Aldi bought Southeastern Grocers Inc., the parent company of Winn-Dixie. | Jessica Palombo, Jacksonville Today
Published on August 16, 2023 at 12:36 pm
Aldi, one of the nation’s largest grocery store chains, plans to acquire the Jacksonville-based Winn-Dixie and Harveys Supermarket stores in the Southeast.
Under the proposed merger, Aldi will acquire all outstanding stock of Southeastern Grocers Inc. in an all-cash transaction, including about 400 stores in Florida, Georgia, Alabama, Louisiana and Mississippi.
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The purchase price was not disclosed, nor was information about store closures or the future of Southeastern employees.
Aldi will continue to operate the existing Winn-Dixies and Harveys, with the possibility of converting some locations to the discount Aldi format, Southeastern Grocers said in a statement.
“For those stores that are not converted, Aldi intends for them to continue to operate as Winn-Dixie and Harveys Supermarket stores. … Southeastern Grocers remains committed to conducting business as usual,” the statement said.
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A majority of Southeastern’s shareholders have approved the merger, which is expected to close in the first half of 2024, subject to regulatory approvals, the company said.
Southeastern Grocers also has agreed to sell its 28 Fresco y Más supermarkets and four pharmacies to Fresco Retail Group LLC, an investment group focused on food and grocery. Fresco Retail Group, LLC plans for all stores and pharmacies in the Fresco y Más banner to continue to operate as they are.
A Southeastern Grocers spokeswoman did not respond directly to questions about staffing in Northeast Florida. She said only that the company has invested more than $1.5 billion in its Florida operations, with plans to open 14 stores in the state this year.
The company employs 2,100 people in Jacksonville, where it has a warehouse and several dozen stores, the Jacksonville Business Journal reported.
Southeastern Grocers also would not grant an interview about the merger. In a news release, President and CEO Anthony Hucker said only that the merger is “a testament to our successful transformational journey and the tireless work of our dedicated associates who serve our communities.”
“ALDI shares our vision to provide exceptional quality, service and value, and this unique opportunity will evolve our business to benefit our customers, associates and neighbors throughout the Southeast,” Hucker said.
Winn-Dixie’s roots
Winn-Dixie was founded in 1925, while Harveys was started a century ago by Iris and J.M. Harvey. At least 70 Winn-Dixie and Harveys supermarkets, liquors stores and pharmacies operate in Northeast Florida, many clustered in Jacksonville and northeastern Clay County as well as St. Johns County.
The company has had its financial ups and downs in recent years.
Southeastern was formed in 2012 after Winn-Dixie Stores Inc. merged with Bi-Lo LLC. Both Winn-Dixie and Bi-Lo went through Chapter 11 restructurings before their merger.
Southeastern also filed for Chapter 11 bankruptcy reorganization in 2018, saying it planned to close 94 underperforming stores, including six in North Florida and Southeast Georgia. It continued operating 582 other stores in seven states under the brands Winn-Dixie, Bi-Lo, Harveys and Fresco y Mas.
In 2021, Southeastern officially pulled the plug on plans to take the company public. It did not cite a specific reason but noted that “the company will continue to evaluate the timing for the proposed offering as market conditions develop.” Southeastern now said operates more than 320 Winn-Dixie, Harveys Supermarket and Fresco y Más stores in Florida.
Aldi’s plans
Aldi opened its first U.S. store in 1976 in Iowa. Headquartered in Batavia, Illinois, outside Chicago, the chain operates more than 2,000 stores across 36 states with more than 25,000 employees. It operates 13 stores in the Northeast Florida area.
Jacksonville’s stores include Duval Station Road on the Northside, Emerson Street and Philips Highway, Town Center Parkway, San Jose Boulevard, and Blanding Boulevard. One is in the Doctor’s Inlet area of Clay County, another near Doctor’s Lake, plus Race Track Road in Fruit Cove and U.S. 1 in St. Augustine.
Like Southeastern Grocers, Aldi would not grant an interview with company officials about the merger plans. In a news release, the company stated that it first established its presence in the mid-1990s in the Southeast, has invested $2.5 billion in the region and opened its 26th regional headquarters and distribution center in Loxley, Alabama.
Aldi plans to open 20 new locations in the area by the end of the year.
“The time was right to build on our growth momentum,” Aldi CEO Jason Hart said in the news release. “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.”
