Aldi, the German discount grocery chain, has officially confirmed long-standing rumors it will open its fifth St. Paul store in the former Lunds & Byerlys space downtown. The store, to be located at 115 E. 10th St., is expected to open by the end of the summer, according to a spokesperson for the market.
The grocery released a written statement on behalf of regional vice president Matt Lilla on Wednesday evening, calling St. Paul “a vibrant and growing town, so we have selected a location that is the most convenient for the majority of residents. Our goal is to provide a shopping destination that supports high traffic volume daily while meeting the needs of our shoppers in every community.”
Lunds opened in 2014 adjoining the luxury Penfield apartments at 10th and Robert streets but closed the grocery last March, after struggling when downtown employers, including the state of Minnesota, shifted to remote work during the pandemic. The closure left downtown St. Paul, which has experienced a gradual conversion of office space to housing, without a grocery.
Interviewed before the store closing, chief executive officer Tres Lund said last year that an increase in store security expenses and decrease in customer visits had left operating costs outpacing sales. Meanwhile, staffers were difficult to retain following incidents of shoplifting, harassment, vandalism and an arson that caused upward of $500,000 in damage in 2022.
Some critics had called the Lunds grocery prices out of step with the surrounding neighborhood, which includes retirees on fixed income, residents living in luxury or affordable housing and a mix of private-sector and municipal workers. Company officials promised at the time that they would leave shelving, coolers and refrigeration in place and do what they could to accommodate another grocer moving into the space.
Aldi, which entered the U.S. market 50 years ago, plans to open more than 180 stores across 31 states this year, which would bring its total U.S. holdings to 2,800 locations. Its “westward expansion” strategy will include 50 new stores planned for the Denver and Colorado Springs markets within the next five years, as well as 10 new stores in and around Phoenix, Ariz., in 2026 alone, for a total of 40 new stores in the Phoenix market by the end of 2030.
In the southeastern United States, Aldi plans to convert 80 grocers to the Aldi format this year, for a total of more than 200 conversions in that market from 2024 through the end of 2027. Its plans also include new distribution centers in Florida, Arizona and Colorado, as well as a revamped website.
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