Discount grocer Aldi said Wednesday it plans to buy 400 Winn-Dixie and Harveys supermarkets in the southern U.S.
Discount grocer Aldi said Wednesday it plans to buy 400 Winn-Dixie and Harveys supermarkets in the southern U.S.
Under a proposed merger agreement, Aldi will acquire all outstanding shares of Jacksonville, Florida-based Southeastern Grocers Inc., the parent company of Winn-Dixie and Harveys. If the deal is approved by regulators, it's expected to close in the first half of 2024.
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Financial terms of the deal weren’t disclosed. Both Southeastern Grocers and Aldi are private companies. Aldi is based in Germany with a U.S. headquarters in Batavia, Illinois.
Aldi said the deal supports its long-term growth strategy in the U.S., where it expects to have 2,400 stores by the end of this year. The Winn-Dixie and Harveys supermarkets it’s acquiring are primarily in Alabama, Florida, Georgia, Louisiana and Mississippi.
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Aldi said it will convert some locations to its own brand and format, which cuts costs with features like lean inventories and self-bagging. But it will operate some stores under the Winn-Dixie and Harveys brands.
The deal comes amid wider consolidation in the grocery industry as customers increasingly defect to big box stores like Walmart, which controls more than 20% of U.S. grocery sales. Last fall, Kroger and Albertsons __ two of the largest U.S. grocery chains __ announced plans to merge in a $20 billion deal. Regulators are reviewing that plan now; if it’s approved, it is expected to close early next year.
Southeastern Grocers also plans to sell its 28 Fresco y Mas stores to Fresco Retail Group, an investment company, which will continue to operate them under the same brand.
