German supermarket chain Aldi is growing quickly in the Southeast U.S. — and not just by building new stores, but now through a major acquisition.
Aldi announced Wednesday that it is taking over Southeastern Grocer’s Winn-Dixie and Harveys Supermarket stores. The acquisition includes about 400 stores across Florida, Alabama, Georgia, Louisiana and Mississippi. The price of the sale was not disclosed.
Aldi said it will evaluate which stores will be converted into Aldi locations. Others will continue to operate as Winn-Dixie and Harveys Supermarket stores. The acquisition is expected to close in the first half of 2024, the grocer said.
“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” stated Aldi CEO Jason Hart in a 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.”
Aldi was the fastest-growing grocery chain last year with a focus on the Southeast U.S. with high inflation pinching consumer wallets, according to commercial real estate firm JLL.
But competition is steep in Florida with Publix’s dominance. Aldi grew by 1.87 million square feet, while Publix added 1.2 million square feet in 2022.
By visits, Publix dominates in Florida with more than 600 million visits and Aldi is the fourth-most popular grocery chain in the state at 43 million, according to JLL.
While Jacksonville-based Southeastern Grocers has stores across the region, 75% are concentrated in Florida.
The company experienced several road bumps in the last decade. It filed for bankruptcy in 2018 and had to close nearly 100 stores to restructure. Then Southeastern Grocers tried to go public in 2021 but backed out later that year.
Now it’s divesting all of its stores. While Aldi gets Winn-Dixie and Harveys Supermarket stores, another deal places the 28 Fresco y Más stores catering to Florida’s Hispanic and Caribbean communities under Fresco Retail Group LLC, an investment group focusing on food and retail.
