Delhaize bails on Bottom Dollar

ALDI is accelerating its growth and dramatically increasing its presence in the Northeast with the acquisition of 66 Bottom Dollar Food stores from Delhaize Group.



Delhaize said it reached an agreement to sell its 66 Bottom Dollar stores in the greater Philadelphia and Pittsburgh markets for $15 million and associated lease liabilities. Delhaize said it would take an asset impairment charge of $180 million in conjunction with the sale.



The stores will remain open as Bottom Dollar Food stores until year-end, at which time they will close and the Bottom Dollar banner will be retired, according to Delhaize.



"The divestiture of Bottom Dollar Food further simplifies our business, increases debt capacity and creates shareholder value. Today's announcement is consistent with our strategy, announced in March, of investing in and focusing on our core markets,” said Delhaize president and CEO Frans Muller.



Delhaize currently operates 3,386 stores and last year generated revenue of roughly $27.8 billion.

The acquisition by ALDI is part of an accelerating growth strategy for the discount grocer. The company, which currently operates 1,300 stores, plans to open 650 new stores across the country, including expanding to Southern California, bringing its total number of US stores to nearly 2,000 by the end of 2018.