Just when you thought the Winn-Dixie brand was circling the drain, an investment group has purchased owner Southeastern Grocers from Aldi U.S., the company that bought it last March.
The company has been purchased by a “consortium of private investors,” including Southeastern Grocer’s longtime supply chain partner, C&S Wholesale Grocers, according to a news release from Southeastern Grocers late Friday afternoon.
Under leadership of Southeastern Grocers president and CEO Anthony Hucker, the company plans to continue operating 170 stores operating under the Winn-Dixie and Harvey’s Supermarket banners, including numerous Winn-Dixie liquor stores, from Aldi U.S., the release said.
Based in Keene, New Hampshire, C&S is the largest grocery wholesaler in the United States and the nation’s eighth-largest privately owned company, the industry website Progressive Grocer reported.
Aldi, which has started converting about 220 of the stores it purchased to its Aldi format, will continue that multi-year conversion process through 2027, the release said.
Which stores will be converted and which stores will remain as Winn-Dixies or Harvey’s has not yet been revealed.
An SEG spokesperson said, “We will be informing our associates first of those decisions as they are finalized, and as market conditions permit. We will share this information with each community once our associates have been appropriately informed.”
In South Florida, five conversions have already been announced or are underway:
— Fort Lauderdale, 941 SW 24th St.
— Boynton Beach, 8855 Boynton Beach Blvd.
— West Lake, 50650 Seminole Pratt Whitney Road
— Aventura, 20417 Biscayne Blvd.
— Boca Raton, 7024 Beracasa Way
A blog called My Florida Retail that keeps a running tally of the Aldi conversions, either through announcements by the company or by looking at permit applications, as of Feb. 7 has documented 97 across Florida, Georgia, Mississippi, Louisiana and Alabama.
That could mean that more than 120 stores will continue operating as Winn Dixies and Harvey’s until Aldi moves to convert them.
On a Facebook page following the conversions, Winn-Dixie employees complained about the lack of transparency regarding which stores will continue operating and which will be converted. Others said that secrecy is necessary to prevent employees from resigning ahead of time from stores that will be converted.
The news release said, “Aldi and SEG leadership will continue to work together closely to ensure a smooth transition, with dedicated leaders overseeing the store conversion and hiring process. SEG will continue to operate the remaining stores identified for conversion in the normal course of business, with the same level of care and focus on quality and service, up to and until each respective store is closed for conversion.”
An online search shows that 37 Winn-Dixie stores remain open in the tricounty region, including 18 in Miami-Dade County, 14 in Broward County and five in Palm Beach County.
Remaining Broward stores include four in Fort Lauderdale, two in Hallandale Beach, two in Miramar, and one each in Hollywood, Margate, Davie, Tamarac, Plantation and Deerfield Beach.
In Palm Beach County, the chain operates stores in West Palm Beach, Royal Palm Beach, Lantana, Lake Worth and Palm Beach Gardens.
Named in 1955 following a merger of two grocery chains, the Winn-Dixie chain continues to hold on despite being squeezed by Aldi, Walmart and a number of Latin-focused chains on the value side and Publix, Whole Foods, Fresh Market and Sprouts on the upscale and organic sides.
Southeastern Grocers filed for Ch. 11 bankruptcy protection twice — in 2005 and 2018 — and closed 31 South Florida stores. It operated more than 500 stores in its five-state market as recently as 2022. It peaked in 2001 with 1,153 stores, according to the Florida Times-Union.
Aldi, by contrast, operates 2,474 U.S. locations, including 228 in Florida.
The news release announcing the purchase of Southeastern Grocery says the company plans to reinvest in its stores and expand the company. “Throughout this transformational journey, our commitment to thoughtful, purpose-driven growth remains strong and propels us forward with renewed momentum,” it said.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
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