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Publix Grocery Bill May Be Less

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The Publix grocery chain has started a program of deep discounts on certain staple items, starting with milk and soon expanding to other products.

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By MICHAEL SASSO

The Tampa Tribune

Published: August 9, 2008

TAMPA - Publix Super Markets has long stressed its customer service and cleanliness, but with rising food and gas costs it's now courting a lower-priced image.

The Lakeland-based grocery chain has started a program of deep discounts on certain staple items, starting with milk and soon expanding to other products, company spokeswoman Shannon Patten said.

Publix has lowered the price of a gallon of Publix-brand milk to $3.79 from its recent price of $4.69 a gallon, a drop of 19 percent.

Patten wouldn't reveal what other products the grocer plans to discount, but said Publix brand and non-store-brand products would be reduced starting Friday.

Patten said there is no timetable for the discount program, but said it would last longer than Publix's traditional weeklong sales. Aside from the deep discounts, Publix is putting more emphasis on buy-one-get-one-free promotions and its Advantage Buys discount program. Unlike some other grocers, though, the company has no plans to start a loyalty card program, Patten said.

Patten said Publix is starting the program to help customers hit by inflation.

"In today's economy, people are feeling it in their wallet when they hit the registers in grocery stores," she said.

Publix historically has not pushed a low-priced image. Its advertisements generally have featured people using Publix's products, a type of soft-sell approach called "lifestyle" advertising. Publix's ads differed from other chains that featured more hard-sell approaches, such as TV spots advertising discounts on beef.

Publix isn't alone in trying to cut prices amid a tough economy. Winn-Dixie Stores of Jacksonville rolled out aggressive promotions in recent months to win over price-conscious customers. However, the company found that its price cuts hurt the company's bottom line more than expected in its quarter ended June 25, Winn-Dixie said in a news release July 31.

Publix's profit fell 3.5 percent in its most recent quarter, a rare setback for Florida's dominant grocery company. Patten attributed the drop in profit to the downturn in the economy.

Andrew Wolf, a grocery industry analyst for investment banking firm BB&T Capital Markets, said most supermarket companies are trying to project a lower-price image these days, although most started cutting prices late in the game.

Wolf said the Kroger grocery chain, which competes against Publix in Georgia, has been aggressively stressing its low prices the longest. .

Reporter Michael Sasso can be reached at (813) 259-7865 or msasso@tampatrib.com.

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