By Abigail Summerville
NEW YORK (Reuters) – A group led by C&S Wholesale Grocers is closing in on a deal to buy nearly 350 Winn-Dixie grocery and liquor stores from German discount chain Aldi’s U.S. unit, according to people familiar with the matter.
C&S, along with members of Winn-Dixie’s management team, will take over about 170 Winn-Dixie grocery stores and another 170 Winn-Dixie liquor stores as part of a deal that could be announced as soon as Friday, one of sources said, requesting anonymity since the matter is confidential.
Aldi acquired Southeastern Grocers in 2023, giving it ownership of roughly 400 Winn-Dixie and Harvey’s Supermarket stores as well as around 170 liquor stores. The grocery store operator has been working with investment bankers for several weeks to divest some of the Winn-Dixie stores, four sources said.
Aldi plans to rebrand the rest of the stores it acquired from Southeastern Grocers as Aldi stores over time, the sources added.
Aldi and C&S did not immediately respond to requests for comment.
Founded in 1925, Winn-Dixie operates grocery and liquor stores in Alabama, Florida, Georgia, Louisiana and Mississippi.
C&S, founded in 1918, is a supplier that has been seeking to significantly expand into grocery retail. It currently operates about two dozen stores under the Grand Union and Piggly Wiggly brands.
Last year, C&S’s deal to buy 579 stores from grocers Kroger and Albertsons fell apart when Albertsons terminated its planned $25 billion sale to Kroger, after a judge sided with the U.S. Federal Trade Commission’s move to block the supermarket megadeal.
Aldi traces its origins to the Albrecht Family that operated grocery stores in Germany in the early 1900s. In 1960, Albrecht brothers Karl and Theo split the company into Aldi Nord and Aldi Süd.
Aldi Süd opened its first Aldi store in the U.S. in 1976 and has since expanded to more than 2,400 stores in over 35 states. Aldi Nord acquired the popular U.S. grocery-store chain Trader Joe’s in 1979.
(Reporting by Abigail Summerville in New York; Editing by Kirsten Donovan)
