Aldi is buying 400 Winn-Dixie and Harveys supermarkets

Sean Gallup/Getty Images

EDGEWOOD, MD – DECEMBER 28: A shopper loads her car outside an Aldi discount grocery store on December 28, 2017 in Edgewood, Maryland. Aldi, which has nearly 1,700 stores across the U.S., will face new competition from German rival Lidl, which will open its first U.S. stores on the East Coast this year. (Photo: Sean Gallup/Getty Images)

New York

Grocers in the Southeast can expect more Aldi stores from 2024.

The German supermarket giant is acquiring Winn-Dixie and other grocers in the Southeast in a move to increase its presence in the region, the company announced Wednesday. Some of the approximately 400 Winn-Dixie locations that Aldi will acquire will retain the familiar red-and-white Winn-Dixie branding and traditional store layout, but many will be converted to Aldi’s brand and bare-bones store design.

The acquisition – which includes Harvey’s supermarkets – will add locations in Alabama, Florida, Georgia, Louisiana and Mississippi to Aldi’s portfolio. Nearly 300 of these stores are located in Florida.

The transaction is expected to close in the first half of 2024 and is pending regulatory approval.

It’s part of Aldi’s plan to expand across the U.S. – it previously announced it would open 120 new stores with a target of 2,400 stores by the end of 2024.

“The timing is right to build on our growth momentum and help Southeast residents save on their grocery bills. This transaction supports our long-term growth strategy across the U.S.,” CEO Jason Hart said in a statement.

Aldi It emerged as a winner in a period of high food prices Customers are looking for cheaper options.

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Winn-Dixie and Harvey’s Supermarket have long been staples of the Southeast region. But over the years, the grocery chains and their parent company have been plagued by financial problems. In 2018, Southeast Grocers files for bankruptcy and plans to close 94 stores. Winn-Dixie A third of its 900 stores closed in 2005 Almost 30% of employees were laid off.

In the deal, Aldi will buy all of the Florida-based company’s capital stock for cash.

Before the acquisition closes, Aldi plans to open 20 new locations in the Southeast region by the end of the year.

“Aldi will operate Winn-Dixie and Harveys supermarkets with the same level of care and focus on quality and service, and by evaluating which locations will convert to the Aldi format, we will better support neighborhoods. ,” Hart added.

Southeast Grocers has agreed to sell its 28 Fresco y Más stores to grocery investment group Fresco Retail Group. The Hispanic grocery chain will also keep its name.

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