German supermarket chain Aldi has announced its plans to acquire Southeastern Grocers’ Winn-Dixie and Harveys Supermarket stores in a major acquisition. The deal includes approximately 400 stores across five states in the southeast U.S. – Florida, Alabama, Georgia, Louisiana, and Mississippi. The financial details of the sale have not been disclosed.
Aldi stated that it will evaluate which stores will be converted into Aldi locations, while others will continue to operate under the Winn-Dixie and Harveys Supermarket brands. The acquisition is expected to be completed in the first half of 2024.
Aldi’s CEO, Jason Hart, expressed his excitement about the expansion and its contribution to the company’s long-term growth strategy. He stated, “The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills.” Aldi plans to add 120 new stores nationwide this year, reaching a total of more than 2,400 stores by the end of the year.
Aldi has been named the fastest-growing grocer in the nation, with a particular focus on the Gulf Coast region. According to commercial real estate firm JLL, Aldi experienced significant growth last year amidst high inflation that affected consumer spending. In contrast, Publix remains a dominant presence in Florida. Although Aldi is the fourth-most popular grocery chain in the state with 43 million visits, Publix leads with over 600 million visits, according to JLL.
The acquisition of Winn-Dixie by Aldi is significant as Winn-Dixie is the second-most visited grocery chain in Florida. Southeastern Grocers, the Jacksonville-based company that owns Winn-Dixie, has faced challenges in recent years. It filed for bankruptcy in 2018 and had to close nearly 100 stores for restructuring. In 2021, Southeastern Grocers attempted to go public but later withdrew its plans.
In addition to Aldi’s acquisition of Winn-Dixie and Harveys Supermarket stores, another deal is taking place to divest the 28 Fresco y Más stores, which cater to Florida’s Hispanic and Caribbean communities. The stores will be placed under Fresco Retail Group, LLC, an investment group focusing on food and retail.
The CEO of Southeastern Grocers, Anthony Hucker, expressed confidence in the company’s transformational journey and its partnership with Aldi. He believes that the next steps will provide a great experience for customers, new opportunities for employees, and increased value for shareholders.
The acquisition of Winn-Dixie and Harveys Supermarket stores by Aldi marks a significant expansion for the German supermarket chain in the southeast U.S. region, solidifying its position as a major player in the grocery industry.