Aldi to Buy 400 Winn-Dixie, Harveys Stores in Southern US
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Discount grocer Aldi said Aug. 16 it plans to buy 400 Winn-Dixie and Harveys supermarkets in the southern U.S.
Under a proposed merger agreement, Aldi will acquire all outstanding shares of Jacksonville, Fla.-based Southeastern Grocers Inc., the parent company of Winn-Dixie and Harveys. If the deal is approved by regulators, it’s expected to close in the first half of 2024.
Financial terms of the deal weren’t disclosed. Both Southeastern Grocers and Aldi are private companies. Aldi is based in Germany with a U.S. headquarters in Batavia, Ill.
Aldi said the deal supports its long-term growth strategy in the U.S., where it expects to have 2,400 stores by the end of this year. The Winn-Dixie and Harveys supermarkets it’s acquiring are primarily in Alabama, Florida, Georgia, Louisiana and Mississippi.
Aldi said it will convert some locations to its own brand and format, which cuts costs with features like lean inventories and self-bagging. But it will operate some stores under the Winn-Dixie and Harveys brands.
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The deal comes amid wider consolidation in the grocery industry as customers increasingly defect to big-box stores like Walmart, which controls more than 20% of U.S. grocery sales. Last fall, Kroger and Albertsons — two of the largest U.S. grocery chains — announced plans to merge in a $20 billion deal. Regulators are reviewing that plan now; if it’s approved, it is expected to close early next year. Kroger and Albertsons rank No. 25 and No. 40, respectively, on the Transport Topics Top 100 list of the largest private carriers in North America, and No. 3 and No. 5 respectively on the list of top grocers. Walmart Inc. ranks No. 2 on the TT Top 100 list of private carriers.
Southeastern Grocers also plans to sell its 28 Fresco y Mas stores to Fresco Retail Group, an investment company, which will continue to operate them under the same brand.
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