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August 22, 2025
Can Aldi and Lidl Ride Trader Joe’s Coattails in Manhattan?
Aldi and Lidl are both ramping up expansion efforts in Manhattan, where a third rival, Trader Joe’s, has found wild success.
Aldi confirmed plans to open its first store in midtown Manhattan. Slated to open in 2026, the 25,000-square-foot outpost — smaller than most Aldi’s — will be located within a luxury residential building on 42nd street between 8th and 9th avenue, on the edge of Times Square.
“Opening our first store in the heart of Manhattan will be a significant milestone for Aldi as we continue to expand access to affordable, quality groceries in the most in-demand locations across the country,” said Chris Daniels, regional VP at Aldi. “This location will allow us to provide New Yorkers with a simpler, quicker, and more enjoyable shopping experience with great products at the lowest prices, every day.”
The 42nd St. store will be Aldi’s second location in Manhattan, with the first opening in East Harlem in 2012.
Lidl, Aldi’s biggest competitor in Europe, just opened its second Manhattan store on the Lower East Side following its debut in Harlem in 2022.
Lidl said in a press release, “We’re the Super-EST Market in town for a reason, delivering unique options and unbeatable savings to our communities. At Lidl US, shoppers experience a curated collection of private label picks, global imports, and everyday name brands. From imported cheeses to fresh meats and seafood, you’ll get to experience the quality we’re famous for in Europe — without using your passport.”
Two other Lidl stores are planned in Manhattan, in the Chelsea and Kips Bay neighborhoods.
Trader Joe’s has expanded to 10 stores in Manhattan since opening its first to big fanfare in the East Village in 2008. The quirky, limited-assortment grocer has thrived in a city starved for affordable grocery options, including for organics, with the broad selection of quality ready-to-eat and frozen meals also ideal for time-strapped residents. The stores are also seen as a “tourist hot spot.”
@mattjames9191 one of the CRAZIEST things about living in NYC.. shopping for groceries 🛒🛒
The downside to the chain’s popularity are crowds. As this TikTok video attests, Manhattan residents have come to expect long checkout lines that can extend outside the front door.
In a ranking of the “Top Ten Most Intriguing Trader Joe’s Stores,” Trader Joe’s noted that the New York City borough contains “hands down the busiest Trader Joe’s in the world” at 72nd and Broadway.
“Covering two stories (three, if you count the entrance) and serviced by no less than two elevators and four escalators, 72nd & Broadway has about thrice as many check stands and thrice as many Crew Members as a typical TJ’s,” Trader Joe’s said. “This may sound daunting, but to our Manhattan customers and Crew, it’s just another neighborhood store.”
Discussion Questions
Will Aldi and Lidl likely find similar success in Manhattan as Trader Joe’s?
Do Aldi and Lidl complement or threaten Trader Joe’s in Manhattan?
Why has Trader Joe’s been so popular with Manhattan residents?
Poll
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Given the store will be part of a residential building, there is obvious a demand for groceries. Add all the transient foot traffic to this, and there is a decent commercial opportunity. However, Aldi will also be exploring what works in urban locations with a view to developing more city stores. And with price-focused retailers like Walmart largely absent from many cities, there is an opportunity for Aldi to exploit.
Oh and Trader Joe’s works in Manhattan for the same reason it works elsewhere. Great and innovative products, solid range of convenience foods and treats, sharp prices, friendly service. There is room for both Aldi and Trader Joe’s. And of course, Trader Joe’s is owned by the family that owns Aldi Nord – which is the sister operation to Aldi Süd which runs Aldi in the US.
Manhattan, I suspect, has a very odd – read bifurcated – distribution of incomes, with the very wealthy and the decidely unwealthy predominating…it’s a long way from the days of the Ricardos and Mertzes (tho it should be rememered that even back then they moved); so I expect Aldi will find many fans. To say they’re “riding Trader Joes coattails” makes little sense to me: all of these companies – LIdl, perhaps to a lesser degree – have strong followings and hardly need to shadow the other(s).
New Yorkers are going to flip out over Lidl’s 99 cent croissants. Expect lines!
It’s not about finding similar success as Trader Joe’s (or riding their coattails). It’s about finding the right location. These are good retailers with strong reputations. Depending on what neighborhood they move into and the competitive climate (or lack thereof), these brands can find great success. The key is finding the right location/market.
No doubt, Aldi and Lidl will find success in New York City.
The check out lines would do me in. It’s insane that people will stand 40 deep to buy groceries, but that’s the magic of Trader Joe’s.
Aldi and Lidl have a long and successful history as discounters, and Manhattan’s unique characteristics are ideal for both. The polarized income distribution and astronomically high living costs create a massive opportunity for affordable grocery retail. From uber-efficient Aldi to Lidl’s fresh bakery and European import selection, they can, with TJ, thrive in Manhattan. Traditional players, such as Morton Williams and Gristedes, face competition from three highly efficient, low-cost operators. That’s where the real market disruption will happen. Manhattan is unique in its density and diversity, and consumers demand execution excellence and are quick to punish mediocrity. Trader Joe’s may have gotten there first, but all three will find Manhattan a welcoming destination as long as they nail the format-to-location puzzle.
One reason is its convenient locations throughout the city, making it easily accessible for many residents. With several stores strategically placed near major subway lines and bus routes, it’s simple for people to stop by on their way home. Additionally, the compact size of the stores allows for a quick and efficient shopping experience.
Trader Joe’s thrives in New York because they’re able to offer a “foodie” treasure hunt- high-quality quirky items, a solid assortment of basics, and fun, easy-to-shop stores at great value.
As far as Aldi and Lidl coming in behind them, this is really a tale of two companies. I don’t think I’d put Aldi and Lidl in the same category. Can the business model succeed in Manhattan? Absolutely. There’s always going to be demand in New York City for budget-friendly basics, but when it comes to successful expansion, Aldi has proven time and again their ability to understand the US market and to make the right decisions on locations and logistics. Lidl has struggled. Can Manhantten be their turnaround? Absolutely, the concept is spot on. But will they.., however, is another question. They have serious challenges in the US, and I’m not sure that will suddenly resolve in New York City. I hope so, but we’ll have to see how it goes.
Astute point, Gary. While Aldi and Lidl both fall in the same general category of value food retailing, they are very different both in concept and in success level.