Photo courtesy of Trader Joe’s
July 1, 2025
Should Trader Joe’s Open Stores Next To Each Other?
Trader Joe’s has opened a store in Sherman Oaks directly across the street from one of its first California stores opened in 1973. The twist: They’re aiming to keep both open.
The new location, affectionately called “Sherman Oaks too” on Trader Joe’s website, is 40% larger than the older location with wider aisles and bigger floral, refrigerated and frozen sections. It also features an underground garage, a major upgrade from the cramped outdoor parking lot across the street.
Matt Judd, the new store’s manager, told Today.com that the initial plan was the retire the old location when the new store was ready, but the grocer decided to keep both given the strong traffic in the area. Judd said, “Somewhere along the line, we decided maybe we could see how two goes for a little bit. There’s that much business here, and we’ve had such a great relationship with our customers for 52 years.”
Trader Joe’s reportedly recently signed a three-year lease on the old location.
Social media commentators were confused by the nearby opening with some comparing it to how Starbucks opens stores in close proximity to others, but locals liked the spacious aisles and parking lot at the new location.
@usatoday Are you seeing double? #LosAngeles shoppers were confused to see a #TraderJoes ♬ original sound – USA TODAY
In a similar move, Publix in 2023 opened a store at a new shopping center, Pembroke Pines, across the street from an existing location. Publix told Local 10 News the new store alleviates congestion at its original location and offers support for “the best traffic patterns in a particular area.”
Beth Azor, CEO of Azor Advisory Services, a real estate management firm in Florida, believes Publix opened the second location as a defensive tactic, estimating a typical 40,000-square-foot-store generates $40 million in revenue. She said, “With numbers like that, it is worth it to invest in a ‘protecting the perimeter strategy’”
In a similar set-up, Trader Joe’s in Boston has two stores on the same street, only five blocks apart. On a Trader Joe’s podcast last year, the grocer said the close proximity at those Boston locations supports the customer and associate experience.
Tara Miller, Trader Joe’s marketing VP, said on the podcast, “If there are too many people, customers aren’t having a good time, crew members probably aren’t having a good time, and that just makes the Trader Joe’s experience a little bit less fun.”
Discussion Questions
When, if ever, does it make sense for Trader Joe’s to open a store within close walking distance of another store?
Do you see such clustered openings as an aberration or do you suspect it will become more common in the years ahead?
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Having stores so close to each other is unusual, and I don’t think it is something Trader Joe’s intends to make a habit of. However, in this specific instance, it (sort of) makes sense since one is integrated into an apartment complex and has better parking, while the other is an older location. There is clearly enough demand for both, although I am not sure this approach is the most efficient.
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There might be some logical reason for this – keeping a competitor at bay, lease obligations, publicity – but no, it’s not normally a rational idea. (And I don’t find the comparison to Starbucks or to a gas station or whatever to be very apt….we’re dealing with radically different cost structures.)
TJ’s may state publicly that it wants to keep both locations open, but I wouldn’t bet the house on it. Chains like Walgreens and Starbucks have already learned that too many locations may not be a strategic assets, and in Trader Joe’s case it serves as a “destination store” more than most groceries.
This setup allows customers to enjoy a more pleasant shopping experience with shorter lines and easier access to products. Additionally, it can capture foot traffic from different neighborhoods, increasing overall sales and brand presence. However, the real question is how much analysis, and research has been done to determine if the market size in a very specific location is large enough for two stores.
Certainly this is an unusual situation for Trader Joe’s. Reading between the lines, I surmise that the existing Sherman Oaks store was insufficient in size to comfortably meet shopper demand. In an affluent, car-oriented suburb, it’s not crazy to open another, roomier location across the boulevard that may provide easier access for some shoppers.
I’m sure the TJ’s team has crunched the numbers regarding the next three years. Once the older lease is up, I expect the results will drive the decision to keep that store open, or not.
Hmmmm, this feels like more of a business decision/opportunity than an intended strategy. It is strange to have 2 stores across the street from each other with the same merchandise. I have seen situations where this does make sense and works. But it is usually on a case by case basis where the traffic completely outweighs the cost of running the stores.
Two Trader Joe’s stores, located across the street from each other, that carry the same merchandise is kind of odd. I would wager that the older location will close when its new lease runs out.
Yes, in urban areas, where smaller, older stores were originally used, and there is a tremendous amount of public support that overruns the original store, it would certainly make sense to open a newer location as a support store, or a defensive support for the original store.
Site selection has a ton of variables that often aren’t immieditely apparent to outsiders looking in. A large Mexican food and convienience chain has opened stores across the street from each other, and merchandises the grab and go differently. One store serves inbound traffic, the other store catches people on their way home.This matches the traffic patterns and makes it easier for their customers to visit their stores enroute and not have to make left turns across busy streets.
Trader Joe’s is looking at traffic patterns, parking demand, market saturation and, in their calcuations this makes sense. Given their track record, I would guess this will be a win.
Gary, the traffic pattern angle is valid for that busy stretch. It’s a ready-made experiment.
Time will tell…always does.
I don’t see the need for a whole lot of head scratching here. A bigger better location becomes available and they grab it, locking out a competitor. The math will very quickly determine whether or not it makes sense to keep the old store open. And it may may sense to keep it open, if only to lock out a competitor. Dense, affluent populations can play by different rules.
If there’s enough business to support two stores across the street from each other, it is a good idea for the reasons listed in the article. The first thing I thought of was that if the store is so busy and it’s hard to park, people might find an easier experience with a competitor. And, I remembered what the great philosopher, Yogi Berra, used to say: “Nobody goes there anymore. It’s too crowded.”
Trader Joe’s has two problems. 1) Store crowded. 2) Limited parking. A larger, second store with underground parting solves both. Plus the new, larger store offers a few things the smaller, older store doesn’t. It won’t be the first time breaking the rules improves performance.
It’s definitely unusual to see a retailer open two stores across the street from each other, but when a location is that busy, it might make sense. A second location can ease the pressure of long lines and crowded aisles while preserving the in-store experience. I’m curious to see what will happen to the original location once the three year lease it up.
This is a brilliant short-term brand protection. Imagine the customer experience if you close a beloved 52-year-old location before customers have “bonded” with the new location and personnel. Trader Joe’s has prioritized customer convenience and community relations over short-term efficiency. It’s a “luxury” strategy that only works when you have both strong margins and deep customer loyalty. Trader Joe’s is conducting a three-year experiment to gather data and understand migration to the new location, including whether the immediate area can support two stores, what the actual cannibalization rate looks like, and possibly orchestrating a graceful closure of the old location.
They’re carefully watching their customers at the old store like scientists follow sharks. It’s all a test with their customers as the guinea pigs.
Ultimately, they will reallocate assets to a new location further away to attract and serve new customers.
For now, it’s a laboratory.