Dive Brief:
- Publix recorded a comparable store sales increase of 11.7% for the first quarter of 2022 on a year-over-year basis, as sales for the period rose 13.5% to $13.2 billion, the Florida-based supermarket chain reported Monday.
- Earnings per share excluding the effect of fair value adjustment related to the value of equity securities came in at $1.54 per share for the quarter, up 17% compared with the same period in 2021.
- The company’s stock price rose from $13.76 to $14.91 per share, effective May 1. Publix’s stock, which the company split 5-for-1 on April 14, does not trade publicly and is available only to the company’s associates and directors.
Dive Insight:
Publix turned in a strong quarterly performance even as the industry-wide sales lift sparked by the pandemic fades and inflation increases its grip on the economy.
The company’s revenue, identical sales and earnings per share all rose during Q1 compared with the fourth quarter of 2021, indicating that Publix is still benefiting from market conditions despite rising macroeconomic headwinds.
Publix is taking aggressive steps to retain its strong position in the southeastern U.S.. The company plans to spend $1.6 billion during the remainder of the year on capital projects, including new and remodeled stores, additional warehouse space, improved information technology, Publix disclosed in a quarterly filing with the Securities and Exchange Commission.
As of March 26, Publix ran 1,296 stores in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. Publix is also planning to expand to Kentucky, announcing last year that it intends to open two stores in Louisville, the state’s largest metropolitan area, starting in the fourth quarter of 2023.
Publix enjoys a particularly strong position in its home market of Florida, but the retailer is facing a significant competitive threat in the state from Kroger. While Kroger does not operate brick-and-mortar stores in the state, the chain is developing e-commerce facilities in densely populated regions including South Florida and the cities of Jacksonville and Tampa.
Last month, Publix started offering 15-minute grocery delivery service in a portion of Miami in partnership with Instacart. The grocer plans to expand the high-speed e-commerce service to other parts of the area during the coming weeks.
Publix and Instacart are also working together to run an online convenience service, known as Publix Quick Picks. The service, available across the seven states where Publix currently has stores, offers customers a variety of items for delivery in 30 minutes.
