In 2017, 21 companies filed for bankruptcy, a new high, noted Andrew Appel, president and CEO of IRI, at the Chicago-based analytics company’s recent annual summit in Las Vegas. Joining the list in 2018 were two regional grocery retailers, upstate New York’s Tops Marketsand Southeastern Grocers (SEG), based in Jacksonville, Fla.
And while the wedding of Amazon and Whole Foods certainly “set off a bomb in our industry,” as Appel remarked, it wasn’t the sole or even the leading cause of these grocers’ financial challenges: Tops faced a burdensome debt structure, and SEG was continuing to reinvent itself after filing twice previously for bankruptcy since 2005 as it has struggled in a highly competitive and overstored Southeast.
For its part, SEG has been quite busy during its latest reorganization, thinning its store count with sell-offs to other regional players while remodeling many locations and investing in the expansion of its Hispanic banner Fresco y Más in central Florida, plus rolling out a new loyalty program. SEG’s reorganization plan reduced the grocer’s debt by more than $500 million, and after closing 94 stores, the company will continue to operate 580 stores under the Winn-Dixie, Bi-Lo, Harveys and Fresco y Más banners in seven southern states.
Merger and acquisition activity is expected to continue as companies pursue partners that can not only help them more efficiently serve consumers, but also possess competencies in areas that they seek to enhance to be more competitive (like Kroger did in acquiring Harris Teeter, for its click-and-collect prowess, and Roundy’s, to get fresh-savant Mariano’s).
One change to next year’s ranking we already know: Houston-based Fiesta Mart (44th) was acquired earlier this year by Bodega Latina Corp. (48th), the California-based subsidiary of Mexican company Grupo Comercial Chedraui S.A.B. DE C.V. As PG reported in March, the deal will create one of the largest Hispanic-focused supermarket companies in the United States, with 122 stores in California, Arizona, Nevada, New Mexico and Texas, a region where more than half of the fast-growing U.S. Hispanic population lives.
Our drill-down into the Super 50 continues will continue throughout the week. Check back daily for the latest update.
| 2018 Rank | 2017 Rank | Company | Fiscal Year-End Sales (000) |
| 1 | 1 | Walmart Inc. | $159,809,000 |
| 2 | 2 | The Kroger Co. | $79,240,200 |
| 3 | 3 | Albertsons Cos. Inc. | $61,261,200 |
| 4 | 4 | Ahold Delhaize USA | $46,119,320 |
| 5 | 5 | Publix Super Markets Inc. | $28,535,000 |
| 6 | 6 | H.E. Butt Grocery Co. | $16,451,500 |
| 7 | 8 | Wakefern Food Corp. (*Aggregate of ShopRite, Price Rite and The Fresh Grocer banners) | $16,300,000 |
| 8 | 9 | Amazon (as Whole Foods Market) | $15,655,900 |
| 9 | 10 | Aldi Inc. | $14,664,780 |
| 10 | 12 | Trader Joe’s Co. | $13,000,000 |
