Publix Supermarket
My eyes were drawn to an article on Yahoo this morning that pointed at companies that never in their entire history, whether the economy was bad or worse, laid off workers and my attention moved to Publix on spot number 9 in the nation. “A strong balance sheet with no debt helped this grocery chain acquire 49 stores and hire over 1,250 people last year” said the article, adding that in its 79 years, it has never had layoffs.¬† The conclusion said: “No wonder – it’s entirely owned by employees.”
I thought – well so is the Tribune Company in Chicago, owner of amongst others – Chicago Tribune, Los Angeles Times, Hartford Courant, Orlando Sentinel, South Florida Sun-Sentinel, Baltimore Sun, which filed for bankruptcy protection in December of 2008, followed by massive lay-offs. The Tribune Company shows less than $6 billion in revenues, produced by about 21,500 employees, while Publix posted more than $24 billion with a reported employee total of 140,500.
Yes, that’s 140,500 employees and what’s more, from the 1,015 supermarkets with the name Publix on it, 730 are right here in Florida, which guestimates that about 72% of the workforce, or over 100,000 employees right here in Florida make a good living and are part owner of the company.
Tweaking my interest I expanded my research and learned to my surprise that this November alone Publix is opening almost 200,000 square foot of retail space in 4 Florida locations, following 250,000 square feet in 5 Florida locations in October? With the 45,600 square foot store that opened yesterday in Evans, Georgia, we’re talking half a million plus square feet of expansion in the middle of a recession. Now that is not only ballsy; it smells like confidence. Their management and expansion model apparently works. What’s more, they seem to have no problems securing the financial means to aggressively expand.
Besides never laying off employees since its founding in 1930, they’re also ranking very high on the list of best companies to work for; something I already had been witnessing in conversations with the four people in my family who work for the local Publix. Treating employees well means good pay and benefits – two factors that are attracting all the right workers; and all the right workers can turn a recession into a profit center with initiative and commitment.
A little more investigation established that there are quite a few food companies on Wikipedia’s list of employee owned companies, and all doing quite well in this recession. During my reprieve in Wisconsin several years ago I shopped at a supermarket called Woodman’s which was an impressive and very satisfying experience and pretty much in line with Publix here on Amelia Island.
Being in the food business is always a safe bet in a declining economy, but  expanding at the rate Publix is doing is nothing less then remarkable. They have the formula under control and are now scaling it up. Hats off.
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