Publix Super Markets, Inc. BB #:110909 Lakeland, FL, has long dominated the grocery landscape in Florida, and that remains the case, although competition has intensified in recent years.
Traditionally, the company’s competition has included Southeastern Grocers, based in Jacksonville, which operates about 450 locations under the Winn-Dixie, Harveys Supermarket, and Fresco y Más banners in Florida, Alabama, Georgia, Louisiana, and Mississippi.
Southeastern Grocers reported sales gains of nearly 20 percent in 2021, versus almost 7 percent for Publix, but its annual sales are only about 20 percent of Publix’s total.
Another regional chain, Piggly Wiggly, has 530 stores in 17 states, including 19 in Florida, while the Hispanic-tailored chain Sedano’s, operating in Florida since 1962, has 34 stores in the Miami and Orlando areas today.
In the past, Publix’s dominance in Florida has led chains such as Albertsons, Food Lion, Sweetbay, and others to pull out of the market after making efforts to gain a foothold in the state.
“Publix has been able to fend off potential competitors like Albertsons by positioning itself as a true local player,” says Carol Spieckerman, president of Spieckerman Retail in Bentonville, AR.
“Its intentional local sourcing strategy reinforces this advantage,” she says. “Publix and Florida are inextricably associated, and that plays to Publix’s advantage in this highly competitive market.”
Demographics are playing a role in escalating competition, as the state’s younger adult segment has been growing fast. More than 600 new residents moved to Florida per day in 2021, according to Datex.
As a result, chains ranging from Walmart and Aldi to Whole Foods, Sprouts Farmers Market, and Lucky’s Market have been expanding in the Sunshine State, especially in bigger cities like Tampa, Orlando, and Miami. Walmart has grown to 341 locations in Florida and Aldi to 197 stores.
Publix, however, retains a strong share of the market. A widely cited 2020 study conducted by Shelby Market Research found Publix’s share to be 60.2 percent in South Florida, versus 12.5 percent for second-place Walmart; 52.9 percent in Central Florida, versus 18.9 percent for Walmart; and 46.6 percent in North Florida, versus 20 percent for Walmart.
Figures from IRI show slightly less dominance, with Publix accounting for 37 percent of grocery sales statewide, versus 26 percent for Walmart, as of 2021, with no other chain above single digits. These figures exclude prescription medications, apparel, and fuel. They also do not include key competitors such as dollar stores and Costco.
Many experts believe the intensifying competition in its home market is Publix’s greatest challenge going forward, but they also believe the company is more than capable of withstanding the threat.
“Publix enjoys enviable loyalty and hasn’t rested on its laurels,” Spieckerman says.
This is an excerpt from the Florida Supplement in the September/October 2022 issue of Produce Blueprints Magazine. Click here to read the whole supplement.
