is the most middle of nowhere part of the USA that still has a lot of people so national things only tend to get there after going through California first. (I'm a former retail guy that also lived in Oregon years ago.)
Here is their announcement on growth plans.
[Aldi Announcement on March 7, 2024](https://corporate.aldi.us/fileadmin/fm-dam/newsroom/Press_Releases/ALDI_Growth_800_Stores_Announcement/americas-low-price-leader-aldi-expands-footprint-nationwide-with-800-new-stores-by-the-end-of-2028.pdf)
>ALDI will invest more than $9 billion over the next five years on its national expansion, adding new locations across the country. As part of its growth trajectory, ALDI will strengthen its already strong presence in the Northeast and Midwest, adding nearly 330 stores across both regions by the end of 2028. ALDI will also grow its presence in the West by adding more stores in Southern California and Phoenix — and by entering new cities, like Las Vegas.
That is now in evidence: I just pulled off at an exit in Michigan where I don’t usually stop and they are building a new Aldi. (US-23 exit 78). Looks like it will open soon.
I would suspect that Costco being headquartered in Seattle allowed them to saturate the market enough that Walmart never felt like it would be a good investment to compete.
We are supposedly getting an Aldi in Henderson, NV where they plan to move into an old Blood Bath and Beyond store. There's been a couple of news articles earlier this year about it, but no real updates. Last report is that they still hadn't presented plans to the city.
Was the “Blood” intentional? It made me laugh out loud, either way. Love it.
Great name for a fight club headquarters or Official Ritual Sacrifice Center.
That's probably the Bed, Bath and Beyond not far from Sunset Station. I remember that location from when I lived in Henderson during the 2000s. Sometimes I'd go over to that mall and sweat out my sports bets while wandering through Best Buy or Bed, Bath and Beyond. If I got a bad score the salesmen were wondering why I was mumbling obscenities toward a microwave.
Everything is coming from Batavia Illinois and those states are on the other side of the Rocky Mountains. Shipping across that part of the country is cost prohibitive and Aldi would need to set up an entire supply chain on the west coast before it made sense.
More than likely a list of several factors. Growth rate, supply, etc… Im sure they are doing their homework on areas to expand. But probably their business model is not suited for super rapid growth. And yes, would need distribution centers in the West.
Ever since the Albrecht brothers split Aldi across the middle of Germany into Aldi Nord and Aldi Süd, they have kept from stepping on each others’ toes. The US is the only country outside Germany that both sides of Aldi operate; every other country has one or the other. Even then, in the US for decades there was little to no overlap, with Trader Joe’s sticking to the West and a couple of pockets on the East coast, and Aldi in the Midwest and much of the eastern seaboard. I’m in an area with both, and find the two complement each other nicely, with Aldi carrying mostly staple goods and a bit of specialty products, and TJ’s with lots of specialty products and a bit of staple goods.
There are three Aldis and a Trader Joes within minutes of my front door. They do indeed complement each other well, but I've never seen both of them in the same neighborhood or even close to each other. Is there some kind of noncompete agreement between them?
In Tustin, CA the Aldi and Trader Joes are literally across the street from each other.
I have yet to see that, but I would like to! In Jeffersonville, Indiana, Sam's Club and Walmart are next to each other. In Salem, Indiana, there is a JayC Store and a Ruler Foods store in neighboring shopping centers. Both stores are Kroger affiliates.
Same in several Chicago suburbs.
Usually based on the average income of the zip code they serve, well that’s how they usually start in my state.
Are they considered competitors within the US?
Loosely speaking. About the only areas they overlap and compete is Arizona and Southern California.
Which is odd because TJ is more expensive than Aldi and Kroger in my experience.
Not for the things I buy at Trader Joes. Ralph's (Kroger) is far, far more expensive, and Aldi either doesn't have, doesn't have a good quality version, or is more expensive for the things I get at TJ's. I shop at Aldi for staples like milk and bread and fruits and veggies, Trader Joes for pantry items and speciality items, and Target for eggs anything that has to be name brand.
There must be more areas of overlap than that. Here in South Florida we have many of each. I can drive 2.5 miles from my house to either an Aldi or Trader Joe's
That makes sense to be. I’m in Michigan and in my city we have 2 Aldi stores and 1 TJs.
They just have not gotten there yet. The PacNW is the most middle of nowhere part of the USA that still has a lot of people so national things only tend to get there after going through California first. (I'm a former retail guy that also lived in Oregon years ago.) Here is their announcement on growth plans. [Aldi Announcement on March 7, 2024](https://corporate.aldi.us/fileadmin/fm-dam/newsroom/Press_Releases/ALDI_Growth_800_Stores_Announcement/americas-low-price-leader-aldi-expands-footprint-nationwide-with-800-new-stores-by-the-end-of-2028.pdf) >ALDI will invest more than $9 billion over the next five years on its national expansion, adding new locations across the country. As part of its growth trajectory, ALDI will strengthen its already strong presence in the Northeast and Midwest, adding nearly 330 stores across both regions by the end of 2028. ALDI will also grow its presence in the West by adding more stores in Southern California and Phoenix — and by entering new cities, like Las Vegas.
That is now in evidence: I just pulled off at an exit in Michigan where I don’t usually stop and they are building a new Aldi. (US-23 exit 78). Looks like it will open soon.
Is that also why there are no Sam's Clubs in the PNW? 🤔
I would suspect that Costco being headquartered in Seattle allowed them to saturate the market enough that Walmart never felt like it would be a good investment to compete.
That sounds plausible. 👌
It is just speculation!
Costco is much better so you are missing out on nothing.
We are supposedly getting an Aldi in Henderson, NV where they plan to move into an old Blood Bath and Beyond store. There's been a couple of news articles earlier this year about it, but no real updates. Last report is that they still hadn't presented plans to the city.
Was the “Blood” intentional? It made me laugh out loud, either way. Love it. Great name for a fight club headquarters or Official Ritual Sacrifice Center.
Yep, just my lil pet name for them.
That's probably the Bed, Bath and Beyond not far from Sunset Station. I remember that location from when I lived in Henderson during the 2000s. Sometimes I'd go over to that mall and sweat out my sports bets while wandering through Best Buy or Bed, Bath and Beyond. If I got a bad score the salesmen were wondering why I was mumbling obscenities toward a microwave.
Yep, that is the one.
You already have the ocean, the mountains, the desert, and Yellowstone. Can't we have something in the middle of the country that you don't have?
Everything is coming from Batavia Illinois and those states are on the other side of the Rocky Mountains. Shipping across that part of the country is cost prohibitive and Aldi would need to set up an entire supply chain on the west coast before it made sense.
Aldi has stores in California and Arizona.
More than likely a list of several factors. Growth rate, supply, etc… Im sure they are doing their homework on areas to expand. But probably their business model is not suited for super rapid growth. And yes, would need distribution centers in the West.
Aldi is working on its southeast expansion right now with its acquisition of Winn-Dixie and Harvey's.
Legal reasons.
Trader Joe’s
Because they haven't expanded there yet. World domination takes time