Do We Have Too Many Aldi Stores for Trader Joe’s to Open in Lafayette, Louisiana?

Over the weekend, I overheard a conversation in which someone claimed that Lafayette lacks a Trader Joe’s because “we have too many Aldi stores.” While I instantly side-eyed the comment, my curiosity was also piqued, prompting me to investigate the validity of this assertion. As it turns out, this common misconception holds no water.

The belief that Trader Joe’s won’t open in a town with Aldi stores stems from the notion that the two are part of the same company and would thus compete with each other. However, the reality is quite different. While it is true that Trader Joe’s and Aldi Nord, which owns Trader Joe’s in the United States, share familial ownership, they are independently operated. Aldi Nord has no business or ownership relationship with Aldi Sud, which encompasses Aldi U.S.

A report from Plymouth Independent earlier this year also dispels this myth. It explains that the ownership overlap does not impact where the stores choose to locate. The comparison drawn in the report is akin to TJX Companies locating both Marshalls and T.J. Maxx in the same city or town—something we see frequently.

When it comes to determining where to open new stores, Trader Joe’s employs a multifaceted approach. According to a 2018 Freakonomics podcast, the company considers various factors, including public requests for new store locations and local economic conditions. For instance, Trader Joe’s tends to open stores in areas with household incomes about $10,000 above the median. As of 2022, Lafayette’s median household income was approximately $58,850, which is below the national median of $74,580. This economic factor plays a significant role in Trader Joe’s decision-making process.

Trader Joe’s also has a rigorous internal review process for potential sites. About 20 percent of location requests make it to the first round of internal review, and only half of those proceed to the final stages. In essence, only about 10 percent of requests result in a new store opening. The company is growth-oriented but also selective, aiming to open 20 to 25 new stores annually.

For Lafayette residents hopeful for a Trader Joe’s, it’s not the presence of Aldi stores that poses a barrier but rather a combination of economic factors, logistics, and strategic decisions. Those eager for a Trader Joe’s in Lafayette can still make their voices heard by submitting location requests through Trader Joe’s online form. Providing specific details about potential store locations that offer high visibility, easy access, and ample parking can help strengthen the case for a new store.

While it might be disappointing that a Trader Joe’s hasn’t opened in Lafayette yet, there are so many complexities behind such decisions. For now, residents might have to continue making trips to the nearest Trader Joe’s location in Baton Rouge, but the dream of having one in Lafayette is not entirely out of reach.