Oakdale Cub Foods to move to old Kmart site

The Oakdale Cub Foods is moving into the old Kmart space at the other end of Bergen Plaza, just south of 10th Street North and west of Interstate 694. The company is moving into the larger space to compete with the new Hy-Vee store across 10th Street. (Linda Baumeister/Review)
The Oakdale Cub Foods is moving into the old Kmart space at the other end of Bergen Plaza, just south of 10th Street North and west of Interstate 694. The company is moving into the larger space to compete with the new Hy-Vee store across 10th Street. (Linda Baumeister/Review)
In 2014 Cub Foods moved into a former Rainbow Foods in Oakdale, and made interior and exterior improvements. Now the store is on the move again, this time to an empty Kmart store. The new location is more than 23,000-square-feet larger than the current store. (Linda Baumeister/Review staff)
In 2014 Cub Foods moved into a former Rainbow Foods in Oakdale, and made interior and exterior improvements. Now the store is on the move again, this time to an empty Kmart store. The new location is more than 23,000-square-feet larger than the current store. (Linda Baumeister/Review staff)

Company seeks to remain competitive with new Hy-Vee

In an effort to keep pace with its competition, the Oakdale Cub Foods store will be moving into a larger space at the other end of Bergen Plaza, just across the street from the new, sprawling Hy-Vee complex.

Oakdale community development director Bob Streetar said Cub Foods' parent company, SuperValu Inc., has submitted building plans with the city to move into the former Kmart space, just south of 10th Street North and west of Interstate 694.

The large retail storefront has been empty since Kmart closed in September 2014.  

Requests for comment from Inland Real Estate Corporation, which owns Bergen Plaza, were not returned by the Review's deadline. But, Streetar said he has been in recent contact with Inland's vice president and senior leasing officer Rick Plessner, who said Cub Foods plans to open its doors in the Kmart location in March.

The new site will provide Cub with better visibility off I-694 and Tenth Street, and expand the store by over 23,000 square feet. According to leasing information on Inland's website, the old Kmart space has a total of 87,680 square feet -- for comparison, the new Hy-Vee grocery store is around 90,000 square feet.

Streetar said some improvements at the new Cub Foods site would include an architectural rehab of the building's interior, cosmetic improvements to the exterior, upgrading the surface parking lot and adding new landscaping.

Changing grocery marketplace

Streetar said he was not aware of what might eventually inhabit the 64,189-square-foot space currently occupied by Cub Foods.

Cub Foods took over that building last September, after Roundy's sold several of its Rainbow Foods stores, including the one located where Cub currently stands.

Milwaukee-based Roundy's shed 18 of its Twin Cities stores last summer. Company CEO Robert Mariano cited "the economic downturn over the last few years, coupled with an increased competitive footprint in the Minneapolis/St. Paul market" as reasons for the sales.

The Twin Cities is seen as a very competitive market for grocers, with big box retailers and chains like Target, Wal-Mart, Cub Foods, Lunds & Byerlys, Kowalski's and Aldi/Trader Joe's, and smaller stores all vying for their share of customers' food dollars.

While companies like Roundy's are pulling out of the Twin Cities market because of its heavy competition, Des Moines-based Hy-Vee sees economic opportunity, and intends to give well-established grocers a run for their money.

Hy-Vee opened its first two stores in the metro last month -- in Oakdale and New Hope -- and has ambitious plans for a total of 20 new stores in the next five years.

During a media tour of the Oakdale Hy-Vee store Sept. 21, Hy-Vee director of corporate communications Tara Deering-Hansen, said the company does not see itself in direct competition with any single retailer.

"The goal is to offer fresh, quality products and a variety of services for every type of customer," she said.

Joshua Nielsen can be reached at jnielsen@lillienews.com or 651-748-7822.

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