Retail View: Publix provides blueprint for success
Retail View: Publix provides blueprint for success
By virtually all accounts, Publix Supermarkets is one of the best regional chains in the United States and is consistently listed as one of the best places to work by Forbes magazines and others who rate such things.
The company’s chief executive officer, Ed Crenshaw, told an audience at the United Fresh Produce Association convention in Chicago, June 10-12, that the first statement is the result of the second. He said it works for retailers but it will work for any company. If you have happy employers, you will have a successful company.
Crenshaw said in the highly competitive food retail game, there are three ways a company can distinguish itself: service, quality and price. “You need to be good at two (of those things) and the best at one of them. For us, it is service,” he stated.
In 1974, Crenshaw joined Florida-based Publix, which now has more than 1,075 stores in six southeastern states. He said he has seen a lot of changes in the time but the one constant has been the chain’s devotion to customer satisfaction. “We are always looking at ideas to make our stores a better place to shop and work.”
He credited Publix founder George W. Jenkins for establishing the philosophy that the company still follows today. Quoting Jenkins, Crenshaw said: “If you treat your associates right, they will treat the customers right and that will increase sales and profits.”
Publix’s top guy said the most critical piece of any company is their employees. “Every business is comprised of people who deserve to be treated with dignity and respect every day.”
Every year Publix recognizes its employees that have reached service anniversaries of five, 10 or 15 years. In a business sector with very high turnover, Crenshaw said this attention to the employees is the key to retention and success. “Publix continues to grow while others (in the retail sector) have consolidated or closed down,” he noted.
It is this executive’s contention that the care shown to employees is transferred to both their customers and their suppliers.
Of course, he added that another of the reasons that employees are happy at Publix is what he called the company’s “secret sauce.” And that is that the firm is an employee-owned company, which gives each associates a real stake in the business.
Speaking to a group of many suppliers of fresh produce, Crenshaw acknowledged the role that fruits and vegetables play in Publix’s success, stating that at his stores “produce is the star of the show.”
Publix’s customers are trending toward caring more about health and wellness and are looking for more nutritious food. They want to know where the company sources its food, are looking for more local options and want GMO-free food. He said the company does not carry genetically modified food.
Through its digital space, Crenshaw said Publix tries to give its customers the personal connections they desire with suppliers. The firm also likes to use display-ready boxes in its stores to give the customers a further connection with the farmers who supply the produce.
But Crenshaw said the best relationship builder that Publix has with its customers are the one-to-one interactions between store employees and those customers. The firm encourages those interactions and he said the retailer takes the same approach with its suppliers. Best business relationships are also those based on one-to-one interactions, he said.
Crenshaw summed up his talk by seemingly summing up his philosophy: “Do what you do to inspire others,” he said, “making a better tomorrow.”