BI-LO/Winn Dixie Merger Would Create 690 Location, $10B Supermarket Chain

Although the proposed merger BI-LO/Winn Dixie has hit a snag from a group of Winn Dixie stockholders, it still has a good chance of creating a grocery retailer ranking just outside of the top 10 in the US. The group of disgruntled Winn-Dixie shareholders has filed a class action lawsuit against the grocer and of members of the board of directors potentially blocking the proposed sale, which is expected to close by March 31^st.

While the merger would create a $10 billion retailer with 690 supermarkets across the eastern US, none of the locations overlap in any markets. Below is a look at the top three markets for each company, according to Chain Store Guide’s 2011 market share figures. Initial reports are that BI-LO will operate Winn-Dixie as a separate subsidiary and will not convert any of its stores the BI-LO banner. However, purchasing and logistic efficiencies should be realized, as well as the possibility of private label products appearing on one another’s shelves.

Look for the 2012 Grocery IndustryMarket Share report featuring updated grocery sales per market, sales figures, market demographics, and more later on this spring.

Winn Dixie:

BI-LO:

Source: Chain Store Guide’s 2011 Grocery Industry Market Share Report