Through a special arrangement, what follows are excerpts of a current article from Refrigerated & Frozen Foods Retailer magazine, presented here for discussion.
Is there anything that Publix doesn't do extraordinarily well? Shoppers and vendors love it, it wins lots of awards and makes lots of money.
"There's nothing particularly over the top about the way they do things; they just do what they do very well," said Ken Harris, managing director, Cannondale Associates.
Mr. Harris, who authors Cannondale's annual Power Ranking Survey, noted that the stores have wide, clean aisles, brightly lit stores and friendly service. And while anybody can have wide aisles and good lighting, it's a real trick to have consistently clean stores and friendly associates.
"Being able to run stores that are pleasant to shop isn't easy," he said. "These are fundamental things they've been able to master. They do so many little things incredibly well that it builds into a store experience, and that makes people enamored of Publix."
The Lakeland, Fla.-based chain is the best supermarket in the country when it comes to satisfying its customers, according to the American Customer Satisfaction Index. It's been at the very top of the list since the National Quality Research Center, Ann Arbor, Mich., began the annual rankings back in 1994. This past year, it scored an 83 out of a possible 100, well ahead of Kroger (75), Supervalu (74) and Whole Foods Market (73), the next three on the list.
"Being associate owned and operated allows our associates to take a personal interest in our business and our customers' shopping experiences," said Maria Brous, director of media and community relations for Publix. "Our mission is to be the premier food retailer in the world. To that end, we will provide our customers with stellar customer service and quality products at competitive prices."
Kevin Janiga, president of Winsights Marketing, said Publix provides "a very pleasant shopping experience. Customer service is very good and the employees truly act like they enjoy working there. The stores are uncluttered, in-stock and clean."
Said another observer, "Publix has used customer service as a major differentiator versus its competition. This includes being in stock at rates better than the competition as well as having more and better-trained employees. They are in stock, both case and features, and they have well-trained and committed employees.
"I think they have more full timers than the industry average, which means better commitment and knowledge. This is important when you are selling and merchandising more volatile sections like frozen and refrigerated foods. In a soft economy, I don't see them moving away from this (a strong service model) because, like Wegmans, it is part of the culture. They may have to focus a little more on price, but they have good perimeters and will find a way to maintain margins."
Discussion Questions: What are some obvious and less obvious reasons Publix has been so successful? What's their secret to achieving superior customer service?