How ALDI’s Acquisition Of Winn-Dixie Impacts CRE

When ALDI announced it was acquiring 400 Winn-Dixie and Harveys Supermarket locations in the Southeast U.S. in mid-August, the move signaled the Batavia, Ill.-based discount retailer would not be following the crowd. Rather than closing supermarkets, as many chains have, ALDI intends to surge ahead with store openings, unveiling 120 new stores nationally to reach a total of 2,400 stores by the end of this year. In doing so, ALDI positioned itself as an increasingly formidable rival to Kroger, Publix and Walmart.

The acquisition is leading to further consolidation of the grocery retail channel. And that in turn is likely to make grocery-anchored retail centers even more appealing to purchasers who seek credit-rated tenants with comparatively low risk, says Damon M. Juha, partner and real estate practice leader with Saul Ewing in Los Angeles.