Publix Super Markets has recently become the United States’ most profitable grocer and currently holds a whopping 52.8% of the grocery market in Florida. This comes as no surprise to most Florida residents. However, the grocer is beginning to gain public attention as people have begun to wonder just how this employee-owned company can be so profitable. Forbes magazine recently recognized the Publix business model as a “Walmart Slayer”. At a time when companies such as Walmart and McDonald’s are taking a PR beating because of unfair employee treatment, Publix is standing out as a beacon of light.
So just how does this Southeast US based grocer consistently outperform national names? The answer is simple: if the company does well, the employees do well. This employee-owned business model gives incentive to each and every Publix employee to improve the bottom line. Publix employees enjoy regular dividends, and as you can guess, those dividends get larger with good company performance. With all of this being said, it is easy to see why Publix is consistently praised for its excellent customer service.
Publix has been implementing this employee and customer-focused business model since 1930. When George Jenkins first started the company, he was considered crazy for offering simple amenities such as chairs to sit down in and air conditioning. Publix thrived through the Great Depression because of its focus on employee and customer relations. This customer focus can be seen today with Publix’s YouTube channel dedicated to helpful cooking tips and its organic line of Publix brand goods.
Publix recently took the top spot in a nation-wide customer satisfaction index and has seen sales steadily increase over the past few years. As Publix has begun to expand into new markets, national grocers are taking notice. Maybe George Jenkins wasn’t so crazy after all.