[JustSomeGuy]

Aldi USA is run out of Batavia, IL. When WD/Harvey's reopens as an Aldi, it will shift to management and procurement handled by that location. Until then WD/Harvey banners will operate as they have been, out of the current WD HQ in Jacksonville.

When you look at the concentration of Aldi stores in the WD/Harvey's foot print this looks like more of a play to keep their fellow European Rival, Lidl, from having an opportunity at rapid expansion. The industry has seen Lidl evaluating their US strategy for the past 24 months. They have not grown like Aldi since coming to the US. It was said to be a stay or go decision. Taking WD/Harvey stores, which are all located in an area of the country where Aldi is already very developed and upgrading older locations (US entry strategy years ago was "find a grocery location that closed due to a WalMart SuperCenter opening and go in that location." Think of where old Aldi's are located.) or opening new locations with the Tan Brick store fronts in other areas in addition to these original stores. Lidl stores have small bakeries (limited baking hours), Deli sections, Much larger Dairy, Frozen and Meat sections than Aldi. If WD was still on the market 6 months ago Lidl would have bought them and been able to shut the stores for a few days, replace the WD/Harvey signs, and make very minor modifications to the interior and reopen. No remodels except for cosmetic things like removing some service cases and replacing them with shelving would have been needed in each store. Aldi did not need 400 stores in the area. Lidl did/does. Aldi says they are going to operate WD/Harvey separately. True, but not long term. When they resell the rest of the chain or sell locations separately, they get to pick the tenant. It will not be Lidl.

Keep in mind that Kroger was in Florida but is not now. They could not do the current Albertson's buy AND buy WD and get government approval (may not get Albertson's purchase approval). The Kroger/Albertson consolidation will be cleared up over the next 12 months or less one way or the other. At that time would Kroger be interested in purchasing some of the remaining locations of WD/Harvey's? They have stores in Northern Alabama, most of north and Central Georgia. No Kroger stores in southern Louisiana or southern Mississippi (where no Aldi conversions are taking place by the way) Government approval would sail through since it would increase competition in Florida. Looks like Aldi knows or at least is betting on this while keeping Lidl at bay and forcing them to build new locations or do major remodels of empty locations that were not existing grocery stores, at a much greater expense.

Add to this that Kroger is keeping Groveland FL based Ocado driven, money losing delivery service open in Tampa, Lakeland, Orlando and Jacksonville after closing their South Florida spoke locations recently. Kroger would get a base of stores outside of key markets to open almost immediately while they are building other locations exactly where they want them in growing cities. Publix did this exact same thing when entering the Atlanta Market, taking over some A&P/Big Star stores in secondary area while building from the ground up in key neighborhoods.