Aldi acquires Winn-Dixie and Harveys Supermarkets from Southeastern Grocers
- Aldi will purchase approximately 400 Winn-Dixie and Harveys Supermarket stores as part of a larger divestiture of Southeastern Grocers.
- Aldi will also evaluate which locations will convert to the Aldi format, and which will continue to operate Winn-Dixie and Harveys Supermarket stores.
- Southeastern Grocers will divest its Fresco y Más banner to Fresco Retail Group LLC, an investment group strategically focused on food and grocery.
Aldi entered into a definitive agreement to acquire Winn-Dixie and Harveys Supermarket as part of a larger divestiture of Southeastern Grocers (SEG) to various entities. The deal is expected to close in the first half of 2024.
Under the proposed merger agreement, Aldi will acquire all outstanding SEG capital stock in an all-cash transaction, which encompasses all SEG grocery operations under the Winn-Dixie and Harveys Supermarket banners. This includes approximately 400 stores in Alabama, Georgia, Louisiana, Mississippi and Florida where 75% of the stores are located.
“Aldi’s intended acquisition of Southeastern Grocers' Winn-Dixie and Harveys Supermarket banners continues the trend of consolidation within the grocery sector of the retail industry,” Elizabeth Lafontaine, EnsembleIQ’s chief retail analyst, told Retail Leader. “Aldi’s continued growth in the U.S. grocery market highlights the focus on value by supermarket shoppers today, and the willingness of consumers to try new retailers that promise low prices, private label products and unique formats. The growth of big-box and discount retailers have put increased pressure on regional chains to find a competitive advantage and reach consumers in local markets, which continues to drive merger and acquisition activity in the sector. This continued flurry of consolidation is beneficial for thriving retailers, but decreased competition may limit consumer options.”
Following the completion of the sales process, Aldi will serve the customers and communities of Winn-Dixie and Harveys Supermarkets through the continued operation of the banners’ existing stores. The retailer will also evaluate which locations 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.
“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, Aldi’s CEO, said in a press release. “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 first established its presence in the Southeast in the mid-1990s and since has invested $2.5 billion in the region. Most recently, Aldi opened its 26th regional headquarters and distribution center in Loxley, Alabama, to help support new stores, with plans to open 20 new Aldi locations in the area by the end of the year.
“Aldi will operate Winn-Dixie and Harveys Supermarket stores with the same level of care and focus on quality and service, as we also evaluate which locations will convert to the Aldi format to better support the neighborhoods we’ll now have the privilege of serving,” Hart said. “For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores.”
Additionally, SEG has agreed to divest its Fresco y Más operations. SEG anticipates that the sale of the Fresco y Más banner will close in the first quarter of 2024. The Fresco y Más banner, including all 28 stores and four pharmacies, will be sold to Fresco Retail Group LLC, an investment group strategically focused on food and grocery. Fresco Retail Group plans for all stores and pharmacies in the Fresco y Más banner to continue operating as they are presently.
“Our successful transformational journey has created a unique opportunity with leading partners who share our vision and common commitments to creating value for their customers,” Anthony Hucker, SEG’s president and CEO, said in a press release. “We believe these next steps will fuel a phenomenal experience for our customers, new opportunities for our associates and increased value for our shareholders. As the sales processes proceed, we’ll stay acutely focused upon delivering the exceptional quality, service and value that our customers and communities have come to expect from us.”
SEG will continue to operate its banners and stores in the normal course of business up to and until the transactions are completed.