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After Aldi exit, new grocery store set to open in North Minneapolis

The locally-owned Colonial Market will open by December in the former Aldi on Penn Avenue in north Minneapolis.

MINNEAPOLIS, Minnesota — For a year and a half, the building on 3120 Penn Avenue North has set empty. 

In February 2023, Aldi left the northside — leaving a food desert in its place. 

"There are a few things that every neighborhood needs. You need a school; you need a park or a recreation center... you need a grocery store. And for more than a year now, this community here on the northside has largely been without a grocery store after the ALDI closed," Minneapolis Mayor Jacob Frey said. 

"I just remember us having conversations after we found out Aldi was going to close and just feeling like, what's next? How can we ensure that people don't go deeper into a food desert?" said Minneapolis City Council Member LaTrisha Vetaw. 

Mayor Frey said since Aldi's abrupt exit, the city has been working to find a new grocer for the space. 

Now Daniel Hernandez, owner of Colonial Market, and developer Wellington Management are teaming up. They announced their plans during a press conference inside the building on Tuesday morning. 

"It's for the whole community as a whole here in North Minneapolis," Hernandez said. 

Hernandez owns the Colonial Market on Nicollet Avenue in south Minneapolis and another south Minneapolis grocery store. This year, Hernandez will open two Colonial Market locations — another in south at the Hi-Lake Shopping Center in September and the north Minneapolis one in the beginning of December. 

"One of the things that we really specialize in is fresh fruit, and vegetables, and meat. So I believe that our northside here is in great need of food and we are going to deliver one of the best foods in in the nation. Because we buy Grade A, which is the best grade there is for food, for the same price as any other other grocery store," Hernandez said. 

Hernandez said he is also committed to hiring local, with 40 jobs to fill. 

"They're also going to help build community, making sure that the investment is returned to this northside community," Frey said. "That we're not shipping profits overseas, but they'll end up right here in Minnesota." 

Besides selling groceries, Colonial Market will include a restaurant, ice cream shop and butcher shop. 

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