Economic development specialist’s persistence pays off in recruiting discount grocer

When are we going to get an Aldi store?

That is the No. 1 question Craig Armstrong has always been asked. Whether he is at the supermarket or walking his dog, he can’t escape it. As economic development specialist for the City of Newton, he is certainly the right person to ask. His answer, up until this past year, was always: “I’m working on it.”

Within the next few days, the Newton Aldi will be open for business and offer customers another option to buy their groceries. Armstrong said this economic development project did not happen overnight. It took six years of patience and persistence, but it paid off. Now, Armstrong has a different answer to give.

“Once I got the green light from corporate, then it was OK to say, ‘They’re coming,’” Armstrong said. “It was a matter of knowing that this was the right marketplace for Aldi and that they would do well here and then demonstrating that to them in a compelling way over time paid results.”

Newton has had an Aldi in the past. It was located where the Jasper County Community Center stands today. Armstrong said when he moved to Newton in 2006 to be general manager at Iowa Speedway, the store was still operational for the first few months he was in town. He even shopped there a few times.

However, the store would eventually close, and a number of the portable freezers and refrigerators were purchased by the Iowa Speedway for its concession stands. The town has been without an Aldi for the past 18 years and relied on places like Hy-Vee, Fareway and Walmart and a few other places for groceries.

Getting an Aldi back in Newton took six years of persistent discussions with the city. Armstrong fought like hell to recruit the grocery store. He made it his mission to bring the company back to Newton. Demographically speaking, Armstrong said it was the perfect time for the store to offer its value-priced products.

“It’s an opportunity for them to move back in to a market that would be very much appreciative of that,” Armstrong said. “But it wasn’t an easy deal. This was six years of work. Initially it was just conversations with their real estate brokers who were looking for new territory.”

In March 2024, CNN Business reported that Aldi would open 800 new locations in the United States as part of its $9 billion expansion plan. This comes at a time when shoppers have become burdened by higher food prices from other grocery stores. Aldi has always maintained its status as a discount grocer.

Armstrong said Aldi has also moved into very important markets in Central Iowa. When he saw this happening, he was on the phone trying to make the same thing happen for Newton. Acquiring Aldi was a long-term process, and it took a few rejections before the city was considered.

“Eventually we moved to the top of the list and it was go time,” he said. “Then it was finding the right pieces of land, which we assisted them in identifying.”

The new Aldi is located on the 300 block of Iowa Speedway Drive across the street from the local Walmart, which probably isn’t an accident. Several Aldi stores are built in areas of high traffic or even directly across the street or adjacent to a Walmart, like in Altoona for instance.

“It was an ideal location for them,” Armstrong said. “They were able to put together a workable deal with the landowners at that time. They set about getting this all organized and developed and went through the process. They were easy to work with from the city’s perspective, and I think they would also agree.”

Armstrong couldn’t be happier to see Aldi making an investment in Newton. He said the presence of another grocer will naturally create competition, which is good for consumers and for businesses. Armstrong suggested the addition of Aldi likely led to the recent renovations and improvements at the nearby Walmart.

Knowing a competitor was moving in across the street, the store made massive improvements to its crumbling parking lot and completed interior renovations. They even threw in another Newton-inspired mural that features the town’s two unique movie theaters. Armstrong said these are great additions for consumers.

“They’re going have a very strong competitor in Aldi,” he said. “We welcome them to the market. This is benefiting the community. This is benefitting our citizens. When you look at this, it’s not an either-or situation. It’s going to be drawing more people in Jasper County and surrounding counties and drawing more trade at Aldi or Walmart.”

Activity breeds activity, he added. Which is particularly important for this area along Iowa Speedway Drive that has already seen success with the newly expanded and relocated Theisen’s. While Armstrong could not say for certain, he does foresee potential for further economic development in this part of town.

“When you’re drawing people, obviously that is what retailers want,” he said. “It’s where people are gathering when they are in an area when they’re coming from somewhere. That will definitely increase the number of folks coming off the Interstate and those who are traveling to Newton on U.S. Route 6 or First Avenue.”

Construction has progressed significantly over the past few months. Originally, Aldi hoped for a completion date slightly before Thanksgiving. Supply chain issues delayed those plans. Still, the store s able to open before Christmas. Armstrong said “kudos to them and hooray for us” who benefit from the opening.

“It feels good to know that six years worth of effort of really recruiting and making an effort to paint our community in the best light and really the light of reality,” he said. “Evidence defeats objections. And that’s what we did. We kept working at it until it become a reality. When it did, then there was great excitement.”