Aldi no-frills grocery chain plans Goodyear distribution center — could Arizona stores follow?

Laura Gómez
The Republic | azcentral.com
A customer approaches the entrance of an Aldi food market, in East Rutherford, N.J., in this May 31, 2017, photo. The discount grocery retailer is opening a regional office and distribution center in Gilbert, and Arizona stores are expected to follow.

Aldi, a discount grocery chain that is popular throughout the Midwest and eastern U.S., will lay stakes in Arizona, along the growing Loop 303 industrial corridor in Goodyear.  

The company recently entered an agreement with Goodyear to open a regional office and distribution center and create 132 jobs in its first six years of operations.

Aldi is in the process of buying city-owned and private land on Indian School Road and Cotton Lane, a lot commonly known as the Duncan Farms.

The move to open a distribution center in the West Valley signals a possibility that the first Aldi grocery stores could come to the Phoenix area, but a company spokeswoman said information on potential store locations was unavailable.

"The company is currently exploring opportunities in Arizona as well as multiple other markets from coast to coast," spokeswoman Nisa Kiang said. "We look forward to sharing news as plans are solidified."   

Earlier this year, the company announced plans to open another 900 stores in the U.S. by 2022.

What is Aldi?

Aldi got its start in Germany in 1961 and opened its first U.S. store in Iowa in 1976. Today, U.S. operations are based in Illinois with nearly 1,700 stores in 35 states.

Aldi stores are smaller than typical supermarkets and more than 90 percent of its products are Aldi exclusive brands.

The no-frills shopping experience is billed as a way to pass savings on to shoppers. Customers bring their own bags, or purchase bags from the store. And they bag their own groceries too.

Need a cart? Customers insert a quarter to get a cart and get it back when they return the cart to the corral.  

More on Goodyear facility

Operations at the Goodyear distribution center and regional offices are expected to begin by 2020, but the timeline could change, said Michelle Lawrie, director of economic development in Goodyear.

The sale of the land is in escrow and is expected to close by the end of the year, Lawrie said.

Goodyear is selling Aldi approximately 27 acres for $3.6 million and Sunbelt Holdings, a real-estate developer, will sell another 42 acres to the grocery store chain, according to a city document.

Goodyear will spend up to $2.8 million on street improvements and to install stormwater drainage and a retention basin along Indian School Road and Cotton Lane.

To lure the company, Goodyear agreed to waive up to $285,000 in plan review and permit fees and support Aldi's application for Foreign Trade Zone designation, which must go to the U.S. Department of Commerce for approval. 

Companies operating within a Foreign Trade Zone save up to 72 percent on property taxes. Aldi could save about $10 million in property taxes over a 10-year period if the Foreign Trade Zone designation is approved, Lawrie said.

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