Aldi is buying Winn-Dixie

[MichaelB]

Aldi is a popular store with many mentions here at ER Forum. News reports today state Aldi will take over Winn-Dixie and Harvey stores in the US. From CNBC https://www.cnbc.com/2023/08/16/aldi-to-acquire-winn-dixie-and-harveys-supermarket-stores.html

The German grocer has entered into an agreement to buy nearly 400 locations from Winn-Dixie and Harveys Supermarket.

The Southern-focused acquisition will convert some stores to the Aldi format, while others will continue to operate as Winn-Dixie and Harveys Supermarket grocery stores.

The deal underscores the resiliency of the supermarket industry, which has largely been immune to the macroeconomic conditions straining other industries.

This is a big expansion for Aldi. My sense is Winn-Dixie locations are larger than Aldi, so why they need the extra space is a question - although they may be testing a larger footprint.

I think leaving some Winn-Dixie stores will lead to a giant culture clash within the Aldi organization. It’ll sure be an interesting time for the management of those stores.

 

[NW-Bound]

It surprises me that in a low-profit-margin business like grocery, the competition is fierce, and there are always new entrants.

It's the same in airline business. Airlines come and go all the time.

It shows how hard it is to make money. I am glad I don't have to work as hard. Oh wait! I am not working at all.

 

[pacergal]

We have none of those stores here, wish we did. There is an Aldi right next to the motel we stayed at when visiting my Grandmother that we used to go too. It was nice.

Perhaps some of them will come and take over the many empty Alberstons left from the Safeway/Albertsons merger. Some of those have become Trader Joes, most are Planet Fitness or Hobby Lobby.

 

[Gotadimple]

Perhaps some of them will come and take over the many empty Alberstons left from the Safeway/Albertsons merger. Some of those have become Trader Joes, most are Planet Fitness or Hobby Lobby.

It has been a while since Safeway was acquired by Albertsons. If no other grocer has moved into the space then there may be too much competition in the area to support another store.

 

[JoeWras]

This is a big expansion for Aldi. My sense is Winn-Dixie locations are larger than Aldi, so why they need the extra space is a question - although they may be testing a larger footprint.

I think leaving some Winn-Dixie stores will lead to a giant culture clash within the Aldi organization. It’ll sure be an interesting time for the management of those stores.

They may also split the store. That's what happened here when Aldi bought the former Kroger space. It split the store and kept 2/3 Aldi, and 1/3 a retail shop for rent.

The culture clash should be fascinating! We prefer Lidl over Aldi, although both do in a pinch. Lidl carries over so many German habits. For instance, the Lidl bathrooms are great. They have these beautiful top-to-bottom doors on the toilet stalls that you never see in the US. I only saw them at the Munich airport. Probably the same vendor.

Our local Lidl also did pricing to their habit with prices over the goods instead of under. Maybe it is just a corporate Lidl thing. They finally broke that habit after a few years -- probably because of all the confusion.

I should add that I think this news may be bad for Lidl. They may get out. Their footprint in the US has been tenuous at best. We'll see!

 

[MichaelB]

They may also split the store. That's what happened here when Aldi bought the former Kroger space. It split the store and kept 2/3 Aldi, and 1/3 a retail shop for rent.

Good point, which I had not considered.

 

[ncbill]

the closest Aldi here is...not very clean & also not that close (~10 minutes) but via a parkway with heavy traffic.

but the Lidl that opened up 5 minutes away via surface streets is wonderful so we get as much as we can there.

no quarter deposit for the shopping cart either.

 

[Montecfo]

Interesting move.

 

[EarlyandLate]

I sure hope that Aldi does not change for the worst. Aldi really seems to have efficiency down to a science. Whenever I go into a Kroger or Publix, I'm struck by the complexity of the stores and the number of employees it requires to run them.

 

[Chuckanut]

I simply want an Aldi store near me. We desperately need some real discount competition in my area. If the Safeway/Kroger merger goes through, it will be worse.

Give me an Aldi or a Lidl. Soon, please.

 

[braumeister]

Someone in Kroger management must be gnashing their teeth at the one that got away!

I agree that a split seems most likely. When we got our first Aldi in my neighborhood, they bought a much larger store but only use part of it, with other little companies sharing the rest of the building.

 

[CardsFan]

We have 3 Aldi's within 4 miles of our place. All are clean and well run, so we just go to the closest to where ever else we are going. I can hit Aldi's, Walmart and Fresh Thyme without going 6 miles round trip.

 

[Gumby]

Aldis is my main grocery because they are by far the least expensive. Although they do have a more limited selection. After I visit Aldis, I go to the Big Y next door to round out my shopping list. If Big Y doesn't have it, I can check the ShopRite and Stop & Shop, which are within a half mile. Only if all else fails will I go to Whole Foods.

 

[jazz4cash]

I fear Aldi is growing too fast and will be unable to maintain the features we like about them. They seem to be the only grocery store chain that is growing. When they moved into a space vacated by Safeway they rented half the space out to Petco. When I first started going to Aldi in the ‘80’s they had moved into the old Safeway stores built in the 50’s.

 

[11522914]

I fear Aldi is growing too fast and will be unable to maintain the features we like about them. They seem to be the only grocery store chain that is growing. When they moved into a space vacated by Safeway they rented half the space out to Petco. When I first started going to Aldi in the ‘80’s they had moved into the old Safeway stores built in the 50’s.

I had the same thought. Love Aldi.

I used to go to Lidl too but they were always out of items. Literally rows of empty shelves. I believe they had poor management in that particular store.

When they built a brand new Aldi near my house they always were full of merchandise so I never went back to Lidl.

 

[38Chevy454]

To me in FL at my snowbird place, Winn Dixie always seemed higher priced. So maybe some Aldi efficiency improvements will help the WD stores be more inline with Publix. Pure Aldi stores do have lower prices than Publix. Be interesting to see how it shakes out.

 

[Venturer]

Around here N.Ga. Aldis is great,Kroger is ok but Publix is too high priced, WalMart is a giant scumbag which is dirty and not well stocked. Probably because of the mngmt. and the clientel. We also have Food City which is more countryfied, having some items that aren't easily found in th others. There isn't a Winn-Dixie in any of the towns around here for miles.

 

[NW-Bound]

No Winn-Dixie here, but Aldi has made a strong presence here in the metropolitan Phoenix. Last year, there was a big fanfare about Aldi opening 2 stores here. I drove my wife to a store 15 miles away to take a look after the grand opening. Earlier this week, on an errand my wife spotted a new Aldi nearer to us. At home, I looked at Google Maps, and lo and behold Aldi now has 10 stores.

Per my wife's request, I just took her to that Aldi that she spotted, so she could do some shopping. Yes, more food to load into the fridge.

I looked around and saw that they had Blue Bell ice cream at $8.32 for 1/2 gallon. That's not as low as the $7 I saw recently at another large grocery chain, and posted in another thread.

Other prices looked good though.

 

[38Chevy454]

I looked around and saw that they had Blue Bell ice cream at $8.32 for 1/2 gallon. That's not as low as the $7 I saw recently at another large grocery chain, and posted in another thread.

Other prices looked good though.

I find Aldi prices on name brand stuff to not be any real savings. It's their house brand stuff where the savings are. We've been happy with Aldi brand quality for the most part.

 

[11522914]

I find Aldi prices on name brand stuff to not be any real savings. It's their house brand stuff where the savings are. We've been happy with Aldi brand quality for the most part.

That's been my experience also. I can always beat their name brand prices by buying it at Publix with their b1g1 free sales.

 

[CardsFan]

I find Aldi prices on name brand stuff to not be any real savings. It's their house brand stuff where the savings are. We've been happy with Aldi brand quality for the most part.

We have noticed the same on the name brands, and also like most of the house brands.

I guess they stock some name brands, because that is what some folks want. I also wonder if they do it to remind folks of the name brand prices.

On a side note, just to prove I don't like ALL Aldi's house brands: I like cottage cheese and will ONLY buy Prairie Farm (FWIW, Aldi's does not carry it). It's pricey, 2-3 times what I would pay for the Aldi's brand. Worth it to me.

 

[JoeWras]

Anybody remember the generic food movement of 45 years ago? White labels with black printing? It never went away, it just turned into house brands.

Over the years, they have improved quality drastically. Some of that generic stuff my mom bought was not just bad, it was revolting. Like she bought green beans and literally got nothing but the tops with stems attached!

 

[11522914]

Anybody remember the generic food movement of 45 years ago? White labels with black printing? It never went away, it just turned into house brands.

Over the years, they have improved quality drastically. Some of that generic stuff my mom bought was not just bad, it was revolting. Like she bought green beans and literally got nothing but the tops with stems attached!

Wow, that brings back memories.

I was a grocery store manager in the late 70s. I remember when all of a sudden these items showed up. I didn't order them as they were all new items.

I remember green beans, macaroni and cheese, laundry detergent and many others. White labels with black printing. How appetizing does that look. But they were cheaper in the crazy inflation of the 70s.

 

[JoeWras]

I remember green beans, macaroni and cheese, laundry detergent and many others. White labels with black printing. How appetizing does that look. But they were cheaper in the crazy inflation of the 70s.

And that's exactly the point. We're also discussing this in the "Examples of inflation" thread.

In the late 70s, generics popped up to to fight inflation.

In the early 2020s, house brands are popular to fight inflation.

 

[Dawg52]

Winn Dixie is my go to store. We have an Aldi but it's across town in a busy area so I haven't been. Guess I will find out if I like Aldi soon enough. The only other option we have is a Walmart Market store close by as well. We do have a Dollar General Market store but the produce is inconsistent.