German supermarket giant Aldi plans to acquire nearly 400 Winn-Dixie and Harveys supermarkets in 2024.
The move will bolster its footprint in the Southeastern US.
Some of the acquired Winn-Dixie locations will retain their recognizable branding and traditional store layout.
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CEO Jason Hart said Aldi would transform a substantial number of these acquired stores into its minimalist format over the next few years.
This strategic acquisition includes Harveys Supermarket, spanning Alabama, Florida, Georgia, Louisiana, and Mississippi, primarily concentrating in Florida with nearly 300 stores.
The transaction, set to finalize in the first half of 2024, is subject to regulatory approval.
This expansion aligns with Aldi’s overarching strategy to achieve 2,400 stores in the US by the close of 2024, having previously announced the opening of 120 new stores.
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Mr. Hart said: “The Southeast is a big part of our growth initiative across the country.
“In fact, it [was] a focus of our growth initiative even before this acquisition — so it was the perfect kind of confluence of factors.”
He noted the real estate potential, given that Aldi’s stores require roughly half the space of traditional grocery outlets.
Notably, Aldi has weathered inflated food prices, resonating with cost-conscious consumers.
Winn-Dixie and Harveys has struggled for years
Winn-Dixie and Harveys have confronted financial challenges for years, leading to closures and layoffs.
Aldi has not disclosed specific details regarding the number of converted stores or the deal’s cost.
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However, experts expect Aldi’s proven operational efficiency to invigorate the business acquired from Southeastern Grocers.
The deal involves Aldi’s cash acquisition of all capital stock from the Florida-based company.
Aldi has already announced plans to open 20 new locations in the Southeast by the end of the year.
Hart added: “Aldi will operate Winn-Dixie and Harveys Supermarket stores with the same level of care and focus on quality and service, as we also evaluate which locations will convert to the Aldi format to better support the neighborhoods we’ll now have the privilege of serving.”
The strategic acquisition enhances Aldi’s competitive stance, introducing its successful blend of quality, curation, and value to the Southeast region.
