Aldi to Acquire 400 Winn-Dixie, Harveys Groceries in Southern US

August 16th, 10:00 PM EDT

Aldi storefront

MGN via Mike Mozart / CC BY 2.0

(NEWSnet/AP) — Discount grocer Aldi said Wednesday it plans to buy 400 Winn-Dixie and Harveys supermarkets in the southern U.S.

Under a proposed merger agreement, Aldi will acquire all outstanding shares of Jacksonville, Florida-based Southeastern Grocers Inc., the parent company of Winn-Dixie and Harveys. If the deal is approved by regulators, it's expected to close in the first half of 2024.

Financial terms of the deal weren’t disclosed.

Aldi said the deal supports its long-term growth strategy in the U.S., where it expects to have 2,400 stores by the end of this year. The Winn-Dixie and Harveys supermarkets it’s acquiring are primarily in Alabama, Florida, Georgia, Louisiana and Mississippi.

Aldi said it will convert some locations to its own brand and format, which cuts costs with features like lean inventories and self-bagging. But it will operate some stores under the Winn-Dixie and Harveys brands.

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.