Dive Brief:
- Delhaize, the Dutch supermarket conglomerate, has completed its sale of three U.S. supermarket chains -- Sweetbay, Harveys, and Reid’s-- to Bi-Lo Holdings for $246 million in cash.
- In a separate transaction, Delhaize sold its distribution center in Florida to C&S Wholesale Grocers for $28 million.
- Bi-Lo has said it plans to turn the Sweetbay stores into Winn-Dixie locations and convert the Reid's stores to Bi-Lo stores. The Harveys brand will be retained.
Dive Insight:
The deal, first announced late last year and then tweaked to meet regulatory approval, will substantially alter the retail scene, particularly in the Southeast. Sweetbay, for example, was a Florida institution.
But now that the deal has reached completion, it's a little easier to see Delhaize's reasoning. The company is changing its strategy and revamping every one of its 1,100 stores. That $246 million will help defray some of that cost, and it lets Delhaize exit those locations where the new, slightly more upscale approach, would have faced difficulties.