ALDI's acquisition of Southeast Grocers' Winn-Dixie and Harveys Supermarket banners made news in August.
It was a massive year in the grocery industry for so many reasons – from acquisitions and mergers to IPOs and new stores in new states. Here’s a breakdown of the most-read stories from Progressive Grocer in 2023.
Mergers, Acquisitions and Sales Galore
The pending merger between The Kroger Co. and Albertsons Cos. has been an imposing aspect of the food retail world this year, and the announcement that C&S Wholesale Grocers is acquiring 413 stores from the two companies to satisfy potential antitrust issues with the Federal Trade Commission (FTC) made waves back in September. The New Hampshire-based wholesaler agreed to buy the stores, which span 17 states, along with eight distribution centers and two offices. An FTC decision on the merger is expected in January.
In other news that rocked the grocery industry, it was divulged in August that ALDI entered into a definitive agreement with Southeastern Grocers to acquire its Winn-Dixie and Harveys Supermarket banners as part of a larger divestiture. The acquisition includes approximately 400 Winn-Dixie and Harveys Supermarket stores throughout Alabama, Florida, Georgia, Louisiana and Mississippi. ALDI was later chosen by PG as the publication’s Retailer of the Year.
“Like ALDI, Winn-Dixie and Harveys Supermarket have long histories and many loyal customers in the Southeast and we look forward to serving them in the years to come,” said ALDI CEO Jason Hart after the announcement. “The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills. The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach a total of more than 2,400 stores by year-end.”
Back in June, Heritage Grocers Group, parent company of Cardenas Markets and Tony’s Fresh Markets, completed the acquisition of El Rancho Supermercado. The move was part of a larger growth strategy for Heritage, and increased the grocer’s store count from 85 to 113. The group now operates 57 stores under the Cardenas Markets banner in California and Nevada, 21 stores in Illinois under the Tony’s Fresh Market banner, seven Los Altos Ranch Market stores in Arizona, and 28 total El Rancho Supermercado stores.
More recently, but no less noteworthy, Foxtrot Market and Dom’s Kitchen & Market announced that they are merging. Both companies are headquartered in Chicago and are known for their curated, locally sourced assortments and gathering-place atmosphere. Foxtrot and Dom’s agreed that they will reorganize under a new entity called Outfox Hospitality, which will be helmed by Foxtrot CEO Liz Williams.
Finally, PG reported in July that Walgreens acquired 120 pharmacies in Texas, Louisiana and Arkansas, including pharmacy customer prescription files and related pharmacy inventory, from regional retailer Brookshire Grocery Co. The vast majority of these locations are being converted to Walgreens pharmacies that will operate inside of Brookshire Grocery’s stores.