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Publix Super Markets SWOT & PESTLE Analysis

ID : 52244053| Mar 2020| 15 pages

COMPANY PROFILE -Publix Super Markets

Business Sector :Retail

Operating Geography :United States

About Publix Super Markets :

Founded in 1930, Publix Supermarkets Inc., along with its subsidiaries operates retail food supermarkets. Headquartered in Lakeland, Florida, Publix Super Markets was founded in 1930 by George W. Jenkins. It is a private corporation that is wholly owned by present and past employees and members of the Jenkins family. It is the largest and fastest-growing employee-owned supermarket chain in the United States. As of 2019, it employed almost 202,000 people at its 1,211 supermarkets, cooking schools, corporate offices, grocery distribution centers and manufacturing facilities. It provides various grocery products, including dairy, produce, deli, bakery, meat, and seafood; and health and beauty care, general merchandise, pharmacy, floral, among other products and services.
The USP or unique selling proposition of Publix Supermarkets Inc. lies in being the largest employee-owned company in the US.

Publix Super Markets Revenue :


$36.09 billion – FY year ending 29thDec 2018 (y-o-y growth 4.4%)
$34.56 billion – FY year ending 30th Dec 2017 (y-o-y growth 1.6%)
$33.99 billion – FY year ending 31st Dec 2016

Competitive Analysis of Publix Super Markets

SWOT
PESTLE
The SWOT analysis for Publix Super Markets is presented below:
Strengths
Weaknesses
1. Ranked 21 on Fortune 100 Best Companies To Work For in 2017
2. High employee diversity
3. Annual turnover rate is as low as 5% against retail industry average of 65%
4. Wide range of product portfolio
1. Intensive regional operations
2. Product recalls
Opportunities
Threats
1. Focus on digital marketing/social media
2. Expansion in emerging markets
1. Fierce competition by other supermarket brands
2. Increasing labour and inventory cost
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Detailed SWOT Analysis of Publix Super Markets

 

Strength

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Weakness

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Opportunity

1. Focus on digital marketing/social media: Publix has been a late comer to most of the tech savvy initiatives including social media. It went on to open its Twitter account only after Walmart and Whole Foods Market began using it for their marketing. In 2015, Publix used the hashtag #MyPublixStory to engage with customers on social media for the first time. More recently it got into grocery delivery business with Instacart and is ramping up its digital technology infrastructure to offer same-day delivery via Instacart in all Publix markets by 2020.

2. GreenWise Market paving way for attracting a new segment of customers: Publix announced the opening of the GreenWise Market in Tallahassee, Florida. This store follows the rebooted store concept which was initially planned out in 2008, but which was postponed after the company revamped its vision. The new GreenWise Market has food as its primary point of focus and will be only half as big as most Publix stores. Apart from food, the store will also have a specially designated “Care” department offering products like natural soaps and supplements, and a “Find” department which provide customers with a wide selection of wine and cheese pairings. The store aims to rope in the youth, primarily students, as its target customers and hopes to build a new customer base which is attracted to the fresh food offerings, in-store eateries and lounge space that the store offers. The desire that this customer segment has for customization, convenience and organic, sustainable food is fulfilled through this store model. The company hopes that bringing in a new customer category will help to promote growth.

3. Private labels earn plump revenue and widen brand reach: The Publix stores always ensure quality and personalization for their customers. This has helped it to become one of the popular supermarket chains with a plethora of its own well-known brands. In 2017, Store Brands recognized Publix as being the Retailer of the Year. One of Publix’s goals is to maintain customer loyalty towards products and to encourage them to try out new products like the Tomato Garlic Marinated Mussels available in the Publix Premium line. The launch of its Publix Premium Limited Edition Ice cream is another example of Publix promoting its private brands. The Publix Brand has more than 3,000 SKUs and is responsible for the greater part of its private brand sales. The Harvard Business Review has revealed that while most retailers get about 14% of their sales from private label products, Publix is able to gain 20%. The company claims that the Publix brand is as good as the national brands but available at lower rates. Publix however does not promote its brands as value brands but rather seeks to establish them as standalone brands of the same caliber as other popular brands. It is to the credit of its brands that they managed to stay afloat even during the Great Recession of the 2000s.

Threat

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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Publix Super Markets Analysis Report
1. Forbes: America’s largest companies- https://www.forbes.com/companies/publix-super-markets/

2. 2017 people’s companies that care: https://www.greatplacetowork.com/best-workplaces/companies-that-care/2017

3. Modern grocery and the emerging-market consumer: A complicated courtship- https://www.mckinsey.com/industries/retail/our-insights/modern-grocery-and-the-emerging-market-consumer-a-complicated-courtship

4. Solid customer service no longer enough for Publix as competition heats up- https://www.tampabay.com/news/business/retail/solid-customer-service-no-longer-enough-for-publix-as-competition-heats-up/2310065

5. The incredible shrinking store- https://www.businessobserverfl.com/section/detail/the-incredible-shrinking-store/

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Publix Super Markets SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Publix Super Markets SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/publix-super-markets/ [Accessed 02 Jul, 2020].

In-text: (SWOT & PESTLE.com, 2020)

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Publix Super Markets SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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Publix Super Markets SWOT & PESTLE Analysis
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