Growing discount grocer Aldi devouring the Winn-Dixie supermarket chain

Herald Staff Report
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Aldi, the rapidly growing discount grocery chain, plans to acquire Winn-Dixie supermarkets from its Jacksonville owner, the two retail food chains said Wednesday.

The sale agreement has been approved by the majority of Southeastern Grocers’ stockholders. After obtaining regulatory approvals the deal is expected to close in early 2024. Financial terms weren’t disclosed.

Germany-based Aldi said it would keep the Winn-Dixie banner on roughly 400 supermarkets it’s buying in Florida — where 75% of Winn-Dixie supermarkets are located — and in Georgia, Louisiana and Mississippi.

There are about 40 Winn-Dixie and 50 Aldi grocery stories in South Florida, and Aldi continues to expand. In addition, Aldi will get Harveys Supermarkets as part of the deal. There are none of them in South Florida. Also, Southeastern said it plans to divest its 28 Fresco y Más Hispanic grocery stores, mainly in South Florida, and four pharmacies, selling them to Fresco Retail Group LLC, an investment group focused on food and grocery.

“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” Aldi CEO Jason Hart said in a prepared statement. “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.”

Winn-Dixie is an older chain that has gotten smaller in South Florida to try to compete more effectively in targeted cities with supermarket titan Publix.

Anthony Hucker, CEO of Southeastern Grocers, said in a statement that its “transformational journey” with Winn-Dixie has led to an opportunity for Aldi to add Winn-Dixie to its portfolio. He said Southeastern and Aldi share a customer value commitment and have similar operating visions.