Trader Joe's looking to set up first store in Dallas area

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by CYNTHIA VEGA

WFAA

Posted on May 3, 2011 at 12:48 PM

Updated Tuesday, May 3 at 3:59 PM

DALLAS — North Texans are about to get a new option for grocery shopping.

Trader Joe's grocery store is preparing to open ten new stores in Texas, including one in the Dallas area. The new stores would be the chain's first Texas locations, and the Dallas-area store is expected to be the first to open.

The California-based chain is still shopping for a location, but said it is excited about coming to Dallas.

The grocer is still looking at possible locations within the city limits and out into the suburbs as well.

Trader Joe's has a hip reputation for offering "designer foods" at affordable prices. One of its best-known offerings is their $2-a-bottle California wines.  

Mike Davis, an economist with the Southern Methodist University Cox School of Business, said the arrival of Trader Joe's in Dallas is a good thing.

"It means Dallas is growing because Trader Joe's is not going to go into a market that's not growing," he said. "It also means we're affluent, because Trader Joe's is catering to kind of a higher-end customer."

Davis said Trader Joe's arrival in town will also increase competition for grocery stores already in town.

"Trader Joe's has all kinds of interesting and unique products at pretty good price points for the consumer," he said. "So, they have got exotic foods, but with not typically very high prices."

He suspects upscale grocers like Whole Foods and Central Market stand to lose the most business with the store's arrival.

Davis said North Texans who live closest to the new location of Trader Joe's — wherever it is — stand to gain the most because its arrival will immediately "spruce up" nearby grocery shopping opportunities.

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