Report: Southeastern Grocer may be on brink of financial distress
Southeastern Grocer LLC’s impending closures of multiple stores across its seven-state footprint and its reported layoffs of store-level personnel may indicate a company on the brink of financial distress as it tries to cope with a crowded competitive landscape and its own inadequate resources, according to longtime industry observer Burt Flickinger, of New York-based Strategic Resource Group.
Among the winners Flickinger identified in Southeastern Grocers’ market are Walmart, whose current team, led by President and CEO Doug McMillon and Walmart U.S. President and CEO Greg Foran, has negotiated significantly lower pricing in Florida; Aldi, which has undertaken an aggressive program of expansion ahead of the entry into the region of its European hard-discount rival Lidl; and BJ’s Wholesale Club, which has experienced "sensationally successful" sales growth in the area. Add to that the strong competition offered by powerhouses Publix and The Kroger Co., a newly merged Ahold Delhaize that has regained its footing, and the rising threat of c-stores and dollar stores, and “there’s nowhere for Southeastern Grocers to source volume from,” noted Flickinger, as suppliers naturally prefer to invest with growing retailers.
For more, read the entire story, Southeastern Grocers Could be Facing Worst of Times, in our sister publication, Progressive Grocer.
In February, Southeastern Grocers, which operates BI-LO, Fresco y Más, Harveys and Winn-Dixie stores, announced a major transformation of its private brands, which will span approximately 3,000 items across all categories throughout each banner-specific store throughout 2017.