A full-service grocery store is set to return to downtown St. Paul after nearly a yearlong absence, with discount grocer ALDI planning to move into the former Lunds & Byerlys space at the Penfield.

Ward 2 Council President Rebecca Noecker announced the development in a video posted to social media, calling the project a long-awaited milestone for downtown residents and workers.

“I know this has been something that so many of you have been asking me about,” Noecker said. “We’ve all been missing our downtown grocery store.”

According to the Star Tribune, ALDI has filed permits to renovate the former Lunds space at 115 E. 10th St.. Building permit applications indicate construction is expected to begin in mid-March — with one filing listing March 16 — and continue through late June.

The Lunds & Byerlys store closed March 26, 2025, leaving downtown without a walkable full-service grocery option. The grocer cited unsustainable operating costs, staffing shortages and security concerns, including shoplifting and vandalism, as reasons for the closure. The store had opened in 2014 as part of the Penfield, a 10-story mixed-use development viewed at the time as a catalyst for downtown revitalization.

City officials say the return of a grocery tenant is critical infrastructure for downtown’s recovery.

“A downtown grocery store is a key piece of infrastructure for our neighborhood’s vitality,” Noecker’s Legislative Aide Megan Jekot said in an email. “With ALDI coming to the former Lunds space, downtown will once again have a grocery store within walking distance.”

Noecker said the discount chain’s pricing and product mix make it a strong fit for the neighborhood. She also framed the announcement as part of a broader wave of downtown improvements, including the reconstructed Robert Street corridor, expanded transit access and investments in nearby Pedro Park.

The absence of a grocery store has been a persistent concern for downtown residents since the 2025 closure, particularly for those without easy access to transportation. City leaders said they heard frequent requests for a replacement during the past year.

ALDI’s arrival is expected to restore everyday grocery access while building on the existing infrastructure of the former store. Officials said additional details about the opening timeline will be shared as renovations progress.

For now, city leaders are emphasizing the symbolic and practical significance of the move.

“This is a win for downtown St. Paul,” Jekot said, “and we’re moving forward together.”