The closure of Lunds & Byerlys in downtown St. Paul is the latest sign of economic distress in the Twin Cities. After operating for more than a decade at 115 E. 10th Street, the popular grocery chain announced that the store would be shutting its doors permanently. This decision has left many downtown residents concerned about food access, as well as the broader economic challenges facing businesses in the area.
Economic Struggles Leading to Closure
Lunds & Byerlys cited declining foot traffic, financial difficulties, and labor shortages as major reasons for closing the location. Since the pandemic, many downtown businesses have struggled to recover, with office workers shifting to hybrid or fully remote work, resulting in decreased demand for nearby grocery and retail stores.
The economic downturn has not been exclusive to St. Paul. A rising cost of goods, combined with inflation and reduced consumer spending, has impacted grocery stores nationwide. While some locations have managed to remain profitable, urban stores that rely heavily on office workers and downtown residents have been hit particularly hard.
According to a report from the Minnesota Department of Employment and Economic Development (DEED), business closures in downtown areas have increased significantly over the past two years. With commercial real estate vacancies rising and local purchasing power decreasing, many businesses are struggling to justify keeping locations open.
Impact on Residents and Workers
The closure of Lunds & Byerlys is a major blow to local residents who depended on the store for groceries and essential goods. While alternative options exist, they are not nearly as convenient. Many downtown St. Paul residents rely on public transportation, and without a nearby grocery store, they will be forced to travel further for fresh food.
For the employees of the downtown Lunds & Byerlys location, the closure also means job losses and financial insecurity. While some workers may be offered positions at other locations, others may struggle to find employment in a retail sector that is seeing cutbacks across the board.
Local advocacy groups, including The Food Group and Second Harvest Heartland, have already started discussing ways to support residents who will be affected by this closure. However, these efforts are limited in scope compared to the convenience of having a full-service grocery store downtown.
A Symptom of a Larger Economic Problem
This closure is not an isolated incident. Across the U.S., grocery stores in downtown areas have been shutting down due to economic challenges, safety concerns, and shifting consumer habits. Even major retailers like Target and Walgreens have closed urban locations recently, citing similar issues.
According to Axios Twin Cities, businesses in both Minneapolis and St. Paul are struggling with a combination of declining sales and increasing costs, making it difficult to sustain urban locations. If the trend continues, downtown St. Paul could see further store closures, leading to a significant retail desert.
What’s Next for Downtown St. Paul?
City officials and business leaders are now working to attract new grocery stores and retailers to replace Lunds & Byerlys. However, without addressing the broader economic challenges—such as lack of downtown foot traffic, rising operational costs, and public safety concerns—new businesses may be hesitant to invest.
As St. Paul looks for solutions, residents will have to adjust to a new reality where convenient grocery shopping is no longer guaranteed. Whether another grocery chain will step in remains uncertain, but one thing is clear: without major economic improvements, more closures may follow.
