Dive Brief:

• Aldi has sold Southeastern Grocers, including its Winn-Dixie and Harveys Supermarket brands, to a consortium of private investors led by Anthony Hucker, the current president and CEO of Southeastern Grocers, alongside C&S Wholesale Grocers. The terms of the deal have not been disclosed.
• The transaction involves the sale of approximately 170 Winn-Dixie and Harveys Supermarket locations, as well as the associated liquor store business. Aldi intends to convert 220 previously acquired stores into Aldi locations.
• This acquisition creates a new regional grocery competitor in the Southeast and represents a shift for C&S, which had been preparing to acquire nearly 600 supermarkets from Kroger and Albertsons before those retailers’ merger plans failed.

Dive Insight:

This multifaceted transaction signifies pivotal changes for both Aldi and C&S Wholesale Grocers. Following substantial regulatory resistance concerning C&S’s capability to manage a larger network of retail stores, C&S finds itself with a significant stake in roughly a third of the stores it would have acquired from Kroger and Albertsons.

The concentration of the former Aldi locations within the Southeast could enhance distribution efficiencies for C&S, which has been a supplier for Southeastern Grocers for the past two decades.

Southeastern Grocers has announced that it will continue operating the stores that Aldi plans to transition to its own branding until each store is closed for conversion. The approximately 170 stores involved in this transaction are situated in Alabama, Georgia, Louisiana, Mississippi, and Florida.

This divestiture sees Aldi offloading around 42% of the approximately 400 stores it acquired in 2024 along with the Southeastern Grocers business.

In addition, Aldi has announced its intention to open 225 new stores in the U.S. in 2025, which reflects the largest annual growth projection the company has ever laid out in this market. This expansion will be partially achieved through the conversion of the Winn-Dixie and Harveys locations that Aldi is retaining.

By the end of 2027, Aldi plans to convert approximately 220 Southeastern Grocers locations into its own stores, with around 100 of these expected to reopen by the end of this year.

Aldi has expressed that this transaction paves the way for a “focused conversion portfolio” in the Southeast region.

When Aldi initially announced its acquisition of Winn-Dixie and Harveys Supermarket in 2023, the future role of these brands in the Southeast grocery landscape was uncertain. However, this recent deal indicates that the consortium led by Hucker, who has been with Southeastern Grocers since 2016, aims to ensure that Winn-Dixie and Harveys will remain competitive players in the market.

Anthony Hucker emphasized the commitment to “thoughtful, purpose-driven growth,” stating, “As we reinvest in the store fleet, we are inspired by listening closely to our customers, elevating and revolutionizing their experience and store offerings. Every step we take reflects our dedication to our people and our communities.”

Jeff Wells contributed reporting.