Publix beating Wal-Mart at its own game?
Are there supermarket chains that are struggling to complete with Wal-Mart Stores, Inc. (NYSE: WMT)? Sure there are, and the case of small-town grocery retailers going up against the Bentonville behemoth is pretty well documented. But, right off the bat, let's scratch one name off that list: Publix Supermarkets.
The privately-held Publix had sales of over $21 billion in 2006 and has just opened up its 900th store. That 2006 revenue level was up 5% from the previous year, and so far, Publix does not seem (or probably feel) threatened by Wal-Mart's grocery efforts, which come in the form of Supercenters and Neighborhood Markets. Add to that tidbits like Publix having a 40% market share in Florida (its home state) and the face that it is actually taking business from Wal-Mart in its new markets of Alabama, Georgia, Tennessee and South Carolina, and it has to be asking itelf: "do you feel lucky?"
Where is Publix getting its mojo from? Customer satisfaction? Check. Publix ranks number one on the American Consumer Satisfaction Index. Publix take your groceries to the car and refuse tips -- and they also own 31% of the firm through an employee share-ownership plan. This is no Wal-Mart. Want more proof? Publix began selling organic and natural products in 1996 -- Wal-Mart began selling organic food only last year, and rumors continue that it may be retrenching into those organic plans a bit (although I've seen no proof of this yet).
Let it be said here for those who find it hard to believe: Yes, it is possible to compete against Wal-Mart ... and win.
The privately-held Publix had sales of over $21 billion in 2006 and has just opened up its 900th store. That 2006 revenue level was up 5% from the previous year, and so far, Publix does not seem (or probably feel) threatened by Wal-Mart's grocery efforts, which come in the form of Supercenters and Neighborhood Markets. Add to that tidbits like Publix having a 40% market share in Florida (its home state) and the face that it is actually taking business from Wal-Mart in its new markets of Alabama, Georgia, Tennessee and South Carolina, and it has to be asking itelf: "do you feel lucky?"
Where is Publix getting its mojo from? Customer satisfaction? Check. Publix ranks number one on the American Consumer Satisfaction Index. Publix take your groceries to the car and refuse tips -- and they also own 31% of the firm through an employee share-ownership plan. This is no Wal-Mart. Want more proof? Publix began selling organic and natural products in 1996 -- Wal-Mart began selling organic food only last year, and rumors continue that it may be retrenching into those organic plans a bit (although I've seen no proof of this yet).
Let it be said here for those who find it hard to believe: Yes, it is possible to compete against Wal-Mart ... and win.











Reader Comments (Page 1 of 5)
5-04-2007 @ 9:38PM
claricea muse said...
Is there anway I can buy stock in your company,if so how?Is there a publix in warren michigan?I dont like walmart and never shop there.It's good to here another store has beat them out.
5-05-2007 @ 9:23AM
rjames said...
I was recently introduced to Publix while visiting my daughter in Coral Springs, Florida. She calls it "her store". The associates in the store were so polite and helpful i just figured it was southern hospitality...but when the said "have a nice day" you had the feeling they meant it.
5-05-2007 @ 10:32AM
wanda webb said...
I have been a Die Hard fan for a really long time. my daughter {who is now 42 years old worked for Public while she was a senior in high school).i believe the sucess of thi store is the personal service and cleaness of the stores.All stores are well organized which makes it easy to shop.the employees all seem to be happy to be at work.
5-05-2007 @ 1:02PM
Curtis Bland said...
I quit shoping at wal-mart because thier veges are all seconds I shop at Smith s thier vegs are fresh and another thing wal-mart is only about 2 cents cheaper then other stores
5-05-2007 @ 1:46PM
fred said...
Publix has to be the best! Just recently moved from Ft Lauderdale, and the ONLY thing I miss about FLorida is Publix. Their store brands are just as good, if not better than name brands...and their deli can't be beat! I wish they'd come to Arizona, where there are no decent supermarkets!
5-05-2007 @ 2:34PM
ruth said...
Wish Publix would come to Texas, espically Bedford TX We have way too many Walmarts and their produce is always dirty and neighborhood
stores are dirty
5-05-2007 @ 3:43PM
Sandra Ann Adams said...
All you people seem brain washed to me. Publix may have good benefits and be super nice to their customers but, Publix is A full of shit company. I worked for them for four years. If you don't kiss their ass they are evil to their employees. Publix would never make it up north. They are non union and the shit they pull on people they would never get a way with up north. The give inventory bonuses every three months which was great but, if you don't work at least 1,000 hours A year they will take you bonus a way and not even warn you that your going to lose it. See what I mean about being evil to employyes. It's not that I didn't work A 1,000 hours because, I didn't want to it's because, they cut hours to save on paying out benefits. it's the only company I know that takes money a way from employees. If you don't get A certain score on your evaluation they can actually take .25 an hour a way. How that is even legal is beyond me. After four years of working for Publix's I didn't get paid for my maternity leave. The reason was because, I wasn't fulltime but, they won't hire nobody fulltime. Why once again the rather pay 10 people then pay out benefits to A fulltime employee. Think Publix is A great company to work for then you get A job with them!
5-05-2007 @ 6:31PM
gene beam said...
i live in miami and shop at the miller road publix store only because it is convient. it is a small older store that has been made even smaller because of the increased shelving and product line. it is almost impossable to navigate the isles even on a mildly crowded day becaise they are so narrow.
as far as customer service it is at best average also some employees have a very limited english vocabulary. i would like to see better improvements to this store but i doubt it.
5-05-2007 @ 6:46PM
Pam Stupar said...
I am from West Virginia where we do not have Publix.
During the last two winters we have been in Hilton Head, SC for 5 months. It's my first encounter with Publix. I absolutely love the variety of choices they offer in their aisles, their bakery & deli. The employees are the nicest and most helpful people I have ever met. I don't like Walmart either. In WV our Walmart turned into a super Walmart and I won't even go there. Be a department store or be a supermarket. Not enough of anything.
5-06-2007 @ 7:24AM
jjerry house said...
as a retired Publix pharmacist Publix I can only add accolades of praise to customer comments.
Publix has enriched my retirement immensely through both ESOP and the ability to buy stock along the way.
In fact, a recent doubling of the dividend allowed our new car purchase. In days where many retirees suffer from failing 'guaranteed' retirement plans, I made my own. So, Bravo Publix, when you win, I WIN.
5-06-2007 @ 9:04AM
Jack Pierce said...
I was mildly amused at the comments of Sandra (#8) as she complained about Publix's treatment of their employees. The whole tone of her comments and the use of the explitive adjectives makes me marvel at how she lasted four years employed by Publix. The word "a way" is apparently meant to be translated into "away". My experience with employees of Publix is that they are all very well educated and polite and sensitive people who are simply out to exist in this world at a high level of excellence. It's a tough job finding people who seek this goal for themselves. But, enough of that. My comments is that while living in Florida I drove past WalMart to shop Publix which was located three times farther away from my home. The reason was, in large measure, the differences in ATTITUDE of their staffs (as alluded to above). Publix is always a customer based business which focuses on customer statisfaction. WalMart will never reach the level of excellence enjoyed by Publix simply because they count their success in terms of profit and loss. Publix has the art of customer satisfaction down to a fine tune. Those in the orchestra wishing to make this kind of effort will be rewarded.
5-06-2007 @ 12:13PM
Larence said...
I have been an avid Walmart fan since they began. Heard read and tolerated all the Walmart bashing. I still love Walmart low prices. HOWEVER, IN LAS VEGAS there are now 20 stores, mostly Supercenters and Neighborhood Markets. LET ME TELL YOU; THEY ARE SORRY BEYOND BELIEF. ALWAYS OUT OF STOCK, EMPTY SHELVES, VERY ARROGANT EMPLOYEES, MEXICAN STOCKERS THAT DONT KNOW ENGLISH TO ASSIST YOU, DELI DOESNT KEEP SHELVES REPLENISHED. JUST TERRIBLE. VERY FRUSTRATING. THANK GOD THERE ARE OTHER CHOICES IN THE VALLEY.
5-06-2007 @ 2:43PM
Faye H Ruth said...
Having worked at Publix on Anastasia Island, St
Augustine, Fl for 6 happy years, I can truthfully
say there is no better employer. This statement comes from a retiree who needed benefits until
medicare kicked in......that is the best lure ANY
employer could offer its employees. Publix is likely the most employee-oriented company of all.
When an employee gives THEIR best, Publix rewards
that employee with good and timely raises, bonuses
every quarter tied to the success of its inventory.
What smarter way to encourage employees to be productive??? As a simple parttime cashier in my 60's, I enjoyed health benefits, retirement plan,
401(k), stock purchase plan and took it all with me
when I retired at age 67! You can't beat that with a stick NOR with a union. Unions don't make happy employees; employer/employee good relationships DO!
Most employees at my Publix were a happy crew because we were one of the busiest and most successful Publix stores in NE Florida. Customers
line up in the check-out lanes rather than shop the competition. There is SOMETHING drawing that kind of customer loyalty, and I can tell you it is just
this: QUALITY service, QUALITY food, CUSTOMER-first
mentality and a management level who sincerely believe in what they are doing. That "right thinking" filters down to the employee level who serves customers "hands on" and it also filters OUT such employees of the type, Sandra Ann Adams, named above who would rather NOT enjoy the courtesy of a store started by a true Southern gentleman many years ago, and which courtesy still endures at Publix stores today. Never never change, Publix.
I have missed Publix so badly and look forward to the day when Publix reaches the NC market.
Faye Ruth, Wilson, NC
5-06-2007 @ 3:14PM
Frank said...
YES I use to shop Wal-Mart Remember when they had banners saying "Wal-Mart buys American " now you can't find anything made in America including the cashiers. Publix thank you for fresh meats, fruits english speaking clerks,and the cleanest stores in the south.Keep up the great work and lets beat Wal-Mart out. Frank,Florida
5-06-2007 @ 4:18PM
Jacob said...
I work at publix and while some of the managers maynot be the best you cannot tell through our customer service. Our number 1 goal is to make the customer happy because you are what our company is based on. Wal mart is a large money making corp. in it to win it and not make life long commintments to there shoppers.
5-06-2007 @ 6:19PM
Sandy said...
I am a native of Florida, but have lived all over the US, and I have never found a grocery store or discount/grocery store than could compete with Publix, they are the best, I love my experience every time I shop at Publix, which is twice a week, they are friendly, economical, and their own brands are just as good or better than the leading brands, shevles are always stocked well, and they take your groceries out to your car, refuse to take
tips, and always smile, are helpful to find a product or start buying it because you asked for it, and always tell you thank you, have a nice day, and comeback soon. I find that people that are not happy working at a company, are not the kind of employee that they want representing their company, or running their company down to their customers, we are able to make dicisions for ourselves when we are treated well in a grocery store that cares about their customers, and shows it in their actions. Thanks Publix and don't change
You are doing just what we expect in other stores, but when we find your stores, we know that we will be happy shopping with you. Quality, and service is your first objective and we appreciate it.
5-06-2007 @ 6:35PM
Becky said...
I've been saying this to my friends for years. I hate Walmart because they don't care about the customer. If you have a problem you can't get a manager to see you. At Publix they smile at you and help you in any way they can. I avoid Walmart as much as humanly possible.
5-06-2007 @ 7:11PM
Joyce said...
I tried Super Walmart in Homestead, FL for a couple of years after it opened. I still shopped at Publix because I missed the Friendly, Clean and well Organized store. Yes some of the products used to be cheaper. Customer satisfaction is not on Walmart's list of priorites. There will always be those people to continue shopping at Walmart. Thank God they go there and not where I go. The isle are clogged with carts, children and neighborhood gatherings. My husband won't go .... he says it is like a family reunion in Walmart. The shoppers are just as rude as the employees. The pharamacy at Publix is another selling point. I get excellent, personal service at the Waterstone Publix. The staff in the Pharmacy is wonderful. Many "shout outs" for Publix...espcially mine in Waterston, Homestead, FL.
5-06-2007 @ 9:01PM
Jamal Cook said...
Just throwing this out there: if you have never had a Publix sub you are missing the best part of the store. The subs that the deli makes are amazing..especially if the store you shop at offers to press them with honey butter (most stores in Tampa do this, but in Gainesville the deli workers have no clue what you are talking about when you ask for such). The sushi is also very good if it is made fresh daily at the store. Only stores with a high enough customer volume offer the fresh made sushi, but if you run across it you must try it.
5-06-2007 @ 10:06PM
Jean said...
I work for Publix and we believe that customers are # one. We will always have customer satifaction,thats what make us different than Wal-mart. We are #1.