As ownership sells off the components of Southeastern Grocers, Aldi has announced that it entered into a definitive agreement to acquire Winn-Dixie and Harveys Supermarket, which together include about 400 locations.
The stores are located across Alabama, Florida, Georgia, Louisiana and Mississippi.
Aldi noted that it first established a presence in the southeastern United States in the mid-1990s and since has invested $2.5 billion in the region. The company recently opened its 26th regional headquarters and distribution center in Loxley, AL, to help support new stores in the Southeast, with plans to introduce 20 new Aldi locations in the area by the end of 2023.
Aldi expects the transaction to close in the first half of 2024. One result will be that Aldi will, at least for some time, operate conventional supermarket format stores in addition to its namesake deep discount grocery operations. An additional consequence is that Aldi will have new opportunities to build more business in its general merchandise operation. Aldi, although primarily known for sharply priced, often private label food products, also is a significant purveyor of seasonal outdoor, housewares, home furnishings, electronics and tools merchandise.
Jason Hart, Aldi CEO, said in announcing the acquisition. “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 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. For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores.”
The National Retail Federation listed Aldi as number 15 in its listing of the top retailers operating in the United States based on U.S. sales of $40.21 billion. Worldwide sales of the German retail company are $124.25 billion, according to NRF. Based on worldwide sales, Aldi would rank number six of retailers on the NRF list. Business services firm Deloitte, in its list of retailers operating across the globe, lists Aldi as ninth between Walgreens Boots Alliance and Target Corp.
Southeastern Grocers has announced that, beyond Winn Dixie and Haverty’s, the company is selling its Fresco y Más operations, including 28 stores and four pharmacies, to Fresco Retail Group, LLC, an investment company strategically focused on food and grocery. The transaction will complete the divestiture of the company’s assets by the investment company that owns Southeastern Grocers. Forbes put Southeastern Grocers 2022 sales at $9 billion.
