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Southeastern Grocers steps up ‘transformation’ with dissolution of Bi-Lo

Retailer to shut 57 pharmacies as assets are sold to CVS, Walgreens

Russell Redman

June 4, 2020

3 Min Read
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Southeastern Grocers said it is 'actively exploring strategic options for the remaining Bi-Lo stores, including other potential transactions.'Bi-Lo

Southeastern Grocers (SEG) said its sale of 62 stores to Food Lion and planned phaseout of the Bi-Lo supermarket banner are part of a five-year business transformation strategy since the company emerged from Chapter 11 in mid-2018.

Jacksonville, Fla.-based SEG yesterday announced that Ahold Delhaize USA’s Food Lion chain has agreed to buy 46 Bi-Lo and 16 Harveys Supermarket locations in North Carolina, South Carolina and Georgia, along with Bi-Lo’s distribution center in Mauldin, S.C.

With the deal, slated to close in the first half of next year, SEG said it’s “actively exploring strategic options for the remaining Bi-Lo stores, including other potential transactions.” After the sale, Bi-Lo will have 61 stores in Georgia and the Carolinas.

SEG also is divesting some pharmacy assets. Plans call for prescription files from 57 Bi-Lo and Harveys in-store pharmacies to be sold to CVS Health and Walgreens. Those locations include all of Bi-Lo’s 48 pharmacies and nine Harveys pharmacies in Georgia. Pharmacy patients are expected to begin transitioning their prescriptions to CVS and Walgreens within the next two weeks, according to SEG.

“The successful execution of our long-term transformation strategy may at times require difficult decisions,” SEG President and CEO Anthony Hucker said in a statement yesterday. “Today’s transactions are a critical strategic move and an important next step for our continued growth and broader evolution as a business. These actions will facilitate greater investment in our remaining footprint so we can continue to provide an exceptional shopping experience our customers can always count on.”

Related:Food Lion to buy 62 Bi-Lo, Harveys stores from Southeastern Grocers

SEG described Winn-Dixie, Harveys and Fresco y Más as its “core banners” and noted that investment in those chains already is well under way, as nearly 40% of the company’s overall store base has been remodeled in the past three years.

Winn-Dixie is set to open nine new stores in Florida this year. The new Winn-Dixies include a store in Jacksonville’s Brentwood community opened in February plus the conversion of four Lucky’s Market and four Earth Fare locations acquired in auctions during those companies’ recent bankruptcy proceedings. Those stores are due to make their debuts under the Winn-Dixie banner before the end of this year.

Meanwhile, Fresco y Más has expanded its customer base beyond the Hispanic communities it primarily serves in South and Central Florida. In December 2018, the chain opened its 26th store in Lauderhill, Fla., and the location is the banner’s first to cater to Caribbean customers, serving up more fresh food and groceries appealing to that demographic.

Related:Southeastern Grocers to open eight Winn-Dixie stores in Florida

SEG said its latest deals will “strengthen its overall performance in an increasingly competitive sector.” Deutsche Bank Securities and PJ Solomon are serving as financial advisers to SEG on the transactions, and New York-based PJ Solomon is managing the retailer’s sale process for the remaining BI-LO stores.

Currently, SEG operates 550 grocery stores under the Winn-Dixie, Bi-Lo, Harveys Supermarket and Fresco y Más banners in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina. The company emerged from Chapter 11 in May 2018 under a reorganization plan including the closure of 94 stores. In early 2019, the retailer also unveiled plans to shut another 22 stores.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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