THE FRIDAY 5: Kroger’s $1B Gamble; Big Lots! Is Back
Welcome to The Friday 5, Progressive Grocer’s weekly roundup of the top news and trends in the food retail industry. Each Friday, we’ll take a look at the stories that are most important to our readers and also keep tabs on the trends that are poised to impact grocers.
1. Big Lots! Is Back
This week, discount retailer Variety Wholesalers Inc. revealed the first wave of openings for its newly acquired Big Lots! locations, which started on April 10 with nine stores across six states, including Kentucky, Tennessee and Virginia.
Big Lots! filed for bankruptcy in September 2024, and a few months later agreed to a sale transaction with Gordon Brothers Retail Partners that enabled the transfer of Big Lots assets — including stores, distribution centers and intellectual property — to other retailers and companies, including Variety Wholesalers, which acquired 219 stores.
"We're thrilled to bring the Big Lots! brand back to life by offering more deals than ever, lots of famous brands and a new apparel department for the entire family,” said Lisa Seigies, president and CEO of Variety Wholesalers. “We’re opening stores quickly so we can serve the community. We know the stores won’t be perfect to start, but each week we’ll add more new products as we build towards the grand-opening celebration in the fall. Every time a customer visits Big Lots! we want them to find something new and exciting!"
In addition to the initial nine locations, Variety Wholesalers plans to reopen Big Lots! stores in North Carolina, Alabama, Florida, Georgia, Ohio, Michigan, Pennsylvania, South Carolina and West Virginia, among other states.
2. Southeastern Grocers Conducts Layoffs Amid Restructuring
Readers were interested this week in the news that Southeastern Grocers (SEG) is restructuring its store support center in Jacksonville, Fla., and field support teams across the Southeast, both of which have resulted in employee layoffs. The move comes a few months after a consortium of private investors, led by current SEG CEO and President Anthony Hucker and C&S Wholesale Grocers, acquired Southeastern Grocers and its Winn-Dixie and Harveys Supermarket banners back from ALDI U.S.
SEG did not disclose how many employees are part of the layoffs, but did recognize the difficult but necessary decision to restructure its business.
“Taking action now is the most prudent thing to do for the long-term health of the business, as we know that we will progressively operate a smaller fleet of stores following previously agreed conversions through 2027,” a company statement sent to Progressive Grocer noted. “Aligning our structure with the direction of our business is essential to strengthening our operations, ensuring we can continue to serve our customers, support our stores and position our company for long-term success.”
3. Ahold Delhaize USA Brings on New Tech Talent
A high-profile hire at Ahold Delhaize USA made news this week, with the company bringing on Ann Dozier, a seasoned IT executive in the food industry, to serve as its new chief information officer. Dozier officially joined the company in February and now oversees all aspects of IT for its U.S. businesses.
Before joining Ahold Delhaize USA, Dozier was SVP, chief information and technology officer for Miramar, Fla.-based distributor Southern Glazer’s Wine and Spirits.
4. Kroger’s Big Gamble on Failed Albertsons Merger
It recently came to light that The Kroger Co. spent more than $1 billion throughout its failed journey toward merging with Albertsons Cos. In its annual report regulatory filing with the U.S. Securities and Exchange Commission on April 1, Kroger reported that it spent $684 million in 2024 on “merger related costs,” which included “third-party professional fees (outside experts, such as lawyers) and credit facility fees (borrowing costs).”
The failed merger, which was originally announced in October 2022, cost Kroger $316 million in 2023 and $44 million in 2022, according to a Cincinnati Enquirer report.
Kroger remains wrapped up in legal battles with both Albertsons and C&S Wholesale Grocers, and last month filed a legal response to Albertsons’ earlier lawsuit against it, which claimed that Kroger failed to exercise “best efforts” and to take “any and all actions” to obtain regulatory approval of the companies’ proposed merger deal. Kroger is now claiming that while it was working to seek regulatory approval and close the merger, Albertsons was engaging in a secret campaign alongside C&S Wholesale Grocers to pursue its own regulatory strategy, which ultimately undermined Kroger's efforts.
5. PG Names Most Sustainable Grocers
In our annual list of the 10 Most Sustainable Grocers, PG is spotlighting companies that impressed us through the sheer breadth, depth and innovation of their sustainability measures. While eco-friendly moves that help the planet are important, we have also included the chosen companies’ efforts to improve and maintain the health and well-being of their associates and surrounding communities.
