Publix
Journal of Business Case Studies – Fourth Quarter 2007
Volume 3, Number 4
A Retailer‘s Steady Growth Strategy: Should Publix Stay National Or Go Global?
Bahaudin G. Mujtaba, (E-mail: Mujtaba@nova.edu), Nova Southeastern University Erica Franklin, (E-mail: efrankl@nova.edu), Nova Southeastern University
ABSTRACT Publix Super Markets, Inc. is a Florida-based grocery chain which has over 120,000 employees and annual sales in 2005 of $20.7 billion. Presently, Publix serves over one million customers every day and is one of the largest employee-owned companies in the world. Publix is one of Florida’s premier supermarkets and has responded to most cultural trends in the grocery market-organic foods; natural foods, health foods, ethnic ingredients, prepared meals, etc. Publix has enjoyed great success in the grocery industry and has expanded in many states. With the advent of globalization affecting almost every industry, the supermarket/food retailing industry has joined the trend. Domestic and international food retailers across the globe have begun to internationalize at a rapid rate and open operations around the world. However, as you will see, the growth of supermarket chains beyond their home countries has been done mostly by European and Asian companies. With the exception of Wal-Mart, few U.S. food retailers have expanded abroad. Currently there are no plans for Publix to expand internationally but this case seeks to examine the possibilities of Publix making a step toward going abroad and highlights the various factors in the global environment that may directly or indirectly affect the company.
INTRODUCTION
A
s of August 2006, Publix was operating 833 stores. Publix operates 642 stores in Florida, 164 stores in Georgia, 37 stores in South Carolina, 27 stores in Alabama, and 13 stores in Tennessee. Publix carries items ranging from food products to personal care and household goods. The company also has their own line of private label goods
Volume 3, Number 4
A Retailer‘s Steady Growth Strategy: Should Publix Stay National Or Go Global?
Bahaudin G. Mujtaba, (E-mail: Mujtaba@nova.edu), Nova Southeastern University Erica Franklin, (E-mail: efrankl@nova.edu), Nova Southeastern University
ABSTRACT Publix Super Markets, Inc. is a Florida-based grocery chain which has over 120,000 employees and annual sales in 2005 of $20.7 billion. Presently, Publix serves over one million customers every day and is one of the largest employee-owned companies in the world. Publix is one of Florida’s premier supermarkets and has responded to most cultural trends in the grocery market-organic foods; natural foods, health foods, ethnic ingredients, prepared meals, etc. Publix has enjoyed great success in the grocery industry and has expanded in many states. With the advent of globalization affecting almost every industry, the supermarket/food retailing industry has joined the trend. Domestic and international food retailers across the globe have begun to internationalize at a rapid rate and open operations around the world. However, as you will see, the growth of supermarket chains beyond their home countries has been done mostly by European and Asian companies. With the exception of Wal-Mart, few U.S. food retailers have expanded abroad. Currently there are no plans for Publix to expand internationally but this case seeks to examine the possibilities of Publix making a step toward going abroad and highlights the various factors in the global environment that may directly or indirectly affect the company.
INTRODUCTION
A
s of August 2006, Publix was operating 833 stores. Publix operates 642 stores in Florida, 164 stores in Georgia, 37 stores in South Carolina, 27 stores in Alabama, and 13 stores in Tennessee. Publix carries items ranging from food products to personal care and household goods. The company also has their own line of private label goods
References: 1. 2. 3. Appleson, G. (2006, August 14). Grocery chains blur retailing lines as they bottle Wal-Mart. Knight Ridder Tribune, P. 1 Awbi, A. (2006, June 16 Tesco Shifts Focus as foreign business booms. Food & Drink Europe.com. Retrieved August 21, 2006 from http://www.foodanddrinkeurope.com/news/ng.asp?id=68453. Klintenberg, H. (2003). Japanese Food Market Consumer Market Characteristics, and the foreign entry situation from a Swedish Perspective. Gotenborg, Dept. of Human and Economic Geography. Retrieved August 21, 2006 from http://www.handels.gu.se/epc/archive00003058. Ikea to move into specialty grocery market. (2005, July 11). Food & Drink Europe.com Retrieved August 24, 2006 from http://www.foodanddrinkeurope.com/news/printNewsBis.asp?id=61218 Jackson, J. (2006, April 6). Experts discuss bird-flue response: Publix plan for curbside delivery is an example of how business for the worst. Knight Ridder Business Tribune. Retrieved August 21, 2006 from ProQuest. Mujtaba, B. G. (April 2007). Cross cultural management and negotiation practices. ILEAD Academy Publications; Florida, United States. ISBN: 978-0-9774211-2-1. Website: Ileadacademy.com. Mujtaba, G. B. & Johnson, W., (2004). Publix Super Markets Inc.: Achieving Customer Intimacy. Case 15; pages 375-392. In William Johnson and Art Weinstein‘s book entitled Superior Customer Value in New Economy. Second Edition. CRC Press. Orgel, D. (2002, June 17). U.S. Supermarket Operators need a foreign policy. Supermarket News. Retrieved August 21, 2006 from ProQuest Database. Pint Sized Imports. Progressive Grocer (2006, May 15). 8, p. 18. Retrieved August 21, 2006 rom ProQuest Database. Publix. (2006, March 2). Publix Announces 4th Quarter and Annual Results for 2005. Retrieved August 21, 2006 from www.publix.com. Publix. (2006, April 13). Publix Announces Annual Dividend. Retrieved August 21, 2006 from www.publix.com. Publix. (2006). Publix website visited on August 21 2006 at http://www.publix.com 31 4. 5. 6. 7. 8. 9. 10. 11. 12. Journal of Business Case Studies – Fourth Quarter 2007 13. 14. 15. Volume 3, Number 4 16. 17. Publix plans natural prototypes. (2005, May 13). South Florida Business Journal. Retrieved August 21, 2006 from http://www.bizjournals.com/southflorida/stories/2005/05/09/daily52.html. Grocer to add flavor with Hispanic themed stores. (2005, March 7). South Florida Business Journal. Retrieved August 21, 2006 from http://www.bizjournals.com/southflorida/stories/2005/03/07/daily5.html. Ideal Media, LLC. (2006). Restaurant Business: Street smarts for the entrepreneur. Retrieved August 21, 2006 from http://www.restaurantbiz.com/index.php?option=com_content&task=view&id=13355&Itemid=93. Publix. (2006). Publix Super Markets Inc. Annual Report to Stockholders: The Character of Publix. Publix (2006, February 6). Publix and the Little Clinic to open walk-in medical clinics. Retrieved September 16, 2006 from www.publix.com NOTES 32