Struggling north Minneapolis grocer North Market to close; relaunch planned for 2026

The nonprofit grocery store opened in 2017 to serve a neighborhood deemed a food desert.

The Minnesota Star Tribune
December 26, 2025 at 10:40PM
North Market opened in Webber-Camden in 2017. (Shari L. Gross/The Minnesota Star Tribune)

Facing financial challenges, the north Minneapolis grocer North Market will close in February and relaunch later in the year.

Pillsbury United Communities, the store’s nonprofit owner, announced last week it plans to tweak the store’s model and reopen in the second half of 2026.

“The grocery industry operates on extremely thin margins‚" Anthony Washington, the interim president and CEO of Pillsbury United Communities, said in a statement. “Without the scale and purchasing leverage of large chains, North Market was unable to operate as a self-sustaining enterprise.”

North Market, one of few full-service grocery stores on the city’s north side, opened in Webber-Camden in 2017. It was billed as a community-oriented solution to the lack of grocers in the neighborhood, which was deemed a “food desert.”

Access to food remains a major challenge in neighborhoods across the Twin Cities and the country.

This year, several Minneapolis elected officials joined leaders in other cities to call on local governments to step in. Minneapolis’ amended city budget for 2026 includes $200,000 in one-time funding toward the development of a potentially city-owned grocery store in a food-insecure neighborhood.

Washington cited rising costs, fluctuating philanthropic dollars and inflation as causes for the North Market closure. The store relied on philanthropy for 30% of its funding, according to a July report on municipal grocers from the city.

North Market, located at 4414 Humboldt Av. N., could not continue covering ongoing financial losses.

“Pausing now gives us the space to plan carefully, work with community and partners and build a model that can last,” the store said on Facebook.

North Market will operate with reduced hours — 11 a.m. to 7 p.m. — between Jan. 4 and Jan. 31. It will close Feb. 1.

Employees will be laid off and eligible for rehire within Pillsbury United.

The organization said “North Market 2.0″ will open in the second half of 2026. It will partner with Youthprise, Second Harvest Heartland, Wendy’s House of SOUL and Houston White. Pillsbury United Communities said it is also exploring a partnership with Hennepin County.

The nonprofit plans to hold community conversations about the transition in February.

Susan Du of the Minnesota Star Tribune contributed to this story.

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Greta Kaul

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Greta Kaul is the Star Tribune’s built environment reporter.

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Shari L. Gross/The Minnesota Star Tribune

The nonprofit grocery store opened in 2017 to serve a neighborhood deemed a food desert.

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