Aldi Expands in Southeast with Acquisition of Winn-Dixie and Other Grocery Stores
New York – Grocery shoppers in the Southeast can expect to see more Aldi stores starting in 2024. The German supermarket giant announced on Wednesday that it is acquiring Winn-Dixie and other grocery stores in the Southeast to increase its presence in the region.
Aldi will be acquiring nearly 400 Winn-Dixie locations, some of which will retain the familiar red-and-white Winn-Dixie branding and store layout, while others will convert to Aldi’s brand and bare-bones store format. The acquisition will add locations across Alabama, Florida, Georgia, Louisiana, and Mississippi to Aldi’s portfolio, with nearly 300 of these stores based in Florida. The transaction, which also includes Harvey’s Supermarket, is pending regulatory approval and is expected to close in the first half of 2024.
This move is part of Aldi’s plan to expand across the US, with a goal of opening 120 new stores and reaching 2,400 stores by the end of 2024. Aldi has been successful in providing cheaper options to customers during a period of inflated food prices.
Winn-Dixie and Harvey’s Supermarket have long been staples in the Southeast region, but both have faced financial difficulties in recent years. Winn-Dixie closed a third of its 900 stores in 2005 and laid off almost 30% of its staff. In 2018, Southeastern Grocers, the parent company of Winn-Dixie, announced plans to file for bankruptcy and close 94 stores.
Under the agreement, Aldi will buy all of the capital stock of the Florida-based company in cash. Aldi also plans to open 20 new locations in the Southeast region by the end of this year ahead of the closing of the acquisition.
CEO Jason Hart stated, “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.”
Aldi’s acquisition of Winn-Dixie and Harvey’s Supermarket will not only increase its presence in the Southeast but also provide the opportunity to evaluate which locations will convert to the Aldi format, ensuring quality and service for the neighborhoods they will serve.
In addition to Aldi’s acquisition, Southeastern Grocers has agreed to sell its 28 Fresco y Más stores to Fresco Retail Group, a grocery investment group. The Hispanic grocery chain will retain its name.
With this latest expansion, Aldi is aiming to bring its affordable grocery options to more customers in the Southeast and continue its growth across the United States.