ALDI U.S. is planning to build a new regional headquarters and distribution center in Loxley, a major logistics investment that officials say will bring roughly $100 million in capital spending and about 200 jobs to Baldwin County.
The discount grocery chain has purchased 148.69 acres of land north of Exit 44 on Interstate 10 for the project, paying $3,345,525, or roughly $22,500 per acre, according to Joey Betbeze, who represented the sellers of the property. The site sits along one of the busiest highway corridors on the Gulf Coast, giving ALDI easy access to interstate shipping lanes for the stores it plans to supply throughout the region.
Plans call for a 564,000-square-foot facility, with construction expected to begin in early 2021. Once complete, the distribution hub will serve as both a regional headquarters and a supply base for new ALDI stores opening across southern Alabama, Louisiana and the Florida Panhandle.
Gov. Kay Ivey welcomed the announcement, saying the state is eager to see ALDI grow its footprint in Alabama. “We’re proud to stand behind ALDI’s commitment to bringing value to the people of Alabama and the Gulf Coast region, and we welcome the company’s plans for a regional headquarters and distribution hub in Loxley that will create jobs for our hard working citizens,” Ivey said.
ALDI has operated in the state for years, with 30 stores currently open across Alabama, but the company’s presence along the coast has been limited. It has already purchased smaller parcels of land in Fairhope, Spanish Fort and Foley in recent years, though those properties have not yet been developed. The Loxley project marks the company’s first major infrastructure investment in Baldwin County and signals an aggressive push into the southern part of the state.
“We are ready to bring the ALDI difference to new markets in Alabama, like Baldwin County,” said Dan Gavin, ALDI’s vice president of real estate. “We’re ramping up our expansion plans to meet the growing demand along the Gulf Coast.”
ALDI built its reputation on a no-frills, value-focused shopping model, selling most of its merchandise under store brands and often straight from the shipping pallet to keep overhead and prices low. The company has used that model to expand rapidly across the country, and officials say it is on pace to become the third-largest grocery retailer in the United States by store count by the end of 2022. Nationally, ALDI has said it intends to open 70 new stores by the end of the year as part of that broader growth strategy.
For Loxley, the project is the biggest development the town has seen since ACE Hardware built a distribution center just north of Interstate 10 in 1999. That facility has grown to employ roughly 250 people, and local leaders hope the ALDI project will have a similar long-term impact on the local job market.
“We are proud that ALDI has selected Loxley for this monumental investment,” said Loxley Mayor Richard Teal. “Bringing a regional headquarters is great for Loxley, Baldwin County and Alabama.”
County leaders echoed that sentiment, framing the project as another sign of Baldwin County’s growing appeal to major employers and logistics companies. “ALDI’s new regional headquarters and distribution center will create new job opportunities for the Baldwin County workforce and contribute to our economy,” said Jeb Ball, chair of the Baldwin County Commission’s economic development efforts. “ALDI’s growth and success will contribute to overall economic health and help meet the needs of our growing population. We welcome them to Baldwin County.”
The Baldwin County Economic Development Alliance, which helped facilitate the deal, said the project fits a broader pattern of industrial and logistics investment moving into the county as its population continues to grow and its highway access becomes an increasingly attractive selling point for large employers.
Once operational, the Loxley facility is expected to serve as a launch pad for dozens of new ALDI locations across the region in the years ahead. Company officials have said they expect the distribution center and the stores it supports to begin operations by the end of 2022.