Nearly a year after Lunds & Byerlys closed, Aldi to open in downtown St. Paul

Aldi is preparing to take over the former Lunds & Byerlys storefront in downtown St. Paul, bringing a grocery store to the urban core that’s gone nearly a year without one.

Work to remodel the space should start March 16 and run through June 22, according to building permit applications filed last month for the property at the corner of E. 10th and Robert streets.

The return of a grocery store would be welcome news to a downtown seeking reinvention in the wake of the COVID-19 pandemic. As the area struggled with the loss of office workers and the collapse of its largest property owner, the closure of Lunds & Byerlys last March became a symbol of downtown St. Paul’s languishing state.

Now Aldi’s arrival could deliver a boost to city leaders’ broader downtown revitalization plans, which have repeatedly called for more housing in the area. A grocery store is a key amenity to attract and retain residents and developers.

“It’s just one of those essential bits of infrastructure,” said Joe Spencer, president of the nonprofit St. Paul Downtown Alliance. “You want to see these kinds of retail amenities whether you’re living, working or visiting a downtown, so this is really great news.”

Officials at the time lauded the 2014 opening of Lunds & Byerlys for similar reasons. The store sat on the lower floor of a city-funded luxury apartment building, part of a wave of new downtown development in the 2010s that included attractions like the St. Paul Saints’ CHS Field and the Palace Theater.

The pandemic cut off that momentum. Commuter foot traffic remained low in 2024, when Lunds & Byerlys reduced its hours by 35% and made its deli, meat and seafood departments self service.

At the time, Lunds & Byerlys said it would work with the city to keep the store’s equipment in place in hopes of a future grocer taking its place. In a Feb. 23 statement, newly elected Mayor Kaohly Her said filling that void was one of her top priorities.

“I want to thank Aldi for choosing to invest in our city and contributing to our vision of revitalization,” she said. “My administration will continue making it easier for businesses and residents to put down roots here and ensuring that being downtown is a vibrant, welcoming and rewarding experience for everyone.”

City Council President Rebecca Noecker, who represents the area, said the grocery store is the topic she hears most about from downtown constituents.

“This is a huge win for downtown St. Paul, and I think it’s a show of confidence on the part of a national retailer in our market and in our plans to revitalize downtown,” she said.

Aldi representatives did not immediately respond to a request for comment Feb. 23.

“We know that there are folks with a variety of income levels and needs living in downtown, and I believe Aldi is going to be better able to meet people at that full range of needs than what we had before,” Noecker said.

Aldi is in rapid growth mode, with plans to have more than 3,000 locations across the country by the end of 2028. The downtown store would be the retailer’s fifth in St. Paul.