Popular supermarket chain closing hundreds of stores

Hundreds of others will undergo a massive change.

Mar 15, 2025 - 13:55

Popular supermarket chain closing hundreds of stores

People have a very strange loyalty to the supermarket chains they grew up with. Nearly every region has its own grocery store, chains and many have quirks that locals have come to appreciate.

On a very broad level, people across Florida and parts of the south, have an insane loyalty to Publix. They also believe, really truly believe, that the chain has really good subs.

In reality, Publix has good subs for a grocery store chain. Anyone from New England or New York, or really any place with a tradition of good sandwiches knows that "Pub Subs," as they are known, are fine, but nothing special.

To many living within Publix's very large regional footprint, that statement is sacrilegious, but it's reality. The grocery chain has acceptable ready-to-eat and made-to-order food, but it's nowhere near as good as its biggest fans believe.

Still, what people in the south feel about Publix gets duplicated all over the country. Americans have a loyalty to their local supermarkets even when those chains are not very good, or at least are lacking in key areas.

That makes it very traumatic when a regional grocery brand gets closed, even if it's replaced by a chain that's ostensibly better.

People have loyalty to supermarket chains they grew up with.
Image source: ALEX EDELMAN/AFP via Getty Images

Over 200 Winn-Dixie locations are going away

Aldi has been growing very quickly in the United States. The discount grocery chain plans to open over 225 new stores in 2025 as part of a broader five-year US growth plan.

"This is the most stores ALDI will open in one year in its nearly 50-year U.S. history as more shoppers than ever look to save up to 36% on an average shopping trip," the company shared in a press release.

Aldi has been trying to grow quickly to meet higher consumer demand for discount grocery chains driven by inflation;

"The new stores will open through a combination of organic growth and converting select Winn-Dixie and Harveys Supermarket stores to the ALDI format. In total, ALDI will convert approximately 220 Southeastern Grocers locations to the ALDI format through 2027," it shared.

More closings:

This is a big step in Aldi's plans, according to CEO Jason Hart.

“Converting the remaining locations to the ALDI format is critically important to our nationwide commitment to help shoppers fill their carts with quality groceries for less. As shoppers continue to feel sticker shock at the checkout, the value ALDI delivers can’t be beat,” added Hart.

These conversions, however, do not mean the end of the Winn-Dixie and Harvey's brands.

Winn-Dixie and Harveys will live on

The transaction between Aldi and Winn-Dixie is somewhat complicated. A version of the company that sold the discount grocery chain, the Winn Dixie and Harveys brands, has purchased back some of its former stores.

"A consortium of private investors, spearheaded by the current CEO and President of Southeastern Grocers Inc. (SEG), Anthony Hucker, and C&S Wholesale Grocers, today announces it has acquired Southeastern Grocers and its Winn-Dixie and Harveys Supermarket banners from ALDI U.S. ALDI U.S. previously purchased Southeastern Grocers in March 2024," the new company explained in a press release.

This deal will allow the Winn-Dixie and Harveys names to live on and keep serving some communities.

The agreement includes the acquisition of SEG grocery and liquor store operations under the Winn-Dixie and Harveys Supermarket banners. This includes approximately 170 grocery stores in Alabama, Georgia, Louisiana, Mississippi and Florida, as well as the existing Winn-Dixie liquor store business.

Southeastern Grocers will also continue to operate the Winn-Dixie and Harveys locations, which are slated to become Aldi stores until they are converted.

"For 20 years, we have worked together to feed our communities. C&S has remained steadfast in our commitment to our transformation strategy, which includes being an industry-leading grocery wholesaler and retailer. Our unrelenting focus on long-term growth continues with an exciting opportunity for C&S to invest in and collaborate deeply with the retail market. C&S will leverage our best-in-class capabilities to provide value and quality to shoppers as we continue advancing our legacy of braggingly happy customers," said CEO Eric Winn.