The 17,000 sq ft unit in Edmonton Green, London, opened last month.
"Being inside London has its challenges and we need to understand those before we go crazy and have any massive openings down there," said operations director Joe Morris. "There's the distance from head office, higher labour costs and recruitment, and retention is difficult. But so far it has traded well."
TJ Morris, which is ranked third in The Grocer's list of independent grocers, operates 240 Home Bargains and plans to expand to 350 stores over the next two to three years.
"We're now up in Dundee in Scotland and opened a store in Northern Ireland. We're slowly spreading north and south so we're not a national retailer yet but that's the plan," Morris added.