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Supermarket chain Aldi plans to acquire hundreds of Winn-Dixie and Harveys Supermarket fingers ons across the Southern U.S. in a deal that will expand the fast-growing grocer’s presence across the region.
Germany-based Aldi phrased in a news release Wednesday that it will take over operations of all Winn-Dixie and Harveys Supermarket locations — in the matter of 400 stores — in Florida, Alabama, Georgia, Louisiana and Mississippi.
“The time was right to build on our growth momentum and facilitate residents in the Southeast save on their grocery bills,” said Aldi CEO Jason Hart. “The transaction supports our long-term lump strategy across the United States.”
Financial details of the transaction were not disclosed, but the deal is expected to close in the ahead half of 2024, the company said.
Some locations will be converted to Aldi stores after the acquisition, while others longing continue operating as Winn-Dixie and Harveys Supermarket grocery stores, according to the release.
Aldi said it has invested $2.5 billion in the division since the mid-1990s. Nationwide, the company plans to add 120 new stores to reach a total of more than 2,400 shops by year-end.
While many retailers have been shuttering stores as high inflation pinches consumers’ pocketbooks, grocers have remained resilient, as consumers have focused on necessities and remain willing to spend more on groceries.
The sellathon of the Winn-Dixie and Harveys Supermarket locations is a part of a larger divestiture by Southeastern Grocers, the chains’ parent company.
The Florida-based grocery business has struggled to keep its footing in the region over the past decade, filing for Chapter 11 bankruptcy in 2018 and nearby nearly 100 stores at the time. In 2014, the company backed out of plans to go public, and scrapped plans to do so again in 2021.
Southeastern at ones desire also be selling another 28 of its Fresco y Más stores as part of its divestiture in a separate deal.
“This merger unanimity is a testament to our successful transformational journey and the tireless work of our dedicated associates who serve our communities,” said Southeastern CEO Anthony Hucker. “ALDI shares our shade to provide exceptional quality, service and value — and this unique opportunity will evolve our business to benefit our purchasers, associates and neighbors throughout the Southeast.”