Aldi to take over former Lunds & Byerlys space in downtown St. Paul, city says

A new grocery store is planning to open where another one closed almost a year ago in downtown St. Paul.

Aldi is preparing to move into the former Lunds and Byerlys location at East 10th and Robert streets, according to city permit filings.

Building permit applications describe a remodel of the existing storefront inside the Penfield complex, with work expected to begin in mid-March and wrap up in late June.  

City Council President Rebecca Noecker said the closure of Lunds last March was tied to shifting downtown economics after the pandemic, along with concerns about safety.

"They had a model that was really predicated on downtown office workers. It was very much oriented toward a commercial market," Noecker said.

But with fewer office workers coming back, that model changed.

"Post COVID, that market had really changed. So, I think they struggled post-pandemic and then they had some concerns about safety as well in that neighborhood," Noecker said. "One of the things I heard consistently from my constituents, frankly, both when Lunds was there and after they announced that they were leaving, was, number one, we need a downtown grocery store. This is not optional. This is the linchpin of our community. Downtown is a neighborhood and a neighborhood needs a neighborhood grocery store."

She says price point matters too.

"The price point really needs to reflect the demographics of the neighborhood and of the surrounding community," Noecker said.

Noecker pointed to recent changes around the site — including a new park, street reconstruction and a new transit line — as reasons she believes the area can better support a grocery store now.

"Aldi actually found us, which is, I think, something that says a lot about downtown St Paul," Noecker said. "I think it's important to say this is a huge win for downtown St Paul and a huge win for our entire community, and I think it's a great sign of the progress that we have already made, and a good sign of the things to come." 

A resident who lives above the proposed site told WCCO she is excited about the possibility of shopping close to home again, saying it would mean no longer having to travel outside downtown for groceries. The resident declined to go on camera.  

WCCO has reached out to Aldi for more details, including when the new store could open, but has not heard back.