Aldi in Iowa City to relocate to bigger store near Highway 1

Construction has begun for Iowa City's new Aldi grocery store  at 760 Ruppert Road near Highway 1.

Heather Moore, Dwight division vice president for Aldi, said the store's current location along Gilbert Street has been open since 1985 and it was time to update the store.

The new store, expected to open by the end of January 2014, will have an expanded produce section, wine selection, and with 1,000 square feet more than the existing location , more space. The store will also utilize energy efficient lighting and refrigeration.

“It's just going to be an easier shopping experience for our customers,” Moore said.

The new location is close to an existing Walmart Supercenter, another store that boasts affordability for customers. Moore said she recognizes customers shop at multiple stores and the proximity will be a convenience for customers and not a concern to Aldi officials.

“We relocate our stores where there's a large amount of traffic,” Moore said. “That location in Iowa City makes perfect sense.”

Aldi shopper Lauren Johnson said he looks forward to the move.

“It'll be about the same,” the 80-year-old said of his shopping experience once the new location opens. “It'll be a bit farther, but it'll be a bigger store with more things.”

Jeff Davidson, Iowa City's director of planning and community development, said visibility and traffic counts play significant roles in helping businesses decide where to locate.

He said redevelopment has grown as more stores, restaurants, and auto dealerships continue to pop up in the area.

“The Highway 1 area has been kind of slow and steady in terms of redevelopment,” he said. “The Wal-Mart  is a huge catalyst for things out there and it has obviously influenced a lot of decisions.”

The soon-to-be-vacated Aldi store joins empty buildings that once housed Office Depot and Blockbuster. Both closed earlier this year following national cutbacks.

Moore said Aldi is hoping to sell the existing space once the new location is open and while there have been a few interested parties, there's nothing she's ready to make public.

Davidson said the area Aldi is leaving behind is one that will likely see growth in the coming years, as a new school is built that will likely spur more residential growth and more demand for stores.

"That's a very important area to us in terms of commercial development," he said. "As it evolves over time we (the city) need to make sure it stays viable."

The area is an urban renewal area, which means tax increment financing is an available tool that could be used to help business owners.

However in the meantime, Aldi shopper Greg Connay said without a car, he'll likely switch to the Hy-Vee located on Waterfront Drive.

“It would definitely cost me more because it'll be farther away from where I live,” Conway said.