Southeastern Grocers to divest pharmacy assets to CVS, Walgreens

Southeastern Grocers (SEG) confirmed Wednesday that it plans to sell its Winn-Dixie and Harveys Supermarket pharmacy businesses to CVS Health and Walgreens.

Plans call for the Winn-Dixie and Harveys' prescription files to be transferred to the two drug chains by the end of 2023, according to Meredith Hurley, senior director of communications and community at Jacksonville, Florida-based SEG. Financial terms weren’t disclosed.

News of the Rx asset sale came less than a week after SEG announced the divestiture of its retail operations, including about 400 Winn-Dixie and Harveys supermarkets in five states (75% in Florida), to discount grocer Aldi U.S. and 28 Fresco y Más supermarkets (and four pharmacies) in Florida to an independent investor group. Batavia, Illinois-based Aldi doesn’t offer pharmacies in its stores, which operate under a limited-assortment format.

“Prior to the closing of the proposed merger agreements recently announced, Southeastern Grocers has entered into agreements to transfer prescription files to certain CVS pharmacies and Walgreens. These agreements will help ensure that our pharmacy customers continue to have access to pharmacy services without interruption,” Hurley told Winsight Grocery Business in an email on Wednesday.

Related:Aldi to acquire Southeastern Grocers’ Winn-Dixie, Harveys supermarkets

“While we do not have a definitive date at this time, we can assure you that nothing changes today. We remain committed to protecting the health and wellness of our customers and communities until the transactions are finalized, and our pharmacy customers will be provided sufficient advance notice prior to the transfer,” she added. “We are working closely with CVS Pharmacy and Walgreens to ensure that our customers’ prescriptions are handled carefully and confidentially and that there won’t be any delay in service.”

News of SEG’s pharmacy asset sale emerged earlier this week in published reports, which said the retailer’s pharmacists were informed of the move in an internal memo.

Both CVS and Walgreens said they will offer positions to SEG pharmacy staff at locations being closed.

“CVS Pharmacy has entered into an agreement to acquire the prescription files from select pharmacy locations of Southeastern Grocers,” CVS Pharmacy spokesperson Amy Thibault said in an email on Wednesday. “We’re working to ensure that the transition will be seamless for patients and access to pharmacy care is not interrupted. Upon the expected completion of the transactions later this year, the acquired prescription records will be transferred to nearby CVS Pharmacy locations.”

Related:Does Aldi-Southeastern Grocers deal augur more supermarket consolidation?

Walgreens reported that it has agreed to acquire customer prescription files from Winn-Dixie and Harveys pharmacies in five states. "Customers do not need to take any action, as their pharmacy files will automatically transfer to Walgreens. They will receive notification in the mail along with details about their prescriptions," Walgreens spokesman Fraser Engerman said in an email on Wednesday. "Walgreens has a long history of serving communities throughout the U.S. and looks forward to providing Winn-Dixie and Harveys’ customers with greater access to a wide range of trusted pharmacy and health care services."

Currently, Southeastern Grocers operates about 420 supermarkets, many with in-store pharmacies, under the Winn-Dixie, Harveys and Fresco y Más banners in Florida, Alabama, Louisiana, Georgia and Mississippi.