Of course, we all know that shopping at Publix isn’t as cheap as shopping at other supermarkets around the country, and that has many people wondering why it is so expensive? Publix is a staple in the south, but it’s also one of the most expensive grocery stores around. Why Publix So Expensive? keep reading.
- The supermarket chain offers exclusive products and services not found at other stores, but are these perks worth the extra money?
To answer Why Publix So Expensive?, let’s take a look at some of
the main reasons why Publix groceries are more expensive than other stores in the area.
- Superb customer service
If you’ve ever had to use customer service at Publix, you know just how helpful they are. Their employees seem to really love working there and really love interacting with customers. They’re always going out of their way to help shoppers find what they’re looking for and also offering personal service suggestions, like suggesting that a product may be good for someone who has food allergies or picky eaters in their household. While it might be tempting to tell yourself that other stores have similar customer service (hey—Target!), but it’s hard to argue with facts.
- The store doesn’t have any middle managers
As a national brand, Publix’s 1,200 stores are all managed from headquarters in Lakeland, Florida.
- Managers know who their boss is, as Fortune put it.
- The company also gives its store managers—who are called store directors—more authority than they would have at most grocery chains.
- In a 2012 piece, trade publication Progressive Grocer noted that most supermarket managers operate with little autonomy or decision-making power.
- At Publix, though, managers get to make decisions like what kind of information to display on in-store signs and which vendors they want to work with.
- Employees are underpaid, thus under appreciated
The average employee at Publix makes $8.79 per hour, which is well below Florida’s minimum wage of $7.93 and well below minimum wages in other states as well. However, one positive aspect of working at a supermarket like Publix is that there are many locations throughout South Florida so people who do live close to a location may get paid time off on holidays. Also, their employee benefits program will provide comprehensive medical coverage and a 401(k) match to eligible employees. However, while they have an Employee Stock Ownership Plan (ESOP), store level employees don’t directly benefit from it since it applies only to managers and above.
- Poor employee retention leads to higher prices due to extra training costs
Employee turnover can be expensive, especially when you consider that an employee has to be trained from scratch by another staff member.
- That takes time and costs money.
- Plus, employees have to get used to their new managers, peers, and work environments; it’s not a comfortable experience for anyone involved.
- When you see employees jumping ship every few months, it means your company is having trouble keeping them around long enough to start learning its ropes.
- If you want your store to remain successful and profitable in tough economic times, then management has to figure out why they aren’t keeping good workers around and fix what needs fixing before prices go up even more than they already are.
- The grocery store sells a lot of touristy items
Despite its coastal location, Florida is a popular destination for tourists from around the world, especially those visiting Disney World. And yes, it’s important to carry the items you know will attract out-of-towners.
f you live near a tourist area and don’t shop at Publix all that often, you probably think nothing of grabbing your shopping list and heading to your local store. But before you do anything else (like loading up on Blue Bunny ice cream), remember that almost every item in an international grocer’s freezer section was probably made overseas by low-wage workers. That alone should be enough to make you reconsider purchasing even something as innocent as an Edy’s Butter Pecan Ice Cream Bar (manufactured in Turkey).
- Store employees believe in the customer is always right policy which can be costly for the company
While many retailers are trying to lower costs and maintain affordable prices, Publix employees do exactly the opposite.
- This may seem odd at first, but it’s true.
- The employees believe that customers are always right, even when they’re not. In fact, there’s an official welcoming committee for all new customers in which store workers greet shoppers with a free smile and offer to assist them if they have any questions or problems during their visit.
- This may seem like a nice gesture but it actually hurts companies because of how much it costs in terms of employee time, yet companies like Publix continue to do so because they know that happy customers will ultimately return more often than unhappy ones, who’ll leave and never come back again.
- Marketing and promotions are popular with the grocer. Can you blame them?
It’s easy to assume that larger companies are so successful because they spend more money on advertising than their competitors. But that’s not always true, especially when it comes to grocery stores. For example, while most people shopping at Walmart or Target don’t need a reminder of where they are and what store they are in, Publix employees will remind you anyway—on average, 13 times per visit. And guess how much it costs them? $0.00 As a result of their various promotions and programs, however, customers often spend more per trip than at other grocers.
- The company treats its employees well, so they care about quality products. This drives up prices.
It’s not enough to say that Publix is simply a higher-end version of other grocers. If it were, its prices would be lower.
- However, many of their products are top quality and therefore have a higher price tag to match. A prime example is their premium coffee.
- They often run promotions where you can get free coffee for buying groceries—but even if you don’t buy those groceries at Publix, you can still redeem your coupon at any of their locations across South Florida.
- The company sells high-quality goods that last longer; we all know some stores (especially ones in malls) just sell cheap goods that fall apart quickly or stop working altogether after a few months or years of use.
- Other stores charge more because they think people will pay it (and they do.) The lesson here is that if customers don’t keep an eye on prices they end up paying more than they should.
