Aldi, the Germany-based supermarket chain, is buying 400 Winn-Dixie and Harveys supermarkets in the southeast, the company said Wednesday. It’s not clear if the Key Biscayne branch will remain a Winn-Dixie or convert to the no-frills Aldi brand and format.
Winn-Dixie has a long history in Miami, where it was founded in 1925, and took the Winn-Dixie name in 1955.
Southeastern Grocers Inc. (SEG) is the parent company and home of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores. Financial terms of the deal were not disclosed.
“Like ALDI, Winn-Dixie and Harveys Supermarket have long histories and many loyal customers in the Southeast and we look forward to serving them in the years to come,” said Jason Hart, the Aldi CEO.
Hart said the company is in the process of evaluating which stores it will convert to Aldi. He said the company’s goal is to close out the year with 2,400 stores.
“For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores,” he said in a statement.
The deal comes amid wider consolidation in the grocery industry as customers increasingly defect to big box stores like Walmart, which controls more than 20% of U.S. grocery sales. Last fall, Kroger and Albertsons __ two of the largest U.S. grocery chains __ announced plans to merge in a $20 billion deal. Regulators are reviewing that plan now; if it’s approved, it is expected to close early next year.
Southeastern Grocers also plans to sell its 28 Fresco y Mas stores to Fresco Retail Group, an investment company, which will continue to operate them under the same brand.
Meredith Hurley, a Southeastern Grocers spokesperson, said details of store conversions would be made public after the merger is completed, which is expected in the first half of 2024. The deal requires regulatory approval.
This story has been updated. The Associated Press contributed to this report.
Tony Winton is the editor-in-chief of the Key Biscayne Independent and president of Miami Fourth Estate, Inc. He worked previously at The Associated Press for three decades winning multiple Edward R. Murrow awards. He was president of the News Media Guild, a journalism union, for 10 years. Born in Chicago, he is a graduate of Columbia University. His interests are photography and technology, sailing, cooking, and science fiction.