The news about Winn Dixie’s acquisition by Aldi is all over the news, and frequent shoppers at the popular supermarket chain might be wondering- Is Winn Dixie going out of business?
Winn Dixie has been in business for as long as you can imagine and has been through all kinds of ups and downs during its course of time.
But is it time to finally say goodbye to the brand? Keep on reading to find out!
About Winn Dixie
Winn Dixie is an American supermarket chain that was founded by William Milton Davis in 1925 in Jacksonville, Florida. Winn-Dixie was especially known for its private label soft drinks brand that produced more than twenty soft drink flavors.
The supermarket grocery chain has seen many ups and downs during its long course of time. Right from undergoing brand name changes to bankruptcy and acquisitions, it has seen it all.
In 2005, Winn Dixie filed for bankruptcy, which left the chain with fewer stores than it had before.
Then, in 2011, a Southeastern supermarket chain, BI-LO, announced that it would be purchasing Winn Dixie, and a year later, Winn Dixie became a wholly-owned subsidiary of Southeastern Grocers.
Today, the company operates over 400 stores in Louisiana, Alabama, Mississippi, Georgia, and Florida and is in the process of being acquired by Aldi.
Keep on reading to find more details about the acquisition.
Aldi to Acquire Winn Dixie
On 16th August 2023, Aldi announced that it has come into a definitive agreement to acquire Winn-Dixie and Harveys Supermarkets. The acquisition includes around 400 Winn-Dixie and Harvey locations across Florida, Alabama, Louisiana, Georgia, and Mississippi.
However, Winn Dixie’s pharmacy department will not be a part of this deal, and its pharmacy business will go to Walgreens or CVS.
“Prior to the closing of the proposed merger agreements recently announced, Southeastern Grocers has entered into agreements to transfer prescription files to certain CVS Pharmacies and Walgreens,” Meredith Hurley, senior director of Communications and community for Southeastern Grocers, said.
“These agreements will help ensure that our pharmacy customers continue to have access to pharmacy services without interruption.” he also added.
The acquisition is expected to close in the first half of 2024, and until then, Southeastern Grocers will continue to operate Harveys and Winn Dixie under their respective banners.
Why Is Aldi Acquiring Winn Dixie?
The biggest reason why Aldi is acquiring Winn Dixie is because of Aldi’s long-term plan to expand across the U.S. The company even announced earlier that it is planning to open 120 new stores and plans to have 2,400 stores by the end of 2024. The merger will allow Aldi to get closer to its goal.
“The Southeast is a big part of our growth initiative across the country,” Hart said. “In fact, it [was] a focus of our growth initiative even before this acquisition — so it was the perfect kind of confluence of factors.”
The acquisition would also serve as a perfect real estate leasing opportunity for Aldi, as the stores require half the space of a traditional grocery chain.
How Southeastern Grocers Will Benefit From The Acquisition?
Both Winn Dixie and Harvey, along with their parent company, Southeastern Grocers, have been plagued by financial difficulties for years now.
For example, in 2018, Southeastern Grocers planned on filing for bankruptcy and to shut down 94 stores. In 2005, even Winn Dixie closed down 900 of its stores and laid off 30% of its workforce.
The acquisition would help these companies find their footing back into the business with access to Aldi’s solid supply chain and investments.
Is Winn Dixie Going Out Of Business?
No, Winn Dixie is not going out of business. However, Aldi will be acquiring Winn Dixie, and the acquisition is expected to happen in the first half of 2024.
Winn Dixie and its parent company have been struggling financially for a long time now, so the acquisition would allow these companies to revive and will also help Aldi achieve its expansion goal.
Changes That Will Happen After Winn Dixie’s Acquisition
As a part of the acquisition, a lot of changes will be made.
- For example, over the coming year, Aldi will convert a significant amount of Winn-Dixie and Harvey’s stores to Aldi’s bare-bones format.
- Even after the acquisition, Aldi will not alter the red-and-white Winn-Dixie branding, and the branding of the acquired stores will remain the same.
- Under the umbrella of Aldi, Winn Dixie will have access to an efficient supply chain and deeper pockets, which will improve their previous dire financial condition.
- Aldi plans on operating Winn Dixie’s locations with the same focus and care as that of its original stores.
In conclusion, Winn Dixie’s acquisition is actually a positive thing for both companies.
This move will help Winn Dixie deal with its financial setbacks and will allow it to continue operating under the umbrella of Aldi and its successful business model.
So, we hope now you have the answer to your eager question- Is Winn Dixie going out of business?
Who owns Aldi?
The answer to who owns Aldi is a bit more complicated than you would expect. The ownership of Aldi is associated with the Albrecht family, but Aldi operates as two separate entities.
Who owns Winn Dixie?
Winn Dixie was originally founded by William Milton Davis in 1925, but Southeastern Grocers bought Winn Dixie in 2011 for $560 million and has owned the company ever since. However, by 2024 Aldi would be the owner of Winn Dixie.
What will happen to Winn Dixie's employees after Aldi's acquisition?
No announcement has been made yet regarding what will happen to the employees after Aldi’s acquisition.