[PDF]

Originally Posted by gypsychic

Really? Wow, they are really keeping one step ahead of the game.

That might happen because they have no choice and are in a bad position right now. They certainly don't want to go public. They even got rid of quarterly inventory bonuses for their employees recently.

[kyle19125]

Originally Posted by PDF

That might happen because they have no choice and are in a bad position right now. They certainly don't want to go public. They even got rid of quarterly inventory bonuses for their employees recently.

What's the thought behind that? Increased competition from specialty grocers like Trader Joe's, Whole Foods, Earth Fare, etc. who have expanded considerably over the past few years across the state? Or other factors?

[Carolina Knight]

Originally Posted by PDF

That might happen because they have no choice and are in a bad position right now. They certainly don't want to go public. They even got rid of quarterly inventory bonuses for their employees recently.

If Publix was in a bad position at the present, it would not be opening additional stores and distribution centers, entering new markets, and adding seven hundred jobs in corporate offices in Lakeland. Publix is opening additional stores and distribution centers, entering new markets, and adding seven hundred jobs in corporate offices in Lakeland. I would say Publix is in a good position.

[chopchop0]

Originally Posted by kyle19125

What's the thought behind that? Increased competition from specialty grocers like Trader Joe's, Whole Foods, Earth Fare, etc. who have expanded considerably over the past few years across the state? Or other factors?

Stock market is doing well, maybe they need the cash and see this as a good opportunity to raise some.

The grocery business is notoriously tough and low margin though

[kyle19125]

Originally Posted by Carolina Knight

If Publix was in a bad position at the present, it would not be opening additional stores and distribution centers, entering new markets, and adding seven hundred jobs in corporate offices in Lakeland. Publix is opening additional stores and distribution centers, entering new markets, and adding seven hundred jobs in corporate offices in Lakeland. I would say Publix is in a good position.

Expansion into other markets is often seen by companies as a way to correct negative or flat performance in existing markets, and isn't always reflective of an overall "good position".

[Carolina Knight]

Originally Posted by kyle19125

What's the thought behind that? Increased competition from specialty grocers like Trader Joe's, Whole Foods, Earth Fare, etc. who have expanded considerably over the past few years across the state? Or other factors?

Increased competition from specialty organic and gourmet grocers, limited assortment/discount grocers, Hispanic and ethnic grocers, hypermarkets, and wholesale clubs have helped or harmed supermarkets in Florida. Publix has improved itself in specialty organic grocery with its three Publix Greenwise Market stores and its Publix Greenwise products, and in Hispanic grocers with seven Publix Sabor stores. Other supermarkets have responded by converting stores to other banners and closing stores.

[Carolina Knight]

Originally Posted by kyle19125

Expansion into other markets is often seen by companies as a way to correct negative or flat performance in existing markets, and isn't always reflective of an overall "good position".

If I am a retailer having stores with negative or flat performances in existing markets, I would not be expanding into additional markets. Publix is not in this position.

If I am a retailer having stores with positive performances in existing markets, I would expand into additional markets. Publix's stores are performing well enough to grow the banner through updates at existing stores, additional and replacement stores, and entry into new markets.

[Carolina Knight]

Originally Posted by chopchop0

The grocery business is notoriously tough and low margin though

The grocery retail industry is tough indeed. A shift is occurring with new participants in varying grocery retailing segments entering Florida, successful grocery participants investing in themselves, and struggling grocery participants raising white flags of surrender.

[kyle19125]

Originally Posted by Carolina Knight

Increased competition from specialty organic and gourmet grocers, limited assortment/discount grocers, Hispanic and ethnic grocers, hypermarkets, and wholesale clubs have helped or harmed supermarkets in Florida. Publix has improved itself in specialty organic grocery with its three Publix Greenwise Market stores and its Publix Greenwise products, and in Hispanic grocers with seven Publix Sabor stores. Other supermarkets have responded by converting stores to other banners and closing stores.

Greenwise has been pretty stagnant for Publix actually and a bit of a smokescreen as "Greenwise" products often aren't as "green" as the competition's, which has probably led to the exodus of those truly into those products to places like Whole Foods, Trader Joe's, Earth Fare or Lucky's and would perhaps explain their expansion into GA and the Carolinas if the traditional grocery segment had flatlined in terms of profit here in FL. Furthermore if Publix were in fact competitive with their Greenwise format stores we would have seen further expansion beyond the few that have been open for a good 8-10 years now, along with increased availability of those products in their regular stores. I have long argued that their separation of Greenwise products from regular production products handicaps the growth of the Greenwise label.

[kyle19125]

Originally Posted by Carolina Knight

If I am a retailer having stores with negative or flat performances in existing markets, I would not be expanding into additional markets. Publix is not in this position.

If I am a retailer having stores with positive performances in existing markets, I would expand into additional markets. Publix's stores are performing well enough to grow the banner through updates at existing stores, additional and replacement stores, and entry into new markets.

We don't know how Publix is doing since they're not publicly traded and as already mentioned expansion is something many companies who see market-share dwindling do in order to drive revenue/profits. The elimination of quarterly bonuses also isn't the sign of a thriving company, nor is the sudden desire to "go public".