DISCUSSION

Publix Tests Larger, Organic Hybrid Format

Written by Tom Ryan
By Tom Ryan

Publix is testing a 60,000 square foot prototype store in Naples, FL, that will meld many of the features of GreenWise Market, its neophyte concept emphasizing natural, organic and eco-friendly products, with its conventional stores.

The extra space - about 15,000 square feet larger than the average Publix location - will add a broader selection of natural and organic goods and cafe-style seating for customers to eat meals in the store. The many preprared food counters at GreenWise - including The Carvery, Mediterranean Oven, Pacific Wok and Soup Station - may be reduced in number.

The store, to debut in the second half of 2010, will be branded as a conventional Publix, rather than GreenWise Market.

Publix just introduced a shelf tag program to better identify items as natural, organic and earth-friendly products throughout its store system as Publix's conventional store customers are also increasingly interested in organic and natural products, spokeswoman Shannon Patten told Refrigerated Foods & Frozen Retailer. So in addition to continuing to test smaller GreenWise Market concept, Publix wanted to enhance its better-for-your stance at its traditional stores. "We want to test that concept as well," Ms. Patten said.

Publix only has three GreenWise locations in Palm Beach Gardens, Boca Raton and Tampa.

Suzy Badaracco, a food industry forecaster at Culinary Tides, told The Ledger in Florida, that the prototype goes against the current trend calling for smaller grocers with a more intimate, "neighborhood" feel. But she said it could be successful because only Whole Foods is doing such a format on a widescale.

"To go big, but also organic and green completely fits," said Ms. Badaracco. "The only one doing it well right now is Whole Foods. There's not a lot of competition there."

But BNET Retailer noted that many grocers are testing what it calls the "hybridized supermarket" concept. A Kroger Signature format first opened in late 2008 features wider product selections organics and all-natural foods, video rentals, fully cooked entrées, health and beauty care, a photo lab, and a play center for babysitting shoppers' kids. In January 2009, a 100,000-square-foot Signature location - Kroger's largest store - opened in the Houston area. It includes a "Chef Shoppe" featuring a chef on hand to prepare meals for customers, a extensive wine section guided by an on-site wine steward, a "Kitchen Place" offering an assortment of kitchenware, a "Nature's Market" offering natural food and organic selections, and a drive-thru pharmacy offering $4 generics.

Hybridized supermarkets, according to the BNET Retail article, have also been opened up over the last few years by Supervalu, HEB, A&P and Meijer.

Discussion Questions: What do you think of the potential for Publix's large format prototype? Do you see opportunities across the U.S. for bigger organic/natural food stores or conventional/natural hybrids such as the new Publix prototype?

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