Publix

Publix Super Markets, Inc.
Private/Employee Owned
Industry Retail
Founded Winter Haven, Florida (September 6, 1930 (1930-09-06))
Founder George W. Jenkins Jr.
Headquarters Lakeland, Florida
Number of locations
1,112[1]
Area served
Florida, Georgia, North Carolina, South Carolina, Tennessee, Alabama
Key people
Products Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor, lottery tickets, sushi, GreenWise, Western Union, money orders, dry ice, prepared foods
Services Supermarket, event planning, money services
Revenue
  • Increase $32.36 billion (2015)[3]
  • Increase $30.56 billion (2014)[3]
  • Increase $2.869 billion (2015)[3]
  • Increase $2.570 billion (2014)[3]
  • Increase $1.965 billion (2015)[3]
  • Increase $1.735 billion (2014)[3]
Total assets
  • Increase $16.36 billion (2015)[3]
  • Increase $15.08 billion (2014)[3]
Total equity
  • Increase $12.43 billion (2015)[3]
  • Increase $11.35 billion (2014)[3]
Number of employees
179,000 (2016)[1]
Slogan Where shopping is a pleasure.
Website publix.com
Main entrance to the corporate headquarters

Publix Super Markets, Inc., commonly known as Publix, is an employee-owned, American supermarket chain based in Lakeland, Florida.[1] Publix operates throughout the Southeast, with locations in Florida, Georgia, Alabama, South Carolina, Tennessee, and North Carolina.[1]

Founded in 1930 by George W. Jenkins, Publix is a private corporation that is wholly owned by present and past employees. It is currently ranked No. 81 on Fortune magazine's list of 100 Best Companies to Work For 2015[4] and was ranked No. 8 on Forbes' 2015 list of America's Largest Private Companies and is the largest in Florida.[5] The company's 2015 sales totaled US$32.4 billion, with profits of $1.97 billion, ranking #104 on Fortune magazine's Fortune 500 list of U.S. companies for 2015.[6] Supermarket News ranked Publix No. 5 in the 2014 "Top 75 North American Food Retailers" based on fiscal year sales.[7] Based on 2014 revenue, Publix is the thirteenth-largest U.S. retailer and thirty-fifth in the world.[8] Publix's current stock price is $43.95 per share,[9] though stock in the company is only available for purchase by eligible active employees and non-employee members of its Board of Directors.[9]

In 2011, Publix announced they would be moving into the North Carolina market, first opening stores in the Charlotte metropolitan area,[10] and later announced construction of a new store in Asheville.[11] The first Charlotte-area stores, located on the South Carolina side of the metropolitan area, opened in 2012; the first North Carolina store opened in Ballantyne on February 26, 2014.[12] Concurrently, Publix purchased seven Charlotte-area locations from competitor BI-LO stores.[13] Publix completed the purchase of property in Boone, NC on November 20, 2015 with plans to open in 2017.[14]

In February 2016, Publix announced their entry into the Virginia market, with the signing of two store leases, the first in Bristol scheduled to open in late 2016, and the second in metropolitan Richmond scheduled for 2018.[15]

Publix employs almost 180,000 people at its 1,114 (as of 2015 year-end[16]) retail locations, cooking schools, corporate offices, eight grocery distribution centers, and ten manufacturing facilities. The manufacturing facilities produce its dairy, deli, bakery, and other food products.[1]

Publix stands as one of the largest U.S. regional grocery chains: one of a very small number which operates over 1,000 locations. Its main competitors are the national grocery chains IGA, Kroger, SuperValu, and Whole Foods; consolidated retail and warehouse chains, including Wal-Mart, Target, Kmart, Costco, Sam's Club and BJ's Wholesale Club; and several regional grocery chains, including BI-LO (operating under both its own name and that of its wholly owned subsidiary Winn-Dixie), Harris Teeter, Fresh Market, Piggly Wiggly, K-VA-T Food City, Food Lion, Ingles, and Rouses. Publix stores are found as far north as Clarksville, Tennessee, and as far south as Key West, Florida, while the westernmost location is in greater Mobile, Alabama. As of 2015, the state of Florida still has the largest number of stores, with 768, nearly three-quarters of the outlets.[16]

History

The first Publix Super Market in Winter Haven, Florida, circa 1940. It now exists as a thrift store.[17]

George Jenkins opened the first Publix market in Winter Haven, Florida, on Sept. 6, 1930—a 27 ft by 65 ft building at 199 West Central Avenue.[18][19][20] In 1934, that store made $120,000 in sales. In 1935, he opened a second market, the Economy Food Store, also in Winter Haven. Despite the Great Depression, his stores were financially successful.

In 1940, Jenkins, affectionately called "Mr. George" by his employees, mortgaged an orange grove to build Florida's first supermarket. His "food palace" had piped-in music, air conditioning, cold cases for frozen and refrigerated items, in-store donut and flower shops, and electric-eye automatic doors. During World War II, material shortages prevented him from building additional stores. In 1945, Jenkins purchased the 19-store All American chain of food stores and converted them into Publix Super Markets.[21]

In 1951, Publix moved its headquarters from Winter Haven to Lakeland, Florida, and built its first distribution warehouse there. At the same time, they began to close the All American stores, replacing them with Publix markets. In 1956, Publix achieved $50 million in sales, and $1 million in profit. In 1957, the donut shop in each store was expanded into a full-service bakery.

By 1959, Publix was the dominant supermarket chain in Central Florida, and began expansion to South Florida. In 1963, the company built a distribution center in Miami, and began providing deli services. In 1970, sales surpassed $500 million; they reached $1 billion in 1974, when the chain expanded to include Jacksonville, Florida.

In 1982, the company launched the Presto! ATM network; it soon installed ATMs in every Publix. Sales exceeded $5 billion in 1989.[22] The first Publix outside Florida opened in Savannah, Georgia, in 1991; distribution and manufacturing facilities in Lawrenceville, Georgia (a northeastern suburb of Atlanta) soon followed, as it began to expand into metro Atlanta in 1993. Publix further expanded into South Carolina (1993), Alabama (1996), Tennessee (2002), and North Carolina (2014).

Logo for the now defunct PublixDirect

With the launch of PublixDirect on September 24, 2001, Publix attempted to enter the online grocery business, in hopes of serving the Southeastern U.S. The slogan used was "Online Shopping, Home Delivery." This occurred during the dot-com crash, alongside competitor Webvan's well-publicized failure. Publix found that demand for online grocery shopping in the Miami testing area was not as great as the company expected, and shut down PublixDirect on August 23, 2003.

Publix celebrated its 75th anniversary in 2005. During that time, it used the slogan "It's Been Our Pleasure."

Standalone Publix in Pompano Beach, Florida, with typical architecture of early 21st-century stores.

In early 2005, Publix renamed its checkout section from "Common Area" to "Customer Service". This change coincided with a new color-and-design scheme of the store's interior signage, which replaced the aging coral, navy blue, and sea green design with emerald green, tan, and gray. The former employee uniforms also began to be phased-out; each district has a selected store where employees wear the old uniforms, until none remain in the warehouses.

Publix completed the implementation of its new point of sale terminals (PRICE — Publix Retail Improved Checkout Experience) in 2006, replacing the previous generation of IBM 4690 terminals. The newer system combines a Hewlett-Packard RP5000 terminal with a touchscreen system, and an Epson thermal printer. A separate LCD screen for customers lists the last several items scanned, the running total of the bill, customer savings, recipe ideas, and Publix advertising.[23][24] By September 2010, checkouts in all stores were expected to have card readers replaced with units featuring signature capture.

A converted Albertsons location in South Tampa, Florida

Publix Super Markets bought 49 Florida stores from Albertsons. The deal was announced on June 9, 2008, and was completed on September 9, 2008. It included 15 locations in North Florida, 30 in Central Florida and four in South Florida. The sale allowed Publix to operate four stores in a new market area for the company, Escambia County, Florida (the Pensacola area).[25]

On February 5, 2009, Publix opened its 1,000th store in St. Augustine, Florida, allowing the company to become one of only five U.S. grocery retailers to operate that many stores. The St. Augustine store is among Publix's first stores designed to be energy-efficient. The store includes motion sensor lights throughout the store, including on the freezer doors, and an overhead light system that can be controlled by each department.[26]

In 2011, Publix completed a rollout of Oasis, a new timekeeping and labor forecasting system, company-wide. Oasis replaced the outdated People Planner labor management system that Publix used for almost two decades. Oasis provides a more accurate labor forecast for stores to generate schedules that fit their business needs. Selected stores throughout the company piloted Oasis beginning in 2009. With Oasis, associates are able to view their schedules from their home computers and enter requests for time off into a self-service workstation.

On October 22, 2013, Publix said they will be selling the PIX convenience stores, thus exiting the convenience channel. Circle K Stores, Inc. purchased 13 of the 14 locations, while Max Arnold & Sons LLC bought the one in Tennessee. Publix will retain the PIX name.[27]

In April 2016, Ed Crenshaw is set to retire from his position as CEO. Todd Jones, president of Publix, will be the new CEO.[28]

On February 2, 2016, Publix announced plans to expand into Virginia starting in 2017, having signed leases for two new locations in Bristol and Glen Allen, located in the greater Richmond area.[29][30]

Market

Each store provides specific products and services in its grocery, deli, bakery, produce, floral, meat, and seafood departments. Some stores have valet parking, cafés, sushi bars, pharmacy departments, and/or a liquor store.

Along with this, Publix provides a comprehensive "special order" service. Irregularly-stocked or rare items from almost all departments, even some products carried only by Publix's competitors, can be ordered through this service. This service includes some products that are normally only found at health food stores, including organic meats, fruits, and vegetables, in addition to vegetarian and vegan products; hypoallergenic foods, and other specialty food items. This service can be used at any Publix customer service counter.

The customer service counter also provides check cashing, money orders, Western Union services, Rug Doctor rentals, and lottery tickets. Some stores also provide Ticketmaster and/or DVD rental services. In December 2005, Publix discontinued its photo processing service, replacing it with an exclusively online, or mail-order service via the Snapfish program.[21] The Snapfish agreement has since been terminated, and Publix no longer offers photo services.

Aprons

Aprons Simple Meals

A recent addition to the stores is its Aprons (formerly stylized with an apostrophe, i.e. "Apron's"[31]) cooking demonstrations, customers are encouraged to sample easy-to-make, nutritious dishes prepared at in-store kiosks and take a recipe card with them. All recipes are developed in-house, using easy-to-prepare or prepackaged ingredients, often available at the Aprons kiosk.[32]

Apron's Make-Ahead Meals

Publix, in 2005, introduced its Apron's Make-Ahead Meals concept, where customers could purchase six, eight, or twelve meals that they could assemble in-store. For an extra charge, an Apron's associate would prepare and assemble the meals. These were standalone stores located in Jacksonville and Lithia, Florida. In summer 2009, Publix closed both Make-Ahead Meals locations citing lack of customer interest.[33]

Aprons Cooking School

Publix operates nine cooking schools as part of its Aprons family. These schools are located in Boca Raton, Jacksonville, Orlando, Plantation, Sarasota, Tampa, Tallahassee, and Lakeland, Florida, and Alpharetta, Georgia. Classes are geared toward all cooks wanting to expand their repertoire and feature renowned chefs, authors, and cooking celebrities, as well as experienced cooking instructors. The classes are designed to teach skills including basic techniques and wine pairing. Publix also offers classes for children ages 8 to 12, with separate classes for 13- to 18-year-olds, and adults.[34]

Publix GreenWise Markets

The exterior of the Publix GreenWise Market in Tampa

Publix GreenWise Markets is a concept the company introduced, in response to the increase in the number and profitability of health food stores. GreenWise Markets were created to increase awareness of nutrition; it focuses on organic and natural items. These stores are similar to the Whole Foods Market chain. GreenWise Markets is an expansion of a concept that began in the 2000s; most regular Publix stores have a GreenWise section.[35] In addition to organic and traditional products, GreenWise Markets include salad and hot bars. The first six stores were set to be in Palm Beach Gardens, Boca Raton, Vero Beach, Tampa, Naples, and Coral Springs, Florida.[36] The first GreenWise Market opened on September 27, 2007 in Palm Beach Gardens.[37] The second Publix GreenWise Market opened in Boca Raton on May 29, 2008, located in Boca Village Square.[38] The third Publix GreenWise Market opened November 6, 2008, in Tampa's Hyde Park neighborhood.[39]

The interior of a Publix GreenWise Market

At this time, the company is focused on a "hybrid" concept where they integrate the greenwise concept into a traditional Publix store. These stores have a café, hot bar, and many items that you would find in a GreenWise store. A few of the locations are in Vero Beach, Naples, Tampa (Gandy Blvd), Viera, and Celebration.[40]

Publix Sabor

Publix Sabor Store in Lake Worth, Florida

Publix operates eight stores, branded "Publix Sabor" (sabor is Spanish for "flavor"), which cater to Hispanic Americans living in Florida and offer products for Hispanics. Four Publix Sabor locations are in Miami-Dade County in Greater Miami. They are the Hialeah Mercado location in Hialeah, the Miller Square Shopping Center in Kendale Lakes, and the Publix Sabor Coral Way Shopping Center location in Westchester.[41] One Publix Sabor, Ventura Downs, is in Buenaventura Lakes, Osceola County, in Greater Orlando.[41][42] A sixth location opened in Lake Worth in Palm Beach County in the summer of 2012.[43] Another location recently opened in the Little Havana neighborhood of Miami.

Publix Sabor locations have bilingual English-Spanish employees, open seating cafés, and a wide selection of hot foods. Publix offers cafés and hot foods because many Hispanic Americans grew up in foreign cities which had open public squares where people socialize and eat.[42]

Pharmacy

The official Publix Pharmacy brandmark, displayed in all stores

The first Publix in-store pharmacy was opened on October 30, 1986 in Altamonte Springs, Florida.[44] By 1995, one-third of Publix stores had a pharmacy and today, approximately 90% of Publix stores include a pharmacy. Publix Pharmacies consistently ranked number one for customer satisfaction in supermarket pharmacies in several surveys conducted by independent research companies.[45][46]

Free medications

Publix announced in August 2007, that it would offer several types of free antibiotics to its customers. Customers must have a prescription; they are given a maximum of a two-week supply.[47] Several medical professionals expressed concerns that this could contribute to an overuse of antibiotics which leads to antibiotic resistance, a serious public health concern.[48] These medications include:

These antibiotics are being offered to customers regardless of their prescription insurance provider.[47] Doxycycline Hyclate was removed from the list because of cost increases.[49] In May 2014, Cephalexin was removed from the list due to cost increases.[50]

In March 2010, Publix announced the launch of another free prescription, Metformin for Type II Diabetes, the generic of Glucophage. Publix provides the medication in 500 mg, 850 mg and 1,000 mg strengths. The only restriction is a 90-day supply or up to 360 500-mg, 270 850-mg or 225 1000-mg tablets, but refills are not limited.[51][52]

In August 2011, Publix began offering Lisinopril, an ACE inhibitor that is used to prevent, treat, or improve symptoms of high blood pressure, certain heart conditions, diabetes, and certain chronic kidney conditions, as another free prescription. Customers can get a 90-day supply of this prescription for free at any Publix Pharmacy, up to a maximum of 180 tablets. Lisinopril-HCTZ combination products are excluded.[50][52]

In May 2014, Publix began offering Amlodipine, a calcium channel blocker used to treat high blood pressure and chest pain (angina) as a free medication. Customers can get a 90-day supply of this medication (up to 180 2.5-mg or 5-mg tablets, or 90 10-mg tablets) free of charge.[50][52]

Publix also offers a wide variety of vaccinations, including free flu shots for "associates" (employees) and discounted flu shots for their immediate family members.[53]

The Little Clinic

In early 2006, Publix and The Little Clinic signed an exclusive agreement to open medical clinics within Publix stores. The first clinics were opened in the Atlanta, Miami, Orlando and Tampa markets in the first half of 2006. The Little Clinic health-care centers were staffed by nurse practitioners who can write prescriptions, provide diagnosis and treatment of common ailments and minor injuries, and offer wellness care like physicals, screenings, and vaccinations.[54] Effective May 9, 2011, Publix closed the Little Clinics in its stores in order to focus on its core pharmacy and grocery business.[55]

Current and former projects

In select markets, Publix is also conducting trials of other various specialties, including a cologne and perfume fragrance department, in conjunction with Camrose Trading.[56]

Publix is also experimenting with a gourmet deli at its Lake Mary Collection store in Lake Mary, Florida.[57]

Food World

In response to other grocery stores' aggressive discounting across the Florida market, Publix opened its first Food World store in September 1970 in Orlando, Florida.[58] The store marked the first under the Food World banner for Publix and would become the first of 22 more of the type before retiring the brand in 1985 because the stores were unable to turn a profit for Publix or give workers a percentage of their store's profits.[59] In November 1977 in Lakeland, Florida, Publix opened the Lake Miriam Food World which at 57,000 sq. ft. was its largest store in the Publix chain and also the largest store in the southeast. The store was Publix's first to feature barcode scanners.

DVD Kiosks

In September 2010, Publix reported it started adding Blockbuster DVD rental kiosks to its stores, with the movie rentals starting at $1 per day. In 2010, Publix completed its rollout of Blockbuster Express kiosks to its stores.[60]

In 2012, NCR sold its entertainment division, which includes the Blockbuster Express kiosks, to Coinstar, the owner of the Redbox DVD rental kiosks.[61][62] Blockbuster Express machines were replaced with Redbox machines in most stores by the end of 2012.

Publix Pix and Publix Liquors

Publix operated eleven Publix Pix gasoline-convenience stores. Locations were limited during the trial basis of the concept. In 2014, all Publix Pix locations were sold and the concept was discontinued. In addition is Publix Liquors, a stand-alone liquor store. The liquor sales will be in an area accessed via an entrance separated from the supermarket, as required by local laws. The company is modeling this after many other grocery chains. The company tested market response to liquor stores in the late 1980s, but closed the stores in 1989. It re-entered the market again in 2003 and has met with success since.[63] Publix opened its first stand-alone liquor store in November 2009, in a former Albertson's location in Orlando.

Crispers

In 2002, Publix invested in the Lakeland-based restaurant chain Crispers, which concentrates on health-conscious fare. It increased its stake in 2004 before purchasing the remainder of the company in 2007. In May 2011, Publix announced it had sold the Crispers chain to Healthy Food Concepts LLC. The stores had not performed well during the downturn and in recent years Publix closed several units, leaving the chain with 36 stores when the sale was announced.[64]

Presto!

Presto!
Operating area Southeastern United States
Members 2,444[65]
ATMs 1,055
Founded 1982
Website Official website

Presto! is an automated teller machine (ATM) network owned and operated by Publix Super Markets. There are over 1,055 Presto! ATMs in Florida, Alabama, Georgia, North Carolina, South Carolina, and Tennessee, all located at Publix retail stores. This network includes Point of sale (POS) capabilities, meaning that debit, credit, Electronic Benefit Transfer (EBT) Cash, or EBT Food Stamp cards can be used to make purchases at any Publix store.

Fees and the Network

Fees are charged for transactions and inquiries made on any card not in the Presto! network.

Some of the highest-volume Presto! network members are:

The Publix website offers an alphabetical listing of the more than 2,000 financial institutions that are members of the Presto! network.[66]

Working environment

Corporate headquarters building

Publix is organized into departments grouped based on similar skills, expertise, work activities, and resource use, such as human resources, marketing, public affairs, manufacturing, and distribution. All the departments have specific resources that help it reach the organizational task, and each department only deals with their specific area and problems. Stores are made up of seven departments (Customer Service, Grocery, Meat, Produce, Deli, Bakery and Pharmacy,) and are run by a department manager or assistant manager of that department. All departments are overseen by a Store Manager and Assistant Store Manager. When both of these managers are absent, operations are left to a Manager in Charge, typically a department manager or assistant department manager from Customer Service or Grocery.

The company, founded in 1930, has never had a layoff.[67] It has a tuition reimbursement program originally designed for degree-seeking students, but has also become available to those taking individual courses or technical training, including online courses. The program is available to all Publix associates who work an average of 10 hours per week for six months.[68]

In 1997, Publix reached a settlement in a class action lawsuit concerning gender discrimination filed by employees. Publix paid $81.5 million in damages to its female employees and made changes in its workplaces as a result.[69]

LGBT Policies

Publix declines to participate in the annual survey of the Human Rights Campaign which forms the basis for HRC's Corporate Equality Index.[70] For 2014, HRC assigned Publix a score of zero.[71]

In 2014, Publix was fined by the Board of Human Rights of Broward County, Florida for discrimination involved in the termination of an LGBT employee.[72] Upon appeal, the 17th Circuit Court found that the decision by the Board of Human Rights of Broward County "is not supported by competent, substantial evidence" and quashed the order.[73]

Publix announced that effective January 1, 2015, health coverage will now be available to same-sex couples regardless of place of marriage, as long as they are legally married.

Awards

Publix has won various local, regional, and national industry and philanthropic awards, among them are:[74]

In Consumer Reports' 2015 ranking of Grocery stores, Publix ranked No. 2.

Charitable activities

Publix regularly conducts charity drives raising money and food for such charities as Special Olympics, March of Dimes, Children's Miracle Network, United Way and various local food banks and soup kitchens such as Our Father's House Soup Kitchen[76] and Second Harvest North Florida.

Legal disputes

In 2003, Publix supported a successful bill that prevents owners from suing if their land is polluted by dry cleaning chemicals dumped on an adjacent property, if the adjacent property owners are on a state clean-up list. Publix lost a 2001 lawsuit filed by an owner whose property had been contaminated in this manner.[77]

On October 4, 2005, Publix sued Visa and MasterCard citing unfair business practices over their unannounced and non-negotiable increases in merchant account fees.[78] Wal-Mart won a similar lawsuit against Visa in 2004.

Publix stock

Publix stock is restricted: it can only be owned by current or former associates or board members and cannot be sold outside the company without first being offered to the company for repurchase.[79]

Publix offers stock to its associates through 3 programs: Profit plan (ESOP), Purchase plan, and 401(k) plan. The profit plan generally gives an associate who has worked 1000 hours in an anniversary year, 7-10% of the regularly pay earned in the form of free stock on March 1 of the following year. An associate must work three years to be vested in the plan. The plan is at no cost to the associate.

Publix associates may buy the stock outright in the Purchase plan; however, there is a 1-year restriction on buying stock once it is sold.

Publix matches 50% of 3% of eligible wages through the 401(k) plan, up to $750 per year in matched contributions.

In addition, Publix offers stock to its Board of Directors through a separate plan.

The stock pays quarterly dividends that have been steadily increasing since 2000 and yield just under 3 percent.

The stock was made available to associates in the late 1950s, priced at $2.50 per share. Discounting all splits, one share of Publix stock purchased in 1958 would be worth $23,200 in March 2013 (not including dividends). The stock has a compounded annual growth of 18% from 1958 to 2013. The price of Publix stock is currently $45.20 as of March 1, 2016.

Publix stock is quoted on the US OTC market under the code PUSH.[80] It is listed on the 2014 Fortune 500 list at #104.[81]

Locations

A Publix on Monument Road in Jacksonville, Florida
(As of March 2016)[1] Supermarkets GreenWise Markets Publix Sabor Cooking schools Event planning Total stores
Florida 755 3 7 8 31 765
Georgia 182 0 0 1 5 182
Alabama 61 0 0 0 2 61
South Carolina 55 0 0 0 5 55
Tennessee 38 0 0 0 3 38
North Carolina 11 0 0 0 5 11
Virginia (coming 2016) 0 0 0 0 0 0
Total 1,102 3 7 9 51 1,112

Supermarket, Sabor, and Greenwise are considered "stores." Cooking schools, and Event Planning are part of actual stores and therefore do not count towards total store counts. In 2011, Publix announced they would expand into the North Carolina market with its first store in Charlotte.[10] The first store opened in February 2014.[82]

Distribution centers are located in:[83]

Manufacturing facilities are located in:[83]

Support offices

Publix is organized into five divisions: Lakeland, Miami, Jacksonville, Atlanta, and Charlotte.

See also

References

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