Publix Supermarkets, Inc.

All traditional brick-and-mortar retailers are struggling with how best to deal with threats from online retailers. However, the supermarket industry is also dealing with pressure from new foreign entrants like Aldi and Lidl. Perhaps nowhere is this more evident than in the southeastern United States, where Publix operates. Publix is an employee-owned supermarket chain with excellent service, high margins and strong growth in sales and profits. The company has also had some success with Internet offerings. However, is the company’s business model going to sustain it in this increasingly competitive industry, or are changes needed? This case focuses on the entrance of Publix into the Richmond Virginia market