Trader Joe’s is Aldi, but not that Aldi… though sort of, but not exactly. What you just read is completely correct, though if you are confused, don’t feel bad – so was I. The stores are only located in larger metropolitan areas, which is why I have never been to one. To figure out what’s going on, we have to go back to pre-WWII Germany. But first…

A guy named Joe Coulombe started a chain of convenience stores around the Greater Los Angeles area back in 1958. It took almost a decade, but Joe realized that his Pronto Markets were basically 7-Eleven clones, and competition was high. So basically, he decided to rip off Trader Vic’s in Beverly Hills, even using a similar Tiki theme. The first re-named Trader Joe’s opened up in Pasadena back in 1967.

Apparently the stores became popular because they were less expensive than Trader Vic’s. Of course they were, Pasadena is not Beverly Hills. Another reason for success is due to things that are completely obvious and ubiquitous today. Trader Joe’s offered sliced meat and cheese and fresh sandwiches in-store. My gosh, that’s called a deli, but I guess it was revolutionary in California at the time. They also carried items that other stores did not, targeting a more educated and well-traveled customer base.

All of that explains where the name Trader Joe’s comes from, but most of that doesn’t matter. The company has been owned by Aldi Nord since 1979 and the business practices we are familiar with today come from a global German grocery giant. How’s that for alliteration?

This is where all the Aldi stuff comes in…

The origins of Aldi go all the way back to Essen, Weimar Republic, circa 1913. Karl and Theo Albrecht worked in their mother’s store, born in 1920 and 1922, respectively. They eventually took over the business in 1945 once relieved from the German Army. Let that sink in. Within five years, the brothers owned 13 locations in the Ruhr Valley area. Their success was due to aggressive discounts, which they could afford by not advertising, not carrying fresh produce, and removing items that did not sell fast enough.

You may have noticed that Trader Joe’s is owned by Aldi Nord, and here’s the explanation for the name. In 1960, the brothers had a disagreement about selling cigarettes. Karl believed that doing so would attract shoplifters because that makes total sense. By this time, the Albrecht’s owned 300 stores and were raking in 90 million Deutsche Marks a year. Converting DM to $ and adjusting for inflation is over 863 million in 2022 dollars.

The name Aldi was created, short for Albrecht-Diskont and the company was amicably split up. Karl took Aldi Süd (controlling the stores in southern Germany), and Theo got Aldi Nord (controlling stores in northern Germany) and sold cigarettes all he wanted.

Since the 60’s, the Aldi Group has greatly expanded and has over 10,000 stores across the globe. As in Germany, Aldi Nord and Aldi Süd have divided Western Europe equally between themselves. Aldi Nord also operates in the U.S., China, and Australia under the Aldi name. Aldi Süd runs Aldi-named stores in French Guiana for some reason and in the U.S. as Trader Joe’s – now we’ve come full circle.

Trader Joe’s is Aldi. Aldi Nord, not Aldi Süd, but they are both controlled by the Aldi Group – and there you go. If you shop at Trader Joe’s because it’s hip and trendy, remember: it’s just Aldi with a different sign outside. Which was founded by a Nazi.