Aldi replaces planned Staples in Edgewater

By Samantha Sleevi, March 05, 2009

(Crain’s) — Discount grocer Aldi Inc. plans to open a store in a new condominium development in Edgewater after office supply retailer Staples Inc. backed out of the project.

A spokeswoman for Aldi, which is based in west suburban Batavia, says the Edgewater store is to open in May at Broadway Street and Granville Avenue and is one of six new Aldis scheduled to open in the Chicago area this year. Two more are in the city, in the Avondale and Auburn Gresham neighborhoods, and the others are in west suburban Harwood Heights, south suburban Orland Hills and far southwest suburban Plainfield.

The planned openings come at a time when few retailers are expanding due to the recession and a steep pullback in consumer spending. But grocery chains, particularly value-focused stores like Aldi, tend to fare better than other retailers in such markets, says Peter Graham, a vice-president with CB Richard Ellis Inc., who represented the Edgewater landlord.

“It’s needs vs. wants,” Mr. Graham says. “People can do without fancy shoes for a while, but they have to eat.”

Aldi has signed a 15-year lease for the Edgewater development, called the Clarovista, and is to occupy about 15,600 square feet, roughly half of the retail space in the 160-unit condo building, which is a development of Chicago-based Access Realty Group Inc. Access president William Platt says he is currently in talks with potential tenants for the remainder of the retail space.

Mr. Graham says Framingham, Mass.-based Staples was previously slated for the space but terminated its lease due to a delay in the project. The 12-story Clarovista had its grand opening for residents in late January and is currently selling units.

Aldi, which has more than 100 stores in the Chicago area and almost 1,000 nationwide, plans to open about 75 stores this year, including its first one in New York City. The company is part of the massive Aldi Group grocery chain based in Essen, Germany.

The other five Chicago-area Aldis to open this year are at:

• Belmont and Kimball avenues, Chicago
• 7627 S. Ashland Ave. Chicago
• 4725 N. Harlem Ave., Harwood Heights
• 9271 W. 159th St., Orland Hills
• 2450 Ridge Road, Plainfield