Aldi is set to embark on a major expansion in 2025 while simultaneously selling back some of the stores it acquired in 2023.
The company plans to open 225 new locations next year, marking its fastest expansion yet. This growth will come from both brand-new stores and the conversion of select Winn-Dixie and Harveys Supermarket locations.
In 2023, Aldi acquired these two grocery chains, which collectively operate around 400 stores across the American South. Of those, approximately 220 will be rebranded as Aldi locations, while about 170 stores will be repurchased by a group that includes the chains’ former owner.
C&S Wholesale Grocers and Southeastern Grocers have already resumed day-to-day operations of the locations they reacquired.
“When we announced our acquisition of Southeastern Grocers, we committed to keeping a significant number of Winn-Dixie and Harveys Supermarkets operational. We’re delivering on that promise while also fueling Aldi’s expansion,” said Jason Hart, Aldi’s CEO, in a statement.
Aldi aims to convert and reopen 100 Winn-Dixie and Harveys locations by the end of 2025, with the remainder expected to transition by 2027. Until then, Southeastern Grocers will continue managing these stores on Aldi’s behalf.
Beyond the South, Aldi is expanding its presence along the East Coast and Midwest while also entering new markets like Las Vegas. In March, the company unveiled a $9 billion growth strategy targeting 800 new locations by 2028.
This store reshuffling follows the collapse of a $25 billion merger between grocery giants Kroger and Albertsons. The failed deal had included a $2.9 billion sale of 579 stores to C&S Wholesale Grocers, intended to alleviate federal antitrust concerns.
The Federal Trade Commission ultimately sued to block the merger, leading to its dramatic downfall in December. Albertsons then sued Kroger for over $600 million for breach of contract, a claim Kroger has dismissed as baseless. The legal battle remains ongoing.
While executives haven’t directly linked Aldi’s moves to the failed merger, C&S CEO Eric Winn emphasized that the buyback of stores aligns with the company’s broader expansion goals.
“Our commitment to long-term growth remains strong, and this opportunity allows C&S to invest further in the retail market,” Winn said.
Source: Bisnow