Aldi is about to get even bigger—adding 400 more supermarkets

Aldi, the German grocer known for its ardent fan base and budget-friendly prices, is continuing its rapid expansion. On Wednesday, the chain announced it will acquire Winn-Dixie and Harveys Supermarket, adding 400 stores, as part of its massive growth efforts. The terms of the deal haven’t yet been disclosed. 

Aldi, which has more than 10,000 stores worldwide, had previously announced plans to add 120 new stores in the U.S., with the goal of surpassing 2,400 in 2023. The ambitious goal has the store set to become one of the fastest-growing grocers in the U.S.

Adding the Winn-Dixie and Harveys stores will grow Aldi’s presence in southern states of Georgia, Florida, Alabama, Louisiana, and Mississippi, where the company claims it has invested $2.5 billion since the 1990s when it first arrived in the Southeast. The business opened a new distribution center in Loxley, Alabama, earlier this year to support the expansion efforts. 

“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 Jason Hart, CEO of Aldi USA, in a statement. “The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills.”

The grocer’s growth comes at a time when grocery prices have been surging across the country. With inflation at all-time highs, and food insecurity ramping up more than ever, families are constantly seeking out better prices. That’s why, while stores like Costco, which cater to higher-income shoppers, have seen a downturn on profits this year, discount mega stores like Aldi and Walmart are watching their grocery stay busy with deal-hunting shoppers. 

Hart noted that some of the supermarkets would retain the Winn-Dixie and Harveys branding. “Aldi will operate Winn-Dixie and Harveys Supermarket stores with the same level of care and focus on quality and service, as we also evaluate which locations will convert to the Aldi format to better support the neighborhoods we’ll now have the privilege of serving,” Hart said in a statement. “For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores.”

The deal is expected to close in the first half of 2024.