Aldi to Acquire Southeastern Grocers' Winn-Dixie, Harveys Supermarket Banners
Discount grocer Aldi is expanding its presence in the southeastern United States with the acquisition of the Winn-Dixie and Harveys Supermarket banners from Southeastern Grocers (SEG).
The major acquisition includes approximately 400 Winn-Dixie and Harveys Supermarket locations across Alabama, Florida, Georgia, Louisiana and Mississippi, and signals a major divestment from SEG. The transaction is expected to close in the first half of 2024, subject to regulatory approval and other customary closing conditions.
Illinois-based Aldi has been one of the fastest growing retailers in the country, attracting customers during the current inflation period with its discount prices. At the start of the year, Aldi opened a new regional headquarters and distribution center in Loxley, Ala. that has the capacity to serve as many as 100 stores in the Gulf Coast region. The acquisition from SEG builds on Aldi’s plan to open 120 new locations across the country by year's end.
“Like Aldi, Winn-Dixie and Harveys Supermarket have long histories and many loyal customers in the Southeast and we look forward to serving them in the years to come,” said Jason Hart, CEO of Aldi. “The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills. The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach a total of more than 2,400 stores by year-end.”
Aldi will continue operations of the banners’ existing stores, while evaluating which locations it will convert to the Aldi format. For those stores that are not converted, Aldi intends for them to continue to operate as Winn-Dixie and Harveys Supermarket stores.
“This merger agreement is a testament to our successful transformational journey and the tireless work of our dedicated associates who serve our communities,” said Anthony Hucker, President and CEO, Southeastern Grocers. “Aldi shares our vision to provide exceptional quality, service and value - and this unique opportunity will evolve our business to benefit our customers, associates and neighbors throughout the Southeast.”
In addition to agreeing to sell its Winn-Dixie and Harveys Supermarket banners, SEG also announced plans to divest its Fresco y Más operations, which include 28 stores and four pharmacies, to the Fresco Retail Group, LLC investment group. That sale is expected to be consummated in the first quarter of 2024 with all stores and pharmacies in the Fresco y Más banner to continue operating as they are presently.
Late last year, SEG was reportedly in talks with prospective buyers on the heels of the Kroger and Albertsons merger announcement.
Currently, Aldi operates 2,200 stores in 38 states, while SEG operates more than 420 grocery stores, approximately 180 liquor stores and more than 230 in-store pharmacies in five states.