Southeastern Grocers Pharmacies Keep Part of Transformation Strategy

Southeastern Grocers, Inc. (SEG), operates 550 grocery stores, liquor stores and in-store pharmacies under the Winn-Dixie, Bi-Lo, Harveys Supermarket and Fresco y Más banners in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina.

SEG 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.

The Food Lion brand of Ahold Delhaize recently agreed to acquire 62 sites from SEG. A total of 46 Bi-Lo and 16 Harveys Supermarkets stores are being acquired. These stores are located in Georgia, North Carolina, and South Carolina. As part of the agreement, Food Lion will gain a distribution center in Mauldin, SC.

SEG announced separately that it will exit the Bi-Lo grocery brand and is examining other strategic options, including potential sales, for the Bi-Lo stores not associated with the Food Lion deal.

SEG also said it will transfer pharmacy operations at 57 Bi-Lo and Harveys stores to CVS and Walgreens within the next 2 weeks. Those locations include all of Bi-Lo’s 48 pharmacies and nine Harveys pharmacies in Georgia. SEG said it will use the proceeds from asset sales to strengthen its Winn-Dixie, Fresco Y Mas, and Harveys locations.

While actively reducing its pharmacy assets, SEG plans to enhance the experience for its pharmacy customers during these difficult times. SEG now offers contactless prescription delivery from its Fresco y Más, Harveys Supermarket and Winn-Dixie banners. This new service is in partnership with ScriptDrop and includes free curbside pickup, two-day shipping for $4.99 or same-day delivery, if within five miles from their store, for $7.99. 

SEG has also partnered with Omnicell Population Health Solutions on a new software solution that allows its pharmacists to identify patients who may be at risk for an accidental opioid overdose. It creates tasks for pharmacists to proactively reach out to patients. Omnicell PHS’s Opioid Mitigation Solution assesses if the patient is actively taking their medications and determines if they are aware of the potential harmful side effects associated with opioid abuse.

SEG, in 2018, introduced specialty pharmacy Pathstone Health Services at all of the company’s stores. Pathstone provides customers with customized, convenient care for complicated, often chronic medical conditions, among them cancer, hepatitis, multiple sclerosis and Crohn’s disease.


Takeaway: SEG said its recent divestitures are part of a five-year business transformation strategy since the company emerged from Chapter 11 in mid-2018