Publix GreenWise Markets
Natural and Organic Products Go Mainstream
As supermarket chains go, Publix is a big one. With 1,005 stores in five states and 140,000 “associates”—97,000 of whom own a piece of the multi-billion-dollar pie ($6.4 billion in the first quarter of 2009 alone)—it’s no longer just the place where you pick up your weekly groceries. It’s an institution. So, when Publix decides to invest in natural, organic and earth-friendly private-label products, then expands its brood to include stores catered specifically to those products, you can bet there’s something to this whole natural foods thing.
The first Publix GreenWise Market opened in Palm Beach Gardens, Fla. in September 2007, followed by a second store in Boca Raton and a third in Tampa. Born out of customer demand for less-processed foods and cleaner household products, Publix GreenWise Markets are a testament to the mainstream acceptance of items that were once considered fringe.
“People have been trying to figure out if health, natural and organic was a fad,” says Director of Media and Public Relations Maria Brouse. “Obviously, it is not.”
Born in the midst of the Great Depression, the first Publix Food Store opened in Winter Haven, Fla. under the stewardship of businessman George Jenkins—known to his associates as Mr. George—who started the still-in-tact tradition of employee ownership and profit sharing at a time when annual sales hovered around $100,000.
By 1945, there were 19 stores. A decade later, the chain had grown to 24 and, in 1956, Publix had its first million-dollar profit year. The end of the ‘80s saw total revenues from the chain’s 367 locations reach $5.4 billion and the ‘90s brought expansion to Georgia, South Carolina and Alabama. Tennessee followed and Publix passed the $16 billion sales mark in 2004. The growth has barely skipped a beat since. Retail sales in 2008 topped $23.9 billion and the family of stores now includes Publix Pix, a series of gasoline convenience stores and Crispers, a Florida restaurant chain (not to mention eight distribution centers and five manufacturing facilities).
Through it all, the backbone of the company has been pretty simple and very consistent: Be nice. Treat customers well and give them what they want. So, when Publix customers wanted healthier food, the store listened. The Publix private-label line of natural, organic and earth-friendly products were introduced in the late ‘90s to an overwhelming response.
“It really took off,” Brouse says. “We noticed that each passing year our customers were becoming more savvy. They wanted to know more about health, natural and organic products. They wanted to purchase these products more often, but they still wanted to enjoy the everyday indulgences.”
“People have been trying to figure out if health, natural and organic was a fad,” says Director of Media and Public Relations Maria Brouse. “Obviously, it is not.”
Publix GreenWise Markets responded to this desire by flipping the traditional model and offering a majority of natural items alongside a smaller selection of conventional products. “Some customers, while they’re living a healthy, natural and organic lifestyle, may still enjoy a carbonated beverage or an item from the bakery—whether it’s a doughnut or a cake, or something for a social gathering,” Brouse says. For others, she says, it may be beauty products or household items.
“We want to be that one-stop shop,” she says. “Say they are used to purchasing Bounty paper towels or Tide detergent; we don’t want them to have to go to another store to purchase something they would normally get in a routine shopping trip.”
While response has been positive for the GreenWise model, Brouse says there are no current plans for expansion. Instead, the chain is looking at opening a hybrid store in Naples, Fla. that would carry conventional and natural brands equally.
“We’ve learned from each location so far. We continue to tweak the selection of suppliers and the labels we carry,” Brouse says. “It’s about tailoring the product mix to meet the customers’ expectations. What’s interesting is that even in our traditional stores, we’re having people ask for more of a selection of health, natural and organic.”
But, much like when the first Publix store opened in the 1930s, today’s consumers also have to keep the family bottom-line in mind.
“The food industry doesn’t change. Everyone has to eat,” Brouse says. “They decide where to shop based on the perceived value. It’s about the service and the solutions we provide. Food surrounds every important event in our customers’ lives—weddings, graduations, births, christenings—we want to be a part of that.”
Originally published by Natural Foods Merchandiser