Why Whole Foods, Aldi and Trader Joe’s Expanded in Chicago

Chicago’s grocery wars are back on, and this time it’s landlords who are the early winners.

A fresh wave of leasing activity is sweeping the city as national grocers ramp up expansion plans, fueled by stronger at-home dining trends and the collapse of the $24.6 billion Kroger-Albertsons merger that had frozen much of the sector’s dealmaking, according to Crain’s.

With that regulatory uncertainty lifted, chains are moving quickly to lock up sites.

Whole Foods is going forward with a new store in Wicker Park at RDM Companies’ property on 1200 North Ashland Avenue, as well as repurposing a landmarked former bank building owned by John McLinden’s Hubbard Street Group at 827 West Belmont Avenue in Lakeview for another storefront. Trader Joe’s filed permits for storefronts in LG Group’s planned development at 170 North May Street in Fulton Market, as well as in Uptown and North Park. Aldi is adding stores at PGIM Real Estate’s Roosevelt Collection property in the South Loop, as well as at a West Loop site where Mavrek Development plans to build a 380-unit apartment building; those Aldi storefronts follow the brand’s recent openings in River North and suburban Chicago Ridge.

Nationally, grocery chains are planning nearly 21 million square feet of new stores in 2026, according to CBRE, as rising foot traffic and steady sales give operators fresh capital to deploy.

That momentum has been building since the pandemic, when grocery sales surged as restaurants shuttered. Even as dining options normalized, consumers have continued to favor eating at home, particularly as restaurant prices have outpaced grocery inflation over the past decade, the outlet reported.

In Chicago, the failed Kroger-Albertsons deal added another catalyst. That proposed merger — which would have combined the parent companies of Mariano’s and Jewel-Osco — had put competitors in a holding pattern as they waited to see how market share might shift. The merger collapsed in late 2024, reopening the playing field.

Chicagoland grocery spending growth cooled to just 0.8 percent in 2025, down sharply from the prior year, as inflation stabilized. John Melaniphy of Melaniphy & Associates, told the outlet that all of the grocers making moves in the Chicago area are trying to grow larger to compete for more market share, and those growth plans were paused while waiting to see the outcome of the Kroger-Albertsons merger.

More second-generation space is also hitting the market as some Mariano’s and Jewel-Osco spots are marketed for lease. Shoppers are also becoming less loyal to single brands, according to the publication, instead toggling between stores based on price, quality and convenience.

— Eric Weilbacher