ALDI to acquire Winn-Dixie

[veteran+]

Perhaps in some small areas Albertsons did WD in but there were not enough Albertsons in Florida proper to do anything significantly to WD.

[wnetmacman]

In Florida, Albertsons probably was a significant problem for Winn Dixie... since Albertsons kept developing stores there through the 90's and into the 00's. I wonder if the exit of Albertsons from FL is what enabled Winn Dixie to keep scraping along as long as it has? Jacksonville, coincidentally the Winn Dixie HQ, was an early exit by Albertsons; and it seems like Winn Dixie spent more money there after that exit of Albertsons.

It seems like Kroger kicked them out of competition pretty early on where the two competed.

Albertsons was never big enough in Florida to put a dent in WD. Remember that Albertsons doesn't go to the smaller towns; WD did and did pretty well until Publix ran them over.

Plus, they gave up Florida first. There's something to be said for that.

[jipper]

Albertsons was never big enough in Florida to put a dent in WD. Remember that Albertsons doesn't go to the smaller towns; WD did and did pretty well until Publix ran them over.

Plus, they gave up Florida first. There's something to be said for that.

Agree 100%. Winn Dixie did themselves in.

I have lived in the same Florida town for about 40 years. When I moved here, Winn Dixie was the only game in town - one had to travel about 10 miles to get to a Publix, so they had a captive audience. W/D had two stores in town; a 1968 grocery store style and a 1978 mansard style store. The 1968 store stank of mold and to say that the freshness of items there was suspect is an understatement. Both stores were pretty busy. Then Publix came to town and the shopping landscape was transformed.

Both of the W/D stores were replaced by W/D Marketplace stores. There was a rumor that Winn Dixie held the lease on the mansard roofed unit. It sat empty and boarded up for 10 years. As it was at the entrance to town, people were not impressed. The new market on my end of town was a huge store, but the prices were very high and the staff that I dealt with went out of their way to be unaccommodating and rude. Only went there once.

That store was replaced in 2003 with a site in my neighborhood. Again, pretty busy as there was no Publix in the area - until a few years later. Pretty plain store, but the staff was super friendly and the store reasonably clean. That store was closed last month. There is a banner still hanging on the front of the store saying "Store closing soon"; three weeks after closing with no poster sending people to the other store in town, which is somehow chaotic in its layout and not very clean. That other store has not been updated in may years it would appear.

Bottom line is Winn Dixie set very low standards for an extended period and took their customers for granted. They, like Sears, A&P and numerous other companies just did not seem to care; becoming places to avoid rather than a shopping destination. The recent improvements are positive, but it is probably too little too late to save the banner in the long run. Their prices were high (and still are, in many cases) and the quality of service was low. They have changed their attitudes about employee behavior and customer service but once a reputation is earned it is hard to shed it.

[veteran+]

Albertsons was never big enough in Florida to put a dent in WD. Remember that Albertsons doesn't go to the smaller towns; WD did and did pretty well until Publix ran them over.

Plus, they gave up Florida first. There's something to be said for that.

Agree 100%. Winn Dixie did themselves in.

I have lived in the same Florida town for about 40 years. When I moved here, Winn Dixie was the only game in town - one had to travel about 10 miles to get to a Publix, so they had a captive audience. W/D had two stores in town; a 1968 grocery store style and a 1978 mansard style store. The 1968 store stank of mold and to say that the freshness of items there was suspect is an understatement. Both stores were pretty busy. Then Publix came to town and the shopping landscape was transformed.

Both of the W/D stores were replaced by W/D Marketplace stores. There was a rumor that Winn Dixie held the lease on the mansard roofed unit. It sat empty and boarded up for 10 years. As it was at the entrance to town, people were not impressed. The new market on my end of town was a huge store, but the prices were very high and the staff that I dealt with went out of their way to be unaccommodating and rude. Only went there once.

That store was replaced in 2003 with a site in my neighborhood. Again, pretty busy as there was no Publix in the area - until a few years later. Pretty plain store, but the staff was super friendly and the store reasonably clean. That store was closed last month. There is a banner still hanging on the front of the store saying "Store closing soon"; three weeks after closing with no poster sending people to the other store in town, which is somehow chaotic in its layout and not very clean. That other store has not been updated in may years it would appear.

Bottom line is Winn Dixie set very low standards for an extended period and took their customers for granted. They, like Sears, A&P and numerous other companies just did not seem to care; becoming places to avoid rather than a shopping destination. The recent improvements are positive, but it is probably too little too late to save the banner in the long run. Their prices were high (and still are, in many cases) and the quality of service was low. They have changed their attitudes about employee behavior and customer service but once a reputation is earned it is hard to shed it.

And remember they had another great opportunity when Pantry Pride imploded with Ron Perelman at the helm (corporate raider).

[cjd]

At this point after various efforts of modernization I think the present WD operation is better than it was 15-20 years ago... Those efforts are why they are even still open at all.

I think WD is much better than they were 20 years ago. The stores are cleaner and more modern, probably because of the remodels and the dumping of some of the old and run down stores.

Are they as fancy or modem as Publix stores? No. But I’ve been to multiple WD stores in my area and haven’t had any issues lately.

The cashiers have been friendly, there haven’t been long wait times and they stores are clean and well stocked, though some are a bit worn.

I will say I feel like Publix has lost some of its edge the last couple of years. It just isn’t what it used to be. Oh the stores are magnificent! But I just can’t see what’s so special about it anymore otherwise. The deli and bakery are gray, I’ll give them that. They have the best fried chicken and subs for sure.

Years ago I never liked shopping at any Winn Dixie, the stores felt old and just a bit creepy, I don’t know what it was. I rarely was in an area with a Marketplace but those were alright. I’m talking the old 70s and 80s era ones, and this was in the late 90s.

But I don’t get that vibe at all anymore.

The pricing can be high, but if you shop the sales they can be as competitive as Publix.

I don’t really see what’s wrong with them. But that’s the stores in my area. I’ve had bad experiences with Publix, too.

I don’t want to see anymore of them convert to Aldi stores. They still serve a purpose. I’d like to see them put more into some of the locations, but otherwise I think they’re doing ok.

[wnetmacman]

I think WD is much better than they were 20 years ago. The stores are cleaner and more modern, probably because of the remodels and the dumping of some of the old and run down stores.

Are they as fancy or modem as Publix stores? No. But I’ve been to multiple WD stores in my area and haven’t had any issues lately.

The cashiers have been friendly, there haven’t been long wait times and they stores are clean and well stocked, though some are a bit worn.

I will say I feel like Publix has lost some of its edge the last couple of years. It just isn’t what it used to be. Oh the stores are magnificent! But I just can’t see what’s so special about it anymore otherwise. The deli and bakery are gray, I’ll give them that. They have the best fried chicken and subs for sure.

Years ago I never liked shopping at any Winn Dixie, the stores felt old and just a bit creepy, I don’t know what it was. I rarely was in an area with a Marketplace but those were alright. I’m talking the old 70s and 80s era ones, and this was in the late 90s.

But I don’t get that vibe at all anymore.

The pricing can be high, but if you shop the sales they can be as competitive as Publix.

I don’t really see what’s wrong with them. But that’s the stores in my area. I’ve had bad experiences with Publix, too.

I don’t want to see anymore of them convert to Aldi stores. They still serve a purpose. I’d like to see them put more into some of the locations, but otherwise I think they’re doing ok.

They may be better - but they are exponentially smaller. 20 years ago was prior to the first bankruptcy and just after they shut down Texas - which was a big hit they could not afford.

I too would be friendly if I knew at any moment that the suits could come in and shut me down - and the replacement only employs 10 folks! It's now a competition for my job.

Publix doesn't need to get any different in Florida - they have conquered that market and then some. The Deli and Bakery are far superior to what is found outside their operating territory, even as close as 50 miles - Rouses operates in South Alabama, and Publix in Pensacola - even with Rouses' decent peripherals, they do not have a fully consistent offering like the subs and chicken that Publix does.

I last entered a WD store 2 years ago, near New Orleans. While the decor was updated, it still felt creepy, old and outdated. Maybe they tried a little harder in Florida than in Louisiana, where they once covered the whole state, they now essentially have New Orleans.

The conversion to Aldi is not if, but when. It's coming to your local store. Aldi, as we've discussed here in great length, is NOT a full service supermarket. Far from it. It serves a purpose, but not the same one.

[storewanderer]

At this point after various efforts of modernization I think the present WD operation is better than it was 15-20 years ago... Those efforts are why they are even still open at all.

I think WD is much better than they were 20 years ago. The stores are cleaner and more modern, probably because of the remodels and the dumping of some of the old and run down stores.

Are they as fancy or modem as Publix stores? No. But I’ve been to multiple WD stores in my area and haven’t had any issues lately.

The cashiers have been friendly, there haven’t been long wait times and they stores are clean and well stocked, though some are a bit worn.

I will say I feel like Publix has lost some of its edge the last couple of years. It just isn’t what it used to be. Oh the stores are magnificent! But I just can’t see what’s so special about it anymore otherwise. The deli and bakery are gray, I’ll give them that. They have the best fried chicken and subs for sure.

Years ago I never liked shopping at any Winn Dixie, the stores felt old and just a bit creepy, I don’t know what it was. I rarely was in an area with a Marketplace but those were alright. I’m talking the old 70s and 80s era ones, and this was in the late 90s.

But I don’t get that vibe at all anymore.

The pricing can be high, but if you shop the sales they can be as competitive as Publix.

I don’t really see what’s wrong with them. But that’s the stores in my area. I’ve had bad experiences with Publix, too.

I don’t want to see anymore of them convert to Aldi stores. They still serve a purpose. I’d like to see them put more into some of the locations, but otherwise I think they’re doing ok.

I am afraid more and more will convert to Aldi unless the conversions botch and Aldi decides not to proceed and divests the stores to someone else. But I am not sure that will happen.

The chain has improved in my view; many of the worst stores have closed and what is left is generally better stores. But it is too little too late when the buyer is Aldi who is going to convert to its own format and maybe keep the attached liquor store how it is as Winn Dixie.

At this point I don't think it matters how good or bad Winn Dixie does. It is simply a matter of the Aldi timeline at this point what is going to happen.

Maybe in the end when Aldi realizes there are 200 stores that aren't good conversion candidates, they can sell those and the bones of the chain's infrastructure off to some group will keep them going as Winn Dixie. But at that point is it enough stores to even be relevant? I suspect the stores that aren't good conversion candidates will be spread thin throughout the geography from LA all the way to FL so it would be very challenging to run so few stores so far apart.

[Romr123]

I am afraid more and more will convert to Aldi unless the conversions botch and Aldi decides not to proceed and divests the stores to someone else. But I am not sure that will happen.

The chain has improved in my view; many of the worst stores have closed and what is left is generally better stores. But it is too little too late when the buyer is Aldi who is going to convert to its own format and maybe keep the attached liquor store how it is as Winn Dixie.

At this point I don't think it matters how good or bad Winn Dixie does. It is simply a matter of the Aldi timeline at this point what is going to happen.

Maybe in the end when Aldi realizes there are 200 stores that aren't good conversion candidates, they can sell those and the bones of the chain's infrastructure off to some group will keep them going as Winn Dixie. But at that point is it enough stores to even be relevant? I suspect the stores that aren't good conversion candidates will be spread thin throughout the geography from LA all the way to FL so it would be very challenging to run so few stores so far apart.
[/quote]

I think you said a lot here. There is a thin layer of "non-compatible" stores throughout the footprint (locationally, income-ly, ethnically (believe there are several W-D that are in heavily Jewish areas with more extensive Kosher sections than Aldi can support), selectionally (exceptionally busy deli/bakery/floral/integrated liquor) that would not be beneficial as Aldi, but as said, they're very thinly spread over the footprint (seriously--make a chain out of say 150 stores; heavily ethnic or Jewish in SE/SW Florida plus an odd store here and there in Columbus, GA, Montgomery, AL, Gulfport MS and New Orleans and then the single-store markets already with an Aldi and WM Supercenter where WD is the 3rd store......tough to make a go of this.

[pseudo3d]

Unless Aldi decides to try to at least experiment with one Winn-Dixie using Aldi's decor and products but with a full bakery and deli, the Winn-Dixie chain is dead and the remaining stores are bound for C&S within a few years, where they will meet their fate.

I hope I'm wrong about the fate of Winn-Dixie, but maybe things will work out...