SWOT Analysis of Publix. Publix Super Markets Inc is a chain supermarkets employee-owned company. George W. Jenkins laid the foundation of the private corporation on 6 September 1930. The headquarter of the company is in Lakeland, Florida, USA.
Some of the main products and services of Publix are as follows;
- Real Estate
- Home delivery
- Online Shopping by Instacart
- Money services
- Event planning
- Food & Grocery
Key statistical facts and figures about Publix are as follows;
- The annual revenue of Publix in 2022 was 54.5 billion US dollars
- Out of which, the net earnings of the chain supermarket brand was 2.92 billion dollars
- Approximately 240 employees are working for the company to manage its operations
Publix’s main brands are as follows;
- Publix Sabor
- GreenWise Market Store
- GreenWise Products
Some of the top competitors of Publix are as follows;
- Harris Teeter
- Whole Foods Market
Today, we’ll discuss the swot analysis of Publix. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the supermarket brand. Here’s the swot analysis of Publix as follows;
Strengths of Publix
Some of the main strengths in the swot analysis of Publix are as follows;
Publix has established a strong database of loyal customers and a good brand reputation; it has helped the company to increase its revenue stream and profitability. The supermarket earned the trust and confidence of customers by staying in the business for a very long time.
According to an estimate, Publix ranked under the list of Fortune Top 100 Companies in 2010 that are best for employees to work for. It has attracted the attention of customers after its publications.
The goal of the objective of every business is to increase the company’s revenue and profitability. But only a few of them like Publix manage to earn billions of dollars. However, the strong financial position of the supermarket allows the company to take the following steps;
- Invest in new projects
- Allocation for Research and Development
- Innovation and Creativity Experiments
The probability of a company’s revenue and profitability would increase if it has got a vast geographical presence. Publix has got a great geographical market presence in the USA. According to an estimate, Public has a network 1326 of chain stores and location points in 7 states of the US; the company is to open up more stores and strengthen the company’s geographical position.
Brand & Product Portfolio
Publix has got a diversified product and brand portfolio. Various products and brands are operating under the umbrella of Publix supermarket. It helps the company in various ways;
- Reduce the risk factor
- Increase sources of earning
- Product and brand variety for customers
Weaknesses of Publix
Some of the main weaknesses in the swot analysis of Publix are as follows;
Limited Market Presence
Publix is only operating its business in the US and the company hasn’t gone global; outside of the US market. The chain supermarket should expand its operations across the US in other states, it would help the company to increase its revenue and profitability and reduce the risk factor.
It is no doubt that a large number of employees helps you to efficiently perform various operations. But the problem with having a large workforce is that it increases the operational expense. Along with decreasing the company’s net income and profitability, it is also very difficult to manage a large number of employees.
Publix is one of those companies that just can’t avoid becoming involved in lawsuits and legal cases. Some of the recent lawsuits filed against Publix are as follows;
- Gender Discrimination: its negative affected the reputation and caused bad word-of-mouth marketing
- Religious Discrimination: the company paid the penalty as compensation, and it jeopardized the company’s brand image to a great extent
Opportunities for Publix
Some of the available opportunities in the swot analysis of Publix are as follows;
Online shopping and e-commerce stores have become a great part of our lives, and their acceptance and adaptability have increased significantly. Publix is one of the top chain supermarket brands in the US; growth and expansion of the company’s e-commerce would open the door to a lot of new young customers.
Publix is operating its business in the retail chain supermarket industry for a very long and the company has established a strong name for itself. Food and Beverage Restaurant is a growing field with a lot of potential, Publix should include Food & Beverage under its portfolio. Launching new restaurants along with chain retail supermarkets would help the company to increase its market share.
Publix should take advantage of the cheap labor by expanding its business in developing markets. It would provide the company access to cheap labor and source of raw materials. Most importantly, it would create job opportunities for the locals.
Threats to Publix
Some of the potential threats in the swot analysis of Publix are as follows;
The retail supermarket is a very easy type of business model that any wealthy entrepreneur could enter the retail industry. There is almost no product differentiation in the daily routine food items, and that’s why customer loyalty is very low in the retail industry. Customers would buy the substitute product wherever they find it.
The global economy is going through a recession phase due to high inflation, high oil price, interest rate, and high unemployment rate. All of these factors decrease the purchasing power of people, and people won’t buy things when they have got a limited source of income.
Conclusion: Publix SWOT Analysis
After an in-depth study of the swot analysis of Publix; we have realized that Publix is the world’s leading retail chain supermarket brand. If you are learning about Publix, then you should keep in mind the above-mentioned internal and external factors impacting the brand.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.