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JACKSONVILLE, Fla. — CVS Pharmacy and Walgreens will acquire the prescription files of Winn-Dixie and Harveys supermarkets in conjunction with the sale of the stores to Aldi.
Aldi is buying 400 outlets across Alabama, Florida, Georgia, Louisiana and Mississippi from the two chains’ parent company, Southeastern Grocers (SEG).
CVS is “working to ensure that the transition will be seamless for patients and access to pharmacy care is not interrupted,” a spokesman said.
Upon the expected completion of the Aldi deal by year end, the acquired script files will be transferred to nearby CVS stores. Employees of the closing pharmacies who are interested in joining CVS will be interviewed for positions.
Walgreens will pick up files and related pharmacy inventory from Winn-Dixie and Harveys pharmacies in all five states. It also will be providing employment opportunities for pharmacy staffers.
The Aldi acquisition provides the Germany-based company a chance to accelerate its fast growth in the U.S. For SEG it means more store divestitures.
“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” said Aldi chief executive officer Jason Hart. “The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach a total of more than 2,400 stores by year-end.”
Aldi said it is “doubling down” on its expansion plans at a time when many retailers shuttering stores due to economic concerns. The bullishness underscores Aldi’s position as one of the fastest-growing grocers in the country, the company said.
For SEG, the merger agreement represents a milestone in its transformational journey, said Anthony Hucker, the company’s president and CEO. “Aldi shares our vision to provide exceptional quality, service and value — and this unique opportunity will evolve our business to benefit our customers, associates and neighbors throughout the Southeast.”
Aldi has been expanding its footprint in the Southeast, including the recent opening of its 26th regional headquarters and distribution center, in Loxley, Ala. The retailer said it has plans to open 20 new locations in the region by year’s end.
Added Hart, “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 serve. For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores.”
SEG is the parent company and home of Fresco y Más, Harveys and Winn-Dixie grocery stores, liquor stores and in-store pharmacies serving consumers and communities in five Southeastern states.
The company has sold off a number of stores in recent years to improve its balance sheet. The company phased out its Bi-Lo banner as part of a five-year transformation plan initiated as the company emerged from Chapter 11 bankruptcy in 2018. Hucker, a former Schnuck Markets and Giant Food executive, had been brought on board the previous summer to lead the turnaround. SEG subsequently sold off some of its Harveys locations and a distribution center to Ahold Delhaize USA’s Food Lion chain.
SEG has agreed to divest its Fresco y Más operations, via a sale of the banner that the company expects to close in the first quarter of 2024. The Fresco y Más banner, including all 28 stores and four pharmacies, will be sold to Fresco Retail Group LLC, an investment group focused on food and grocery. Fresco Retail plans for all stores and pharmacies in the Fresco y Más banner to continue operating as they are presently.
