Aldi to Open in Downtown St. Paul at Former Lunds & Byerlys Location
Downtown St. Paul is finally getting a grocery store back. Aldi has applied for permits to remodel the former Lunds & Byerlys space at The Penfield, located at East 10th Street and Robert Street in the heart of downtown.
Remodel work is scheduled to begin March 16 and continue through June 22, 2026. If construction stays on track, the new Aldi location could open by summer.
Nearly a Year Without a Grocery Store
When Lunds & Byerlys closed in March 2025, downtown St. Paul lost its only full service grocery store. The closure followed reduced hours and operational adjustments as commuter traffic remained below pre pandemic levels.
For downtown residents, this created a major convenience gap. For city leaders, it represented a larger challenge tied to office vacancies, retail demand shifts, and urban core reinvention.
Access to a grocery store is one of the most important amenities for attracting long term residents. Without it, residential growth becomes much harder.
Why Aldi Matters for Downtown Revitalization
Aldi is known for its discount pricing model and efficient store layouts. The company is currently expanding nationwide, with plans to exceed 3,000 U.S. stores by 2028. This would become Aldi’s fifth location in St. Paul.
City officials have emphasized that replacing the grocery store was a priority within broader downtown revitalization plans. The Penfield building, originally developed with city support, was designed to combine market rate housing with ground floor retail.
The addition of Aldi supports:
• Downtown housing growth
• Walkability and daily convenience
• Retail confidence in the urban core
Momentum on This Block
This announcement follows other recent investments nearby. Pedro Park reopened after a major renovation that added a playground, dog run, and event pavilion. Robert Street reconstruction is also nearing completion.
Together, these public and private investments suggest renewed focus on strengthening downtown St. Paul as a residential destination.
If you are considering buying or selling property in downtown St. Paul or anywhere in the Twin Cities, neighborhood amenities like grocery stores significantly impact long term value.
Reach out anytime for local insight on the St. Paul or Minneapolis housing market.
