After entering the north Texas market two years ago, Batavia, Ill.-based deep-discount grocer Aldi Inc. now has its eyes on expanding south.

According to an article in the Houston Chronicle, residents in one Houston suburb oppose the retailer’s first store in the area, reportedly planned for the Oak Park Trails subdivision in Katy.

Residents told the Houston Chronicle they oppose the new development because they thought it would bring traffic, noise and light pollution. Aldi responded by putting in a turning lane and changing lighting designs to deflect away from houses.

Residents also complained the upper-middle-class neighborhood was not the right fit for a discount retailer.
Aldi spokeswoman Lauren Acosta said the retailer has 35 stores in Texas, nearly all of which are in the Dallas-Fort Worth area.

“Houston is a key growth market for Aldi over the next couple of years,” she said. “However, we’re not ready to disclose the specific timing or number of stores at this time.”

H-E-B expands  discount banner

Joe V’s Smart Shop, the discount banner from San Antonio-based H.E. Butt Co., plans to open its fifth Houston-area location in Baytown.

The retailer’s fourth location opened in December in the Houston suburb of Shepherd, according to an article in the Houston Business Journal.

Joe V’s focuses on deeply discounted food and household items.

Trader Joe's looks to Texas

On the other end of the retail spectrum, the much-awaited appearance of Monrovia, Calif.-based Trader Joe’s in Texas is on the horizon.

The retailer does not grant trade media requests, but according to its website, stores are coming soon to Dallas, Knoxville, Plano and The Woodlands.

An employee also confirmed a location is planned for Austin by the end of 2012. A total of 10 stores are planned for the initial Texas expansion.