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.
Last updated: May 22, 2012: 03:07 AM
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Reader Comments (Page 5 of 5)
5-10-2007 @ 11:20PM
PAMELA said...
CELIA #72.
IT AMAZES ME THAT MOST LATIN AMERICANS SEEM TO THINK THAT THE AMERICANS ARE LAZY AND IF IT WERE NOT FOR HISPANICS AND THEIR CHEAP LABOR THERE WOULD BE NO U.S. IF YOU PEOPLE ARE SO GREAT WHY ARE THE LATIN AMERICAN COUNTRIES NI THE TOILET? AND ALL OF YOU ARE JUST DYING TO GET IN HERE? I THINK YOU ARE THE RACIST, CELIA!
5-11-2007 @ 12:13AM
Jane Bennett said...
Shopped Publix many years. However they are way too expensive. Comparison shopped with Walmart for same items and Publix was 25% higher in prices overall. Showed both register tapes to the manager and all he could say was, yes I know we are more expensive but there is nothing we can do about it. In today's rising costs of taxes, insurance, gas, food shopping is getting almost scary now especially for those on fixed incomes! We almost have to go elsewhere now. When a box of cookies is $4 and same for box of regular cereal....need I say more?? It is sad!
5-11-2007 @ 1:46AM
Bev said...
Lived in Tampa, FL for 2 years and really enjoyed shopping at Publix. Great produce, deli, meat market, bakery, customer service, etc., but they were much more expensive for basic products. So I bought the basics at Walmart Super Centers or local groceries, but got the extras and better quality products at Publix.
Hate to say it, but the Walmarts in Tampa were a bit scary and inconvenient, especially in some of the poorer or more crime-ridden areas. Terrible customer service, non-working carts, bad produce, etc. So I had to go to more expensive areas to find the better Walmarts.
Many times in FL it was hard to find an English-speaking Walmart employee, something I never experienced at Publix. This is not a prejudiced comment... just the facts. I believe everyone living in America should learn and speak English, the native language, especially in the business world such as in stores dealing with customers. Have lived overseas and traveled extensively, so I'm not an uneducated or unsophisticaed redneck... just a nice American.
Now that I'm in Little Rock, AR, most of the Walmart Super Centers and other local groceries are pretty clean and have good customer service compared to Tampa, but can't find the products Publix carried. Shop other grocery and specialty shops for specialty items.
Publix would go over very well in this area, especially if they could manage to keep their prices lower than in the FL stores.
5-11-2007 @ 2:27AM
Kimberly said...
Bravo Publix! As a resident of Upstate New York, I shop at Publix only one month out of the year in the Pompano Beach store. It amazes me, as a vacationer, that I see the same employees year after year at Publix and these kind and courteous employees remember my family and me year after year! That speaks volumes, as apparently these employees are happy to be long-term employees of Publix and that these employees take great strides to interact positively with their customers. We have great grocery chains in NY but our Walmart Superstore is not one of them. The produce and meat is second class and the mix match isles seem more like an outlet store. There is just no cutting corners when it comes to quality product and quality personnel, and Publix is well aware of this! It is very refreshing to hear from Publix employees and their satisfaction with their employer and their benefits. I have been in our Walmart later at night and it is like the employees are a bunch of school kids whose teacher never showed up for class!! There is yelling amongst them, loud profanity is out of control, they are too busy socializing amoungst themselves as a customers wait for assistance, the parking lots are filled with empty carts and the shopping isles are cluttered with products that have fallen from the shelves. Make sure that you check your receipt when shopping at Walmart, our store is FAMOUS for overcharging or leaving some of your bags on the carousel after checking out. There are a few good eggs at Walmart, but the overall experience of shopping there can't come close to that of Publix. Just a quick FYI-10% of ALL of China's exporting goes to Walmart ALONE! Made in the USA, not at Walmart, it's all about the almighty buck!! Pleased with Publix, Kimberly
5-13-2007 @ 1:59PM
Jessica said...
No offense but some of this I find completely hilarious. I live right next door to Bentonville. So I'll never in my life work for Walmart though I do have many friends that have worked for them or do currently work for them. Some of them liked it, some not so much just like any job. So Walmart's only problem is that it's gone way too corporate. When it first started everyone praised Sam Walton. When the first supercenter was opened no one really complained. And anyways when haven't we gone to Walmart in the middle of the night because it is the only place open, or go there because it's the nearest shopping destination. So on occassion around here a Walmart is dirty. But what about half the customers that go in and tear the place up, we know they do, I have even seen it. Oh, but I forget some people don't know how to use their mouth and fix some of the problems at the source.
5-11-2007 @ 4:55AM
txrose42 said...
Wal-mart is a store who is stuck on there self and they use there sells to put other stores out .... and i think that is sorry in them ...they will hire u and if u get sick are down they want work with you r help you they will fire you ...And all they do in meetings is tell u how to kiss ass on shoppers so they will come back so they can make money no money no bonus....THEY R FOR THERE ON GOODS
5-11-2007 @ 6:20AM
Brian Hutsler said...
I cannot get back to Florida fast enough.I am in Denver where I was born and raised. There is not a store here that can compete with Publix.Well organized,best deli anywhere,clean and great value.I just don't see the high prices other posters are talking about.Pick up the store brands, they are better than name brands in most cases.See you soon Publix!Brian Hutsler Madiera Beach Florida
5-11-2007 @ 5:47AM
Jeff L said...
Just Visited Publix in Greenville S.C. and I must say it is was a great evperience, the customer service all the way to the deli clerks was wonderful. Wife and I did mention how everyone was cheerful and willing to help. Maybe we just caught them all on a good day.. we will shop Publix again.
5-29-2007 @ 9:23AM
gladtoworkforpublix said...
#44, you just made my day....As a department manager in the Montgomery area, it tickles me but also saddens me that you feel the way you do.
First let's get one thing straight. When it comes to price NO ONE CAN COMPETE WITH WAL-MART. However, we can and do compete with other grocery stores. In the Montgomery area our prices are actually cheaper than WD and Bruno's. Contrary to your belief, Customers DO EXPECT AND WANT premier customer service. If you want no frills, impersonal customer service, then you are probably shopping where you need to be. In the almost 2 years we have been in Montgomery, our market share steadily increases(just like it does in Nashville TN, the state ofSouth Carolina and the rest of Alabama where publix is expanding). You need to give the wonderful citizens of Montgomery more credit than your feeble expectations...........In response to # 58...We will be in Chattanooga by late summer/Early fall...
To the earlier post about cashing in my retirement and investing in high yield mutual funds....
MY RETIREMENT INCREASED AT 28% RATE LAST YEAR........WHAT MUTUAL FUND WOULD YOU RECOMMEND THAT CAN CONSISTANTLY GIVE ME A 20% YIELD YEAR IN & YEAR OUT.......