California-based specialty grocer Trader Joe's confirmed Sept. 18 that it will open a third Austin store on Great Hills Trail in 2014.

The store will be located in the former Saks Fifth Avenue store, which closed in December 2012, at the Arboretum Market shopping center. Trader Joe's will be leasing 13,500 square feet of space.

The new location is less than one mile away from Whole Foods Market's Gateway store that Whole Foods plans to keep open after its Domain store opens Jan. 15. Sprouts Farmers Market also is located on Great Hills Trail at the intersection of US 183. H-E-B and Randalls also have stores at Braker Lane and US 183.

Trader Joe's opens its first Austin store Sept. 20 on Bee Caves Road in Rollingwood and is planning another location in the Seaholm Power Plant off Cesar Chavez Street.

The grocer is known for its low prices on domestic and imported foods and beverages, including artisan breads, Arabica bean coffees, juices, vitamins and international frozen entrees. It also sells items under the Trader Joe's brand, which includes salsa, fried rice and wine.