Aldi has closed on its purchase of Jacksonville-based Southeastern Grocers -- including 400 Winn-Dixie and Harveys supermarkets in the southern U.S. The acquisition was announced last August.
Aldi said that it will convert a significant number of Winn-Dixie and Harveys Supermarket locations to its format over the next several years. The Southeastern Grocers headquarters will remain in Jacksonville’s Baymeadows area.
News4JAX news partner the Jacksonville Daily Record reported that 50 stores will begin the conversion to the Aldi brand this year. The company still hasn’t said which stores will be affected.
Aldi is based in Germany with a U.S. headquarters in Batavia, Illinois. The company plans to add 800 of its discount grocery stores across the U.S. in a five-year expansion plan that includes the conversion of the Southeastern Grocers stores.
Here’s what the switch to Aldi could mean if you’re used to shopping at Winn-Dixie or Harveys:
- Aldi cuts costs by featuring a limited selection of items
- Customers bag their own groceries
But analysts say the acquisition could also be an opportunity for Aldi to experiment with more traditional grocery stores, so it’s unclear exactly what will change in the conversions.
The purchase of Southeaster Grocers follows a wider trend that means fewer options for shoppers.
- Walmart controls 25% of the U.S. grocery market
- Aldi controls 2%
- Southeastern Grocers controls less than 1%
Kroger and Albertsons -- the two largest grocery chains in the U.S. -- recently announced plans to merge. The Federal Trade Commission is suing to try and block that merger from happening.
The FTC argues the deal would eliminate competition and lead to higher costs for groceries and other household items.