Don't have the time right now to go into detail, but here's the article: https://www.prnewswire.com/news-releases/aldi-to-acquire-winn-dixie-and-harveys-supermarket-to-continue-growth-in-the-southeast-301902141.html
Another good analysis of the situation here: https://www.forbes.com/sites/phillempert/2023/08/16/aldi-enters-the-traditional-supermarket-business-why-its-a-smart-move/
I know SEG was rumored to be up for sale, but I certainly didn't see this pairing coming! More updates to come soon!
AFB
This is going to be an interesting merger due to very different store concepts and overall business model.
ReplyDeleteThis is an interesting and a rather unexpected deal. It isn't surprising to see SEG come apart like this as it always seemed that SEG was going to be a rather temporary situation. If anything, it lasted a little longer than expected. Aldi being the buyer is totally surprising though, at least it is to me.
ReplyDeleteMy best guess is that Aldi would like to convert as many stores as possible to the typical Aldi format. I know AFB has mentioned before how popular Aldi is in Florida, much more so it seems than Aldi in Houston, and it is easy to see why given their significantly lower prices than Publix and Winn-Dixie. The Aldi format is viable in Florida and converting the stores allows Aldi to also sub-divide larger Winn-Dixie spaces and make further money off those lease deals. It's a Winn-Win for Aldi. It is a loser for those who shop at Winn-Dixie and who expect a traditional supermarket experience, but it has long been known that Publix is really the only viable 'normal' supermarket in Florida. Live by Publix, die by Publix I suppose.
Then there are the matters of Winn-Dixie stores where there is an Aldi already nearby or where the Winn-Dixie stores are profitable in their current format. I reckon Aldi can make a deal with C&S to supply name brand products to those stores. Whether they'll also have Aldi products is hard to say. We'll have to see if these Winn-Dixie stores are more price competitive than current Winn-Dixie stores.
So, yeah, this won't be good news for anti-Publix shoppers who want a traditional shopping experience, or at least for people who don't want Publix to have a monopoly, but this could be good news for those wanting some price relief from Publix's reputation for high prices. I wonder if Winn-Dixie clerks will be allowed to sit and if they'll have to use a quarter to use a Winn-Dixie cart!
I look forward to hearing AFB and Sing Oil's thoughts, and everyone else's, about this deal.
I can see Aldi not being as popular in Houston as a store like H-E-B gives you that regular grocery store experience with prices in line with Walmart.
DeleteWith Winn-Dixie's social media feed pushing all of these recently renovated stores as well as a few new builds, I was under the impression that they had gotten to the point of being healthy. It was kind of weird seeing a NEW Winn-Dixie being built from scratch. They wouldn't be number #1 in Florida, (which is a flaw in American thinking; see articles about the Instant Pot company bankruptcy), but they'd be healthy. There's an apparent flagship Winn-Dixie opening in the Orlando area TODAY.
It will indeed be interesting to see how it all pans out. I didn't see Aldi as the acquisition type.
"I can see Aldi not being as popular in Houston as a store like H-E-B gives you that regular grocery store experience with prices in line with Walmart."
DeleteYes, Hello, that is a big part of it. HEB isn't a regular supermarket like a Publix in the sense that like Aldi, HEB pushes their own brand products very hard. That said, unlike Aldi, at least HEB does have some of the expected name brands (though not as many as some might expect given how big the stores are). Also, like Costco and Sam's, HEB uses a high volume model. HEB doesn't use forklifts and pallet displays, but it is kind of a hybrid model. Newer HEB stores have open stockrooms and such.
Also, people in Texas do not have an aversion to larger format stores and so Walmart Supercenters do quite well here in addition to HEB. Kroger does well in Houston and Dallas and they're pretty aggressive on pricing. Kroger's perishables are often around the same price as HEB and Walmart's prices. The center store items are more expensive than HEB and Walmart, but Kroger is pretty aggressive on sales.
Then there is HEB's Joe V's discount store format which is probably even cheaper than Aldi with bigger (though very, very busy) stores and with some national brands. So, yeah, with all of this from HEB/Joe V's, Walmart, and Kroger, as well as Food Town, it is hard for Aldi to get much of the pie here. People do shop at Aldi here, but their stores are often about as busy as a Walgreens.
Interesting point about subdividing the Winn-Dixie spaces, yet I wonder what tenants could actually take the space in today's retail apocalypse climate, where big box specialty stores once touted as replacements to dying malls, are also shuttering? Already, most shopping centers have junior anchor spaces formerly occupied by Walgreens, CVS, etc., which moved into freestanding locations, and now that space tends to be taken up with anything from Pet Supermarket, to Five Below, or second-hand stores.
DeleteAnonymous, I can't speak for Florida, but in Houston at least, there is still high demand for retail spaces. I suspect with Florida being a high-growth area, things are pretty similar in the cities at least. The current trend is for modern tenants to want smaller spaces. Some of these tenants are non-traditional retailers in that they are gyms, salons, and things like that. There are also growing retailers who operate out of somewhat smaller spaces like Ollie's, Harbor Freight, and the others you mention like Five Below. In Texas City, a spot AFB is familiar with, a former Randall's/Albertsons is now home to a Ross and Aldi combo.
DeleteSomeone in the Houston retail community recently spoke to an executive with a Houston independent supermarket chain and the grocer said that it has become hard for them to get their leases renewed because landlords would rather subdivide grocery anchors and get rent from two organizations rather than one. In the past, landlords wanted grocery anchors to drive traffic to the rest of the center, but attitudes might be different now especially when the grocery anchor is one which does not do a large amount of business.
Same in Florida about fitness clubs taking over lots of anchor spaces, but maybe not enough space from a subdivided supermarket. Fitness centers taking over unlikely anchors hasn't been a new trend, but definitely has been more apparent within the last ten years. You're also right about Harbor Freight, and I would add Hobby Lobby. I heard Big Lots might be in trouble, so not sure about Ollie's, although I've only ever been to one.
DeleteSome local governments are relaxing zoning regulations for strip malls past their prime and seas of parking to be redeveloped into multi-family under the guise of affordable housing, if you consider two grand for a studio as "affordable."
Anonymous in Houston:
DeleteI have family in suburban Houston, and you've affirmed some of my observations about H-E-B. It IS a great store, and as mostly a perimeter shopper, it would meet most of my needs if I lived there. They've seem to have taken the spotlight from Wegmans on several "Best Grocer" lists since COVID. They are really able to push the innovation buttons that may be riskier for stores with 1,000+ footprints.
However, I did notice that they push a lot of their own brands and can be limited in variety of national brands they offer. Looking at the H-E-B website for the store I would typically visit, they have 13 Planters Nuts products listed. At my neighborhood Publix that is probably 30%-40% of the size, there are 36 varieties of Planters Nuts products. So, if I was super loyal to having to have the specific product I wanted, which I'm not, I'd have to go to the nearby Kroger. Just one example, I know. :-)
But the cool thing is that they aren't merely offering an alternative to the popular national brand (e.g. Kraft BBQ Sauce alternative, Ruffles Chip alternative), but they have full product lines of different flavors and such for different foods that stand on their own. I'd say one of the only cases where Publix does this is ice cream and to an extent their Greenwise natural/organic label.
Hello:
DeleteYes, that is correct about HEB and their selection of store brands and national brands. At smaller HEB stores, things can be even more slanted towards HEB brands. As you say, HEB has a lot of variety of flavors and such in their store brands and the quality is generally very good. I think people willing to buy the HEB brand will be quite pleased by it. HEB also always tries new 'limited edition' flavors of their own brand stuff. For example, right now they have Mt. Hood Oregon Cherry ice cream and also Mt. Hood cherries in the produce department. Items like these are not really available elsewhere, unless someone sells Tillamook's Oregon Cherry ice cream which is a rarer flavor in this part of the country, so that is exciting for some people.
Aside from a limited selection of national brands, there are problems with HEB. HEB is very different than Publix in how and where they put locations. Publix likes to put locations in every corner of a busy area...sometimes even multiple stores on one corner! HEB is very different. To support their high turnover model, they use a regional store model with stores often on freeways. Since HEB has fewer stores, the stores themselves are extremely busy. The parking lot is often tight and totally chaotic. The stores often have poor layouts and they are extremely busy. The personal shoppers at some locations pushing big carts do not slow down for anything and you really have to dodge those personal shoppers. These are often not comfortable places to shop and, locally, 'The People of Walmart' is starting to become 'The People of HEB' given how many crazy things happen at HEB locations. For example, last month, two people got into an argument at one of the bigger, more ritzy HEB locations in my area and one person started shooting a gun right in the middle of the store. Fortunately, nobody was injured, but the store had to be evacuated and closed for a while due to the investigation. Finally, compared to even nEvergreen Publixes, HEB stores are just flat out ugly, IMO. They have all the allure of a Home Depot.
With all of this, it is easy to see how Kroger still has an opportunity to get a pretty significant share of the market. Aldi has very little share of the market. In Dallas-Ft. Worth, Aldi's marketshare is 1.44% and in Houston, they didn't even make the chart so, at best, their marketshare is under 1.9% and they have a lot of locations in both places. In Florida, where smaller stores are viewed more positively and where Publix and Winn-Dixie has sky high prices, Aldi is probably viewed much more positively.
One thing I don't know about Publix is the quality of their store brand products. I don't hear much about it and I think Winn-Dixie is more known for their store brand products. Perhaps this is another good opportunity for Aldi as those looking for store brands might be tempted to shop at Aldi and Winn-Dixie rather than Publix. FWIW, Kroger's store brands are also very good and have a good reputation. Randall's (Albertsons) store brands are more hit or miss. Some are very good, but some taste like store brand products. Safeway's store brand products were better before the Albertsons merger.
Yes. The H-E-B crowds can be heavy. As an outsider, I want to explore the unique things they have to offer, but I always feel like I'm in someone's way. I have the same issue at Trader Joe's. And I'm a fairly fast-paced person. :-) I did fare better when I visited Central Market, but that could have been because of the time of day. It's incredible that H-E-B is able to be in the Top 10 in market share nationally while only existing in one US state.
DeletePublix's store brands are well-respected, at least here in Florida. Even years ago when buying the store brand was considered being a cheapskate, it was okay if it was Publix. I think the only category where they go way out on is ice cream. They even had an ice cream tour in Florida this summer where they drove a food truck to different cities with free cups of ice cream and activities for kids. The previous flagship had a "by the scoop" ice cream bar in its cafe. It's not uncommon for people to get their wedding cakes from Publix, at least in Florida. Then of course, their subs and hot case.
I'd say things are neutral when it comes to SEG or even the previous Winn-Dixie store brand though I remember Winn-Dixie's sodas having a good rep. Perhaps if Aldi elevates SEG's store brands without diluting the availability of national brands the remaining WD/Harvey stores offer, that will be a good thing.
I've been happy to have a very local Winn-Dixie open since the 1980s, that has braved everything with no indication of closing. I love Publix, but am not the biggest fan of the location across the street.
ReplyDeleteAt least I don't have to worry anymore about seeing another slew or mass closures, Fresco y Mas conversion, or anything else milking SEG to make Wall Street happy. For all we know, Aldi might convert the stores where they see fit, and then sell the remaining ones to somebody like Kroger, who I was hoping was going to buy the venerable SEG if the Albertsons deal fell through. But then again, considering Kroger's track record in Florida and mass closures, maybe not, unless "third time's the charm" with their re-entry into Florida with grocery delivery.
Alternatively, maybe Aldi really does intend on maintaining Winn-Dixie and Harvey's as conventional supermarkets, and their deep pockets are what's needed to survive against Publix? They already have a monopoly on the "middle" with their namesake stores for discount groceries that eats from Walmart's share of big and small stores, and indirectly through the "other" Aldi, Trader Joe's with more upscale and specialty offerings that Lucky's, Earth Fare, and even Whole Foods 365/Amazon Fresh failed at.
Trader Joe's is actually owned by a different Aldi than the Aldi which runs grocery stores here in the US. In the 1960s, Aldi split into Aldi Nord (North) and Aldi Süd (South) due to a conflict between the two founding brothers about the sale of cigarettes. The US Aldi grocery stores are owned by Aldi Süd and Aldi Nord owns Trader Joe's. Aldi Süd is the one taking over Winn-Dixie.
DeleteYou're quite correct in saying that Aldi might convert the stores they want to convert and then sell the rest to another operator. Heck, who knows, maybe Aldi will sell the remaining stores to C&S who has recently relaunched the Grand Union brand in the Northeast. I'm not saying Grand Union is returning to Florida, but who knows, lol! Kroger might be interested even though Winn-Dixie wouldn't be a typical Kroger acquisition given that Winn-Dixie's stores don't have the marketshare of banners Kroger is usually interested in and their stores are smaller than what Kroger likes to operate these days, but smaller is not really a problem in Florida.
Hence why I said "other" Aldi, although I stand corrected in my belief that both divisions were under one family trust, albeit controlled separately in all aspects.
DeletePart 1:
ReplyDeleteI'll share some of my own thoughts and touch on everyone else's here - I've read a lot of articles on the Aldi/WD deal today and heard a lot of theories about what's going on here, everything from this being a real estate move to Aldi being afraid of what may happen if Albertsons and Kroger merge. I personally feel Aldi buying Winn-Dixie to gut it for the real estate would be a poor move overall, as there's no shortage of places for Aldi to open their typical 15,000-20,000 square foot stores here. Aldi has said there will be some WD and Harvey's stores that convert, but I feel this will be on a more select basis, and probably concentrated on existing Harvey's stores, as WD tried to tool Harvey as a "discount" chain with results that don't seem to have been that great. Winn-Dixie also spent a lot of money upgrading the store fleet, so it would also be a waste to see those newly remodeled stores converted, as well as some of WD's stores in smaller towns where they're pretty much the only grocery option in town.
I feel this deal is something along the line of Amazon buying Whole Foods - an experiment to see if running a traditional grocery chain is a viable option for Aldi's future growth, especially amidst all the mass consolidation that will occur if the Albertsons/Kroger deal goes through. Winn-Dixie is in a very good position right now to take on Publix, having worked on upgrading the store fleet to promising results, and with a respectable presence in Florida. Aldi just finished refreshing all of its stores and changing its image to be more modern and trendy, and in a way Winn-Dixie is doing the same thing at the moment. Aldi could potentially help Winn-Dixie on price, and a combined Winn-Dixie/Aldi could really give Publix a run for its money by trying to promote itself as Florida's low price leaders. There are still a lot of unknowns here, and the scenario above would be my "ideal". In the worst case scenario where Aldi guts Winn-Dixie for its real estate seems like a poor choice and missed opportunity to me, as WD is primed to where a new owner could have a really good chance at taking on Publix.
WD and Aldi seem like total opposites, but I can see potential synergies between the two - Winn-Dixie wants their angle to be price when competing, and Aldi's expertise is on price. Aldi also finished a total refresh campaign of the entire chain, and WD is doing that at the moment. That said I would have never guessed Aldi would have had any interest in WD prior to today, but it will be interesting to see how this unfolds, being that Aldi has never run a traditional grocer before.
Part 2:
DeleteAldi is really popular in Florida - their stores are popping up like weeds here. Aldi is only one store away from tying Illinois as the state with the most Aldi stores (211), and by the end of the year Florida will for sure have taken that title from Illinois, even without Winn-Dixie in the picture. If Aldi is going to experiment with owning a traditional format, might as well do it in a growing market where you know you have a strong following. Hopefully Aldi isn't trying to take Publix's advice that smothering an area with an excessive amount of stores is the key to success - I like Aldi, but I don't think Florida needs 600 Aldi stores (some within a block of each other), and most of which would have came at the expense of Winn-Dixie!
It seemed like Winn-Dixie had culled its store fleet to be the perfect missing slice to Kroger's presence in the Southeast, which is why I thought Kroger was always SEG's intended suitor for when it was time to sell. However, Kroger's recent strategy of slowing down the construction of new physical stores and lack of care for existing ones isn't exactly what I'd like to see in a company running WD at the moment. With Kroger involved in the Albertsons mess, Aldi was able to slip in, so it will be interesting to see how this arrangement unfolds. I would like to see this unfold where Aldi invests in Winn-Dixie to give it that last push to be a viable chain in the long term, rather than a situation where Aldi strips WD of its assets and plants hundreds of new Aldis all across Florida. If nothing else, like Anonymous from Houston said, at least Winn-Dixie's cashiers will get a chair!
"I personally feel Aldi buying Winn-Dixie to gut it for the real estate would be a poor move overall, as there's no shortage of places for Aldi to open their typical 15,000-20,000 square foot stores here."
DeleteI suspect Aldi's line of thought might be here that Winn-Dixie might be in the middle of some leases where their rent rates are well below modern market rates given the rather inflated prices for real estate in modern times. It is also possible that Winn-Dixie renegotiated some leases during their bankruptcy era which gave Winn-Dixie a bit of a break and perhaps Aldi is wanting to take advantage of that. On top of that, Aldi can sub-lease unused space and make even more money on top of that.
Of course, converting a Winn-Dixie to a typical Aldi will not be cheap. Furthermore, it'll be interesting to see who Aldi puts in charge of the stores which aren't converted to a regular Aldi. If they are current SEG people, then maybe there won't be a lot of changes and perhaps C&S will be retained to supply the stores in addition to whatever Aldi can supply. We'll have to see, I'm not sure if Aldi themselves has a great plan for what to do with those unconverted stores.
Maybe Aldi will also use its acquisition of SEG to relocate their U.S. headquarters from the Chicagoland area to SEG's headquarters in Jacksonville. It'll be closer to it's biggest market as Aldi, as well as Winn-Dixie.
DeleteI agree in that I doubt this is just a real estate play. Between Bed Bath & Beytone and Christmas Tree Shops, there are plenty of Aldi-sized spaces coming online. I honestly think Aldi is going to try their hand at a full-line grocery concept.
DeleteThat being said, if they find it to be a success, then I don't see the "Winn-Dixie" name sticking around. I think it would be far more likely to become "Aldi Superstore" or something similar in order to differentiate it while staying within the Aldi brand.
I sure hope they don't drop the Winn-Dixie nameplate, especially for "Aldi Superstore." Besides, I thought the differentiation between store formats has been phased out by most retailers. If "Dixie" is triggering and Aldi wants to pander to snowflakes, there's always Winn-Lovett’s or Kwik Chek. No need to reinvent the wheel like so many rebrandings try and fail at.
DeleteEvery time a new grocer enters Florida, news outlets like the Business Journals, Business Insider, etc., typically view it as a threat to Publix. "XYZ Grocer is Coming to Florida; Publix Should Be Terrified." It happened with Trader Joe's, Lucky's, Earth Fare, Amazon's acquisition of Whole Foods (sooooooo overhyped nationally), and Kroger Delivery. I am seeing this with the comments so far here.
DeleteMeanwhile, the only store that has suffered with new entrants to the Florida market has been WINN-DIXIE.
Now, it won't be Winn-Dixie this time unless the real estate grab and mass conversions thing does come true. But I feel like WALMART is shaking more right now than Publix.
I've known people going back to my college days who would turn up their noses at buying food at Walmart or shopping there in general. But when Aldi came along and they needed to cut spending, they fell in LOVE with Aldi and have absolutely no shame shopping at the discounter. Using media code language, these are "suburban moms." The Aldi fandom is evident across the coupon/mommy/budgeting blogosphere and influencer spaces too. If they need their national brands at the best everyday prices, I guess they have a nice middleman through Walmart delivery/pick-up to avoid the in-store experience. Now if Aldi can come along and spruce up the Winn-Dixie image while lowering everyday prices that are already on par with Publix despite public perception, that could eat away at Walmart's market share in Florida.
I think a rebrand would be less about any controversy in the name "Winn Dixie" and more about saving on advertising and promotional costs by using a more unified brand.
DeleteI’ve been giving this a lot of thought since yesterday.
ReplyDeleteI keep hearing people confused about why a retailer like Aldi would want to acquire a full line supermarket. They’re looking at this the wrong way entirely. It’s simple, this is a real estate acquisition entirely.
I do not believe for one nanosecond that Aldi intends to run any Winn Dixie or Harvey’s stores in tact and as is by any stretch of the imagination.
The idea of having both is pure fluff and that’s what the media and press are reporting because it’s what Aldi says.
It’s pure P.R. If Aldi came in and immediately told all the staff “adios” and shut down the stores it would look bad on them.
They’ll operate the stores for a while. Maybe because there’s some stipulation in the contract that says they do or maybe they hope it will make everyone will forget for a while.
But it entirely makes sense if you look at it from a practical standpoint.
I’m sure Aldi plans to do the same thing with the vast majority of these locations.
1.) gut them
2.) split them in half or thirds depending on square footage
3.) open the typical Aldi in part identical to their new builds and sublet and lease the rest.
They’ve done this before in some locations.
A year gets them time to get the planning, permitting and engineering phase done. Keeping the stores open during this time keeps them from losing money on empty stores.
Then comes the liquidation, layoffs and demo.
It won’t take long to replace these with Aldi. Aldi has no service departments, and little in the way of equipment. I believe all their refrigeration is self contained (no compressor rooms or underground lines).
I’m not happy about this in multiple levels. Quite depressing. It’s sad to see the Winn Dixie name go and it’s memorable store models.
It’s sad that Publix will be the only full line grocer left in the state. Nobody to compete with them. But they too are expanding and should be careful that they too don’t find themselves one day like Albertsons or Winn Dixie.
What stinks also is a lot of small Florida towns don’t even have a Publix. So when Aldi comes in, no more full service store. No meat department, no deli, no bakery.
I’m towns like mine, we already have an Aldi and two Winn Dixie’s, one right nearly across from Aldi.
No way Aldi would try to be like Winn Dixie did when acquiring Sweetbay and operate to adjacent stores. The FTC won’t allow it anyway, so I’m cases like that there will almost certainly be a blighted empty store.
And with one less competitor out of the game I’m not even sure FTC would allow the other WD to become an Aldi or not.
And we’ve already done the game of converting an empty Golds Gym and Books A Million into other retailers. Now we have an empty mall, empty Bed Bath and Beyond and possibly two empty Winn Dixie stores to come along with that. What a mess!
If I was with Winn Dixie I’d be making my exit now. I was reading but not confirmed that Aldi already has plans to close all remaining Winn Dixie pharmacies by December.
Aldi already has over 200 locations in Florida. Winn-Dixie has posted gains for the past couple of years. They've finally begun building new stores and investing in older ones. If this was simply a real-estate play for a few more locations primarily in Florida, Aldi likely overpaid. It would have made more sense for them to purchase a similar format store like the struggling Lidl or moving into the numerous recently vacated Bed Bath and Beyond/Chrsitmas Tree Shops/Books A Million stores that have all recently come online.
DeleteI suppose time will tell, but I do believe that Aldi made this purchase wanting to expand into full-line/traditional grocery stores.
I've got to say, I agree with you Swifty! I'll hold off more of my opinions until later though . . .
DeleteI can’t believe that ALDI bought Winn Dixie and Harvey’s. I never thought in a million years that it would happen. Hopefully they won’t phase out Chek soda and eventually wipe out the Winn Dixie brand. I know that SEG has been working really hard to clean up the chain’s image, but sometimes I wonder if they were just doing it to make WD and Harvey’s presentable to be sold off to another chain, if that makes any sense.
ReplyDeletePretty much everyone I’m reading from on Facebook believes this was entirely a real estate grab and that any stores get converted to Aldi.
ReplyDeleteThe joke with any remodel or new store opening is “future Aldi! 😂” said with utmost confidence.
Yet there doesn’t seem to be much if any thought as to how such a plan makes little sense.
It’s as of people don’t realize that Aldi already exists in many of these areas that Winn Dixie already does as well, effectively making many of the acquisitions pointless.
There is also the speculation that Aldi will sell off the locations that aren’t useable to another retailer, ie an independent or Publix.
But again, doesn’t make sense. I can’t think of an independent that would be able to manage a full size supermarket. Many have tried and left. And again, the nicer Winn Dixie stores that Publix might want are many times already located in towns where Publix already exists. So I don’t see them wanting any of the locations that Aldi wouldn’t.
The whole situation to me makes no sense and I cannot figure it out, so I haven’t given it much more thought and figure that we will find out Aldi’s true intentions as things move along.
If C&S wasn't tied up in the Kroger/Albertsons mess, they probably would have been the best buyer for Winn-Dixie, as they already do all distribution for SEG and run traditional supermarkets of their own. However, C&S had to get preoccupied with that, and somehow Aldi was able to slip in an offer to SEG.
DeleteIf Aldi was only interested in the real estate, this will for sure go down as one of the worst supermarket acquisitions in history, right alongside the merger of Albertsons and Kroger. I can think of Aldi stores directly across the street from an existing Winn-Dixie, so why would Aldi want to have a store across the street from another location? Sure Publix does that, but Aldi doesn't anywhere else in the country. I know Aldi's presence in areas like Alabama, Mississippi, and Louisiana is pretty light or just beginning, so maybe Aldi bought Winn-Dixie to convert some of those stores in WD's outer regions? Maybe some weaker WD and Harvey's stores in Florida will be converted too, but converting all of them just doesn't make any sense, unless in 5 years or so Aldi again sells off what's left of WD to C&S (for example) after they took all the locations they wanted to convert. Aldi hasn't done anything like this before, so I can't jump to conclusions myself about what will happen to WD either. The only thing I do know is not a lot of people are happy about this deal, as most are fearing the worst. However, there are too many possibilities and not enough information to come to an answer right now, so we really will have to just wait and see.
Well I do think C&S may have a fighting chance if Kroger-Albertsons gets struck down.
DeleteLate to the party here, and while I can't say much since I've had zero experience with Winn-Dixie this sounds like a strange paring move since SEG is on the upswing lately. Let's hope this lasts and the brands don't get erased.
ReplyDelete