Supermarket shakeup continues as Aldi sells Winn-Dixie stores it bought less than year ago
Supermarket shakeup continues as Aldi sells Winn-Dixie stores it bought less than year ago
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Some Florida Winn-Dixie stores are becoming Aldis. 10 key differences
Now that Aldi owns Winn-Dixie and Harveys Supermarket, they've begun converting some locations into Aldis. That means a big change in how you shop.
Aldi sold the Winn-Dixie and Harveys Supermarket brands to a consortium of investors, but will continue plans to convert some locations to Aldi stores.
Southeastern Grocers, under the new ownership of the consortium, will continue to operate the remaining Winn-Dixie and Harveys stores.
Aldi, which acquired Winn-Dixie in March 2024, plans to focus on expanding its own brand with new stores and conversions of existing Winn-Dixie and Harveys locations.
The deal allows C&S Wholesale Grocers, a member of the consortium, to expand its retail operations.
In the latest grocery industry shakeup, Aldi has sold the iconic Winn-Dixie grocery chain it acquired less than a year ago.
Aldi said it will keep the Winn-Dixie and Harveys supermarkets it plans to convert into Aldi stores. But it is getting rid of the rest.
Here's what's happening:
What was the deal that Aldi made?
A consortium of private investors acquired Southeastern Grocers — and its Winn-Dixie and Harveys Supermarket brands — from Aldi U.S., which had purchased Southeastern Grocers in March 2024.
Financial terms of the deal, announced last week, were not disclosed.
Who is in this consortium?
It is spearheaded by Anthony Hucker, who is the current CEO and president of Southeastern Grocers; in combination with C&S Wholesale Grocers, an industry leader in wholesale grocery supply in the United States.
C&S Wholesale Grocers was founded in 1918 as a supplier to independent grocery stores, New Hampshire-based C&S now services customers of all sizes, supplying more than 7,500 independent supermarkets, chain stores, military bases and institutions with over 100,000 products. Winn-Dixie is one of its customers.
How many stores are involved in the sale?
The agreement includes the acquisition of grocery and liquor store operations under the Winn-Dixie and Harveys Supermarket brands.
This includes about 170 grocery stores in Alabama, Florida, Georgia, Louisiana and Mississippi, as well as the existing Winn-Dixie liquor store business.
Winn-Dixie was founded in 1925, and is now based in Jacksonville, Fla.
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What about the other Winn-Dixie and Harveys stores?
Aldi plans to complete its previously announced store conversion plans. About 220 Winn-Dixie and Harveys stores will be converted to the Aldi format over a process that began in March 2024 and is expected to conclude in 2027.
Aldi stores are more no-frills than Winn-Dixie stores and are typically smaller.
Until each of the stores is closed for conversion, Southeastern Grocers will continue to operate the stores identified for conversion, and promised it will work with Aldi to assure "a smooth transition."
How many Winn-Dixie stores are being converted to Aldi stores?
The companies have not released a list of all stores targeted for conversion.
"We will be informing our associates first of those decisions as they are finalized, and as market conditions permit," Southeastern Grocers said in a statement. "We will share this information with each community once our associates have been appropriately informed."
What do the new owners plan for the Winn-Dixie and Harveys stores?
Hucker said that, as the new owners "reinvest in the store fleet, we are inspired by listening loudly to the voices of our customers, to elevate and revolutionize our customer experience and store offerings, so that each step we take will reflect our dedication to our people and our communities. We are profoundly grateful and deeply honored to continue serving the communities we cherish.'
Hucker will serve as chair, CEO and president of the new entity, and the consortium immediately assumed control of the Winn-Dixie and Harvey's stores.
Aldi CEO Jason Hart said he is confident that the new ownership group "will lead the company successfully into its next chapter."
Southeastern Grocers said that "our dedication to our associates, customers and communities remains unchanged, and we will continue to provide the same level of quality and value that our customers have come to expect."
Why is Aldi selling the Winn-Dixie and Harveys stores?
Aldi said the transaction "allows Aldi to focus on converting stores to the Aldi brand," while it "progresses its expansion plans across the country."
Aldi is a German company, with its U.S. division based in Illinois.
How much is Aldi expanding its brand?
Aldi — which says it is the fastest-growing grocer in the United States — plans to open more than 225 new stores in 2025 as part of the next phase of its five-year national growth strategy. This is the most stores Aldi will open in one year in its nearly 50-year history in the United States.
Last year, Aldi opened nearly 120 stores, bringing its total store count to over 2,400. That's part of a five-year, $9 billion plan by Aldi to add 800 stores nationwide by the end of 2028 through a combination of new openings and store conversions.
In comparison, Publix has a total of 1,389 store locations in eight states.
Where is Aldi expanding?
In addition to its Southeast expansion, Aldi said it will add to its established footprint in the Northeast and Midwest regions; grow its presence in the West with more stores in Southern California and Arizona; and enter new communities, including Las Vegas.
Why is C&S getting involved in this deal?
C&S Wholesale Grocers CEO Eric Winn said this is an "exciting opportunity" for his company to expand its retail operations. C&S already owns some Grand Union and Piggly Wiggly supermarkets.
Trending reporter Michelle Spitzer contributed to this story.
Dave Berman is business editor at FLORIDA TODAY. Contact Berman at dberman@floridatoday.com, on X at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54
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