Publix Service

"Publix is always at its best when the economy is at its worst," says Burt Flickinger in a Wall Street Journal article by Timothy W. Martin (4/23/09). "Competitors are now cutting back or contracting, and that’s when Publix sees the most opportunities for expansion," he adds. It’s true: Publix, which is employee-owned, opened 79 new stores last year and acquired another 49 from Albertson’s. By comparison, Kroger opened 60 stores, Whole Foods opened 20 and Supervalue added 14.

One attribute is at the heart of such success: Customer Service. Even though its short-term profits are down, "Publix is staying at full staffing levels and lowering prices in hopes of keeping its existing customers happy and attracting new ones." The approach actually is nothing new. The retailer’s founder, George Jenkins, built Publix on a simple philosophy of customer service. Wouldn’t you know it — "the same relentless focus … is helping the company through the current tough market."

That philosophy means that Publix president Todd Jones jumps in and start bagging to keep checkout lanes moving (his first job at Publix actually was as a bagger). It means that its delis are staffed by 8-10 people, not two like most supermarkets. It means that there’s usually a Publix employee handy to help shoppers find stuff. The Publix definition of customer service also extends to include its prices, which it has lowered by 20 percent on staple items, even as its own costs have increased. Publix plans to open another 30 stores this year, and its sales per square foot ($548) is second only to Whole Foods ($820).