Aldi plans to acquire 400 Winn-Dixie and Harvey’s Supermarket locations across the Southern United States starting in 2024.
According to a release from Aldi, this acquisition aims to continue the growth of the supermarket chain, “expanding its ability to serve the region with great products at the lowest possible prices” possible.
Although Aldi will be acquiring 400 stores, CNN Business reported that the company plans on keeping the familiar red and white Winn-Dixie color brand and traditional store layouts for some of them while others will convert to Aldi’s brand and store format.
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“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” said Aldi CEO Jason Hart. “The transaction supports our long-term growth strategy across the United States.”
Locations plan to be added across Alabama, Florida, Georgia, Louisiana and Mississippi to Aldi’s portfolio. Nearly 300 of these stores are based in Florida.
“Aldi will operate Winn-Dixie and Harvey’s 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,” Hart said.
According to CNBC reports, the company has invested roughly $2.5 billion in the region since the mid-1990s. It plans on adding 120 new stores, equating to a total of more than 2,400 stores the end of the year.
Amid the concerning rise in inflation, grocery stores have remained resilient as customers focus on spending more on groceries rather than dining out.
This deal comes shortly after customers have been reported to shop at supermarket giants like Walmart, which controls more than 20 percent of U.S. grocery stores. Last year, Kroger and Albertsons – two of the largest U.S. grocery chains – announced its plans to merge in a $20 billion deal. If approved, it’s expected to close early next year.
Financial terms of the deal were not disclosed.
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