Winn-Dixie Scaling Down Stores to Set Up for Success

Winn-Dixie plans to close four stores in Alabama in the coming weeks, adding to a recent closure in Georgia. These closures are not part of the 220 stores currently being operated on an interim basis by Southeastern Grocers before they transition to the Aldi banner. The retailer stated that these decisions reflect a broader effort to position the business for long-term stability and sustainability. Despite the closures, Southeastern Grocers has reiterated its goal to continue growing its footprint in the Southeastern United States. In Alabama, where Winn-Dixie operates around 30 stores, its second-largest market after Florida, the upcoming closures include two locations in Mobile, and one each in Phenix City and Vestavia Hills. The Mobile area currently has six stores.

The Phenix City location is near the Columbus, Georgia market, where three other stores remain, while Vestavia Hills is part of the Birmingham area, which continues to host several other Winn-Dixie locations. Southeastern Grocers, which also owns the Harveys Supermarkets brand, previously agreed to maintain operations at 220 locations sold to Aldi until they are converted. The specific locations for these conversions have not yet been made public.

In a separate move last year, Southeastern Grocers re-acquired approximately 170 stores from Aldi, which had acquired about 400 of the company’s stores in total during 2023. Market experts suggest that Southeastern Grocers could successfully expand the Winn-Dixie brand in underserved areas throughout the Southeast. Many regions in the Gulf Coast, for example, are considered food deserts, often due to large-scale store closures and market consolidation by major players like Walmart. These underserved areas, particularly rural and suburban markets, are viewed as strong opportunities for retailers like Winn-Dixie, Aldi, and BJ’s Wholesale Club, which has recently ramped up its presence in the region. These companies are well-positioned to improve access to affordable food and bring more balanced grocery options to communities that have long lacked them.