Nov 22, 2022 - Economy & Business

More grocery consolidation as Winn-Dixie explores a sale

Illustration of a bag of groceries surrounded by shapes and zoomed in sections of a dollar bill.

Illustration: Gabriella Turrisi/Axios

Southeastern Grocers, parent company of the Winn-Dixie and Harvey supermarket chains, is exploring a sale, according to The Wall Street Journal.

Why it matters: This comes shortly after Kroger agreed to buy Albertsons for $24.6 billion, putting pressure on others in the industry to consolidate.

Background: The Jacksonville, Fla.-based retailer canceled IPO plans last year. In early 2018, when owned by Lone Star Funds, it filed for Chapter 11 bankruptcy protection.

The bottom line: Southeastern Grocers could become a consolation prize for either Kroger or Albertsons, were their merger to be blocked by antitrust regulators. But, as Axios Pro's Richard Collings notes, it also may be removing itself as a bidder for the hundreds of stores that Kroger would need to divest were its Albertsons deal to go through.

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