hi my topic is publix super markets: Its strategy in the U.S Supermaket and Grocery Store Industry.

I need to know these specific areas:

Analysis of Causes External Analysis - P5F (Porters 5 Forces) top 5 driving forces and and Conclusion - DFC(driving Forces of Change) Conclusion - KSFs (Key Success Factors) Conclusion - Competition Strength Test (weak, Moderate to Strong to very Strong) Justification (+ for competition is strong, - for competition is weak) -Threat of Rivalry (strength and Justification) - Threat of substitutes (strength and Justification) - Threats of new entrants (strength and Justification) - Supplier Bargaining Power (strength and Justification) - Buyer Bargaining Power (strength and Justification) Conclusion - Industry Attractiveness (Growth and Profitability) Internal Analysis -General Strategy -GoF (goodness of Fit Test) -Company Competitive Advantage Conclusion - Financial Based on KSF (Gross Profit, Operating Profit, Operating Profit Margin, Gross Profit margin)(doing good or bad? Declining or growing? Compared to the competitors Conclusion Strategic Summary -Strategic Issues / Front Burner issues & Decision Criteria -SWOT -Conclusion

EXitist \& Consolidated Statements of Operations for Albertsons Companles, inc. Fiscal 2014-Fiscal 2018 (in millions) fe ted quater ot theal 201 Al bunched is own branded supeription delivery set: vice in 2019 , asd partnered with Glympse, a location sharing tectunologs. Gijmps enablod cussomers to get reateme statis updates for delivery and pickup anders. By the fourth cuarter 2019, Albertsons's home Adivefyervices vere wailuble in 11 or the top 15 markets across the Uhined Suates. Abettunis riled for an tho (Initial Public Cefering) in 2015 but abandoned it due to market volatility of mocery stocks. The eompary tiled again. in March of 2020 , and if successful, it would be one of the larest market debuts of the year, estimatces it 52 billion. However, stocks around the world wete Aropping sharply due to rapid spread of the corces? virus in March 2020, and the Gte of Abertson's IPO was quscicmable. H. E. Butt Grocery H. E But Gincery, commonly knuwn as H.E.B, was a Maico. HEA wos founded in 1905 by Florence Butt, Fical 2018. H. B L tad 528 billion in reycnue, an increase of 12 percent from the priof year. The coenpary was the 37th lapous setailer in the wodd is 2017 , and 129 larpot private compaty in the Uniled Staec fin 2018 , the company had mowet up so 11P lareat. The ecmpany operated as H-E-B., H.E.B Plia, Mi. Tienda, Joe V's Smart Shop, and Central Market. In 2019, H-K,-B was listed by Forbes as number 11 - America's lareest private companies, number 23 - Best Fmployers for New Grads, number 32 - Best Empioyer for Women, and number 32 Ametica's Best Employes by State, H.E. B tiod for fint in customer sathefaction in the 2019-20 survey by the American Coesumet Satistaction Index ranking Funcial information was scirce. Annual salcs. were estimated to be $28 billion in fiscal 2018 (endech Oetober 31.2018 ), and $23,12 billiog in fiscal 2017 , These revenue amounts exclude results from Mecican opetations, In fiscal 2017, Mexican operations feect. sted ales of $1.48 bition. H.E.B dectoped in fimily of pelvate brandh. begianing in 1991, inclading IHEA. H.E-g Select He.8 Buddy, Central Marke, HEB Kinclea \& Exhitit Q Consolidated Statements of Operations for Whale Foods Markat, inc: 2015-2017 (s in millions) Profiability in the retail grocery indastry had 7 spreading thoough the Uniled States, onethird of been faliog twe to decreasing productivity, hicher (f) phoppers reported putchasine groceries oaline dercosts asd sipnificantly increnced price competinion. Accoefint to a Janary 2019 McKiascy \& Coettpany report, pocers could experience a $200 billion to $700 hilioe in revenue shift 10 oaline, discount, and poegrocery ctannels. The fiet revult was that the indutry was raking more than $1 trillion in carnine (befort interest and taxes), as well as the loss woy tal of traditional grocery retailets. The COViD 19 pandemie in early 2020 injected aditional ipend inta the supermarket ind astry theyr. In 2019, about onethird of a sample of Woppers isported that they bought "almost fone" of Their eroceries online, while if percent bought "Wese, ased 12 petcen bought "almost all" obline. On Marth 13, 2020, with the COVID-19 pandemic. int the friot wet, with 41 peroent being firmteime anline ztocery shopoen. A resilt of the CONID-19 cras was that noet Weftarants bere closod, resultine in In larpe swing in 5004 gles golis to supermarkets. This presenied many proviously teluctant celine brocery shoppers with the oxperionse of eay, coavenient valine shopping. which would likrly actelerate the strue tural charge in wopping with an mercase in its ontine grocery sepment. Although the tange neveboe e-commerce deficieseics A lootring challenfe for cocommerce sales ENDNOTES Delivers, ant incwarive, ondentand defluery service the abulicy to ship grocetion and other therchasdise to Meifer, Inc. Mefier. Inc was started in 1925 as a supermarket chain in Graind Rapids, Mistripat by Hetdrik Meuet The company eperates over 200 Afores in Miclien. Otioy Indiana, llinces and Kentucky, employ over 80,000 , is the 19t laretst-frivate eompiny world in 2017 . Mejuer's esaimated 2049 reverue was $13,8 billion. Mejer is credited for poocerting the modern supercenter eoncepe in iso 2 , When is openod in which custopters could find everythirg thep cooded in only one trip to the store. Each Mejer upperetet ucts the stores are open 24 hours dily. 364 dass a year. The company his errated abour 100 o o privane. label beands. a Gamily business, treateq eacte other with diznity and tion (Metief is comentired os korping its conenpetitise spirit strong and staying nimble and ficoble to win in the marietplaceh. The matifstation of Meier's value of competaios is evidenced in Citand Rajeits. Michipen, whete the cotrpany to reacting to the chal center, boul is reparpond fockabe of a wupercencer. The eenter will employ propvictary haftware and software that wiff emable Mefier tetall stores to pict and asscable obline onders fo mece their cutomen: expectations and make online erecery pupstislit. Whole Foods I natirial foods sote nuabof SaferWay in Micis. Aurne 2017 for 5134 tallice. Whele Food Meriat die tialed Siater. Reime cusumers could mocive their enster pookt oe selceted irems nod Whole Foods chirped the is onine grocery services ad the callitites of ai Amsion resuperial poetrol. Pabex Soper Markets in Mik2020. As the inaty bio ecunactor. These values wore adhered to exco dey af Pubtis There valucs were: ing relationship making connetions, workitg col. laboratively, learnine and mentorine othen. Deteg a pood comenaity partner was roquitite for ofpat. izational success is Jenkins" mind and he Notrsed Sonsting time. falest and mosicy to the cities in Which Publix eperated. Publis's ftuwth recuired a aged his people to perpare themselves for the ousstanty emerging opportunities in the crzalizelon Having experieted working for a codpany utiere his thoughts and ideas wrre noe vatued, Jenilins vowed to make Public a place where individuals were respected, conmunication was open, everyone had a voice, and opinions were volued. Further, the of the company, becalas he wanted firi essomen. and employees to koow that he caned aboet ther: Publix Super Maricets' Financial Situation and net poift slowes-CAGR of itl peneQ 29 peterit is 2019 istonifently ender cin t: EXHIBIT 1 Solected Financial Data for Publix Super Markets, Inc., 2015-2019 (s in thousands) C.282 Stock Market Performance Publix stock was not tridted publicly in was held only by curfent and formet employecs. Because of the lack of active tradiag, there was no iraditional trading- or market-based daily prise wrailable, A troup of ibdependent financial analysts determined the Publix stock price based on cocsparivon of tinancial performance in a "peer groap" of other. supermarket chains. Cophequently. sook price switgs in other grocers' sock price could affect Publix's share price. Exhibit 4 produces Publat stock, compared to the SAP 500 , and its peer etoot of supermarkets Supermarket and Grocery Stores Industry The U.S. supermarket and grocery stotes industry hat (powy) durine the five sears 201419, primarly doe the strone national economos producing terenus of XHIarT 4 Comparison of Five-Year Cumulative Return Based on Fiscal Year End Price for Publix Shares, 2014-2019 Ss55 billow in 2019,7 , 9 percent increake oncr 2018 Antual rovente growth, 201520 had boen 1.4 percent. and revenoe was forecios 10 top $67 billion in 2020 . wher indusy complisyent of 2,772896 Indistry Margins. The marios vary amper ecry alstes eargins. ipproumalely one percenc, are the lowes in the economy, findactry cornolidacion had revired from the low mareins: in a low marpit sas revion, economies of scale could peovilte eftr ciency and centralination. afin coonomic rewards. Cocsequenthy, for several decades, the grocery industry had been is the process of eotivolidation. New slore formats pressed margins eveat lowet as competition becarte more imense. The precent aver. apc evocery store was a lafee supertartet with an metree of phout 45,000 squase fect asd annal tev. etrac of about 514 millioh a yeat, or abous $00 pet iquare foos of sales as the industry ariage. New grocery formats since the 1990s changed the industry. and specialty chains like Whole Foods were earting margins of about 3.2 percent and highet, far smater that the indestry avefaee. The molesale clubs. for: mat alwo undercut the licper procery stores. panting presure on the struseling industry. Oreatic and Privale Firads. Duritag the five yours ai per capia dingosable inceree increased. Which- pere efs contifusd purchanind private-label, of shore eric food parclines rebliced revenoe proseth, but could be prodsecd et less cost flan national breds. Nos only eocld private Frand Fods ill imentory voids, bot they who boosied the botom line. Froft margins on thirdpartytianded foods were about ore peroent to two petcent, while gposs martins on privisetabel goods eodA teach between is pereent and 30 perocel. When privale brands wate first introduced, retailers" ideas of peivate labels were an aftertbouph. The word "Generic" was effer wed interchangeably whin privale berand, and packaging. woualy black and white, was not lighly desirable. and quality was also thot a priceity? The Food Marketing Lnditue's zoty pod repoets: that 46 percent of peivatelabel brands are very influ. entiar in thes decisioe of which food sctailer bo shop. an increave of 15 peroent from the yeats pervioun. The data reflects a vimilar resulf focm Coesight Reveach posted eartier in 2019 , that usposind miore cuvoriser furfillment centen inatily locates in senOtrio. A Wiscoeval fulfulment was added in 2019 Kroper imcoled heavly in pricief brand Fods. Kinger' prome bennds, known as Oor Heands Gover. Private Selection, Simple. Trath Big K. Kroget's sales in 2018 . In 2019. Krober prodoced about 43 percent of Our Heathd grocery items in Kroget ewred food peodoction plants. Kroger also debuted a Greenaise Market ehaln of healtho-Ihing soocs dexgened to be a place for cuslomers to find prodacts that will support thel evolving lifestyles. coflees, loctly crafied betrk, vinet, and strocelties made intodse, keal and ofganic peodice, bodr cait Costco Wholesale Corporation with fiscal 2019 sales of $152,7 billion-see lahibe ? EXHIBIT 7 Consolidated Statements of Income for Costco Wholesale Corporation, Fiscal 2017 -Fiscal 2019 (amounts in millions, except per share data) XHIarT 4 Comparison of Five-Year Cumulative Return Based on Fiscal Year End Price for Publix Shares, 2014-2019 Ss55 billow in 2019,7 , 9 percent increake oncr 2018 Antual rovente growth, 201520 had boen 1.4 percent. and revenoe was forecios 10 top $67 billion in 2020 . wher indusy complisyent of 2,772896 Indistry Margins. The marios vary amper ecry alstes eargins. ipproumalely one percenc, are the lowes in the economy, findactry cornolidacion had revired from the low mareins: in a low marpit sas revion, economies of scale could peovilte eftr ciency and centralination. afin coonomic rewards. Cocsequenthy, for several decades, the grocery industry had been is the process of eotivolidation. New slore formats pressed margins eveat lowet as competition becarte more imense. The precent aver. apc evocery store was a lafee supertartet with an metree of phout 45,000 squase fect asd annal tev. etrac of about 514 millioh a yeat, or abous $00 pet iquare foos of sales as the industry ariage. New grocery formats since the 1990s changed the industry. and specialty chains like Whole Foods were earting margins of about 3.2 percent and highet, far smater that the indestry avefaee. The molesale clubs. for: mat alwo undercut the licper procery stores. panting presure on the struseling industry. Oreatic and Privale Firads. Duritag the five yours ai per capia dingosable inceree increased. Which- pere efs contifusd purchanind private-label, of shore eric food parclines rebliced revenoe proseth, but could be prodsecd et less cost flan national breds. Nos only eocld private Frand Fods ill imentory voids, bot they who boosied the botom line. Froft margins on thirdpartytianded foods were about ore peroent to two petcent, while gposs martins on privisetabel goods eodA teach between is pereent and 30 perocel. When privale brands wate first introduced, retailers" ideas of peivate labels were an aftertbouph. The word "Generic" was effer wed interchangeably whin privale berand, and packaging. woualy black and white, was not lighly desirable. and quality was also thot a priceity? The Food Marketing Lnditue's zoty pod repoets: that 46 percent of peivatelabel brands are very influ. entiar in thes decisioe of which food sctailer bo shop. an increave of 15 peroent from the yeats pervioun. The data reflects a vimilar resulf focm Coesight Reveach posted eartier in 2019 , that usposind miore marble, wacko and glass, and inclufed innovatiom eve doon, and berrarmo floors at a time when these ibems were consideted laxurles ax fouth in compet. ine grocery alores. He acquired a warebcose and 19 NII American sotes frech the Lakeland Grocery Compary int 1945 and betan replacing the small sores with larger supermarbets. He ocetirued tis aperessive expansion and berought the Publix fonmd to customers theraphout Horida. The Publix Culture Froan the day he openct his finl grocesy suort, Je-kim was focused on excilemt customer reatment. He thoupht that friendly custume service ased foyal trestment wete crucial clestents in confecting with cur tomets and foemige tastan relationshipe. He believed 2. corvenicelt, but. lean, shopping exrifonment. As Publix, the foundation of its firfetaskcustomer iver vioe was learmine all possible alout the busifiess, and to make the shoppine experience pleasanble. Puldix conployees (called amoctates) vere taupht that providing the highest lesel of service and treat. ing the eustomers tilk royaly, exiendod beyond the frocery aisles, Customers sbould have eacellent experiences in every interaction with the compary. Poblix believed that its associates, a ho contimued so embrace the philmophies set cut by Jenkins. were what separated Pablix from other major stocery refallers. The Company repulany scepgmized and rewarded its associates for their hard work, dedicamany reasons, inclodine - Going "above and begond." Assuciater who had Going "abone and begond: Assoctater who had been a pole model in embeacing the Puhlix cukbeen a foir model in emberacins the Puhlik curreceive a fire sub coupon and a petsonaliued note from their manaper. - Being dodicaled to the Compony Ascocianes received a pit and were invised to a dinner rocogoliting cach flve years of service. Publix valued its sssociates and rewanded those who made a difference in the lives of others. firs' ied to Pobla's beginniar in 19.80 . Recognition of Pyblix Super Markets - Penver thes Bir Coonanies ta Work For - Frawes Best Woriplaces for Parreals - Indecd's Top Whited Workplaces fior Veieraes - Forener 100 Hedt Companies so Work for in America for 22 eosecutise years - Fertuse i Best Wockplaces for Diversiry - Fompera flet Worlplaces for Women - Fomane's lfeet Workplaces for Milleneials - Perisare Best Woniplaces for Retal secutive years . Isdced's Top-Rased Workplaces - Market Focs Americs Fanorade Cirscery Chains Publix's Mission, Commitment. Guarantee, and Key Values Publix's mission was to be me premiler quality food mitaler is ibe wond." To achieve that mission, the campasy focused on its customers, efriciency. employees. stockholders, and commanities Over the yearn, Publix had an unwavering coenmiment to beiro: - Pasionately focused on costomer value. - Inolerasi of wavte. - Dodicated to the dienity, value, and cmplayment secarity of cur associates. - Devoced to the highest stundants of stewardship for our tockholders. and - Involved as repposible citizens in oar communities. The compary gave its cusioeners the garansec that "We will never knowindo disappoins you. If for any teason your purchase docs net give you complete atisfaction, the full purchase price will be checrfully refunded immediately upon request," During the early years, Jenkins reflected on what he had learned in this beviness life befoce Publix and developed a set of values upon which be trailt the company. EXitist \& Consolidated Statements of Operations for Albertsons Companles, inc. Fiscal 2014-Fiscal 2018 (in millions) fe ted quater ot theal 201 Al bunched is own branded supeription delivery set: vice in 2019 , asd partnered with Glympse, a location sharing tectunologs. Gijmps enablod cussomers to get reateme statis updates for delivery and pickup anders. By the fourth cuarter 2019, Albertsons's home Adivefyervices vere wailuble in 11 or the top 15 markets across the Uhined Suates. Abettunis riled for an tho (Initial Public Cefering) in 2015 but abandoned it due to market volatility of mocery stocks. The eompary tiled again. in March of 2020 , and if successful, it would be one of the larest market debuts of the year, estimatces it 52 billion. However, stocks around the world wete Aropping sharply due to rapid spread of the corces? virus in March 2020, and the Gte of Abertson's IPO was quscicmable. H. E. Butt Grocery H. E But Gincery, commonly knuwn as H.E.B, was a Maico. HEA wos founded in 1905 by Florence Butt, Fical 2018. H. B L tad 528 billion in reycnue, an increase of 12 percent from the priof year. The coenpary was the 37th lapous setailer in the wodd is 2017 , and 129 larpot private compaty in the Uniled Staec fin 2018 , the company had mowet up so 11P lareat. The ecmpany operated as H-E-B., H.E.B Plia, Mi. Tienda, Joe V's Smart Shop, and Central Market. In 2019, H-K,-B was listed by Forbes as number 11 - America's lareest private companies, number 23 - Best Fmployers for New Grads, number 32 - Best Empioyer for Women, and number 32 Ametica's Best Employes by State, H.E. B tiod for fint in customer sathefaction in the 2019-20 survey by the American Coesumet Satistaction Index ranking Funcial information was scirce. Annual salcs. were estimated to be $28 billion in fiscal 2018 (endech Oetober 31.2018 ), and $23,12 billiog in fiscal 2017 , These revenue amounts exclude results from Mecican opetations, In fiscal 2017, Mexican operations feect. sted ales of $1.48 bition. H.E.B dectoped in fimily of pelvate brandh. begianing in 1991, inclading IHEA. H.E-g Select He.8 Buddy, Central Marke, HEB Kinclea \& EXHI8IT 2 Consolidated Statement of Earnings for Publix Super Markets, Inc. 2017-2019 (in thousands, except per share ameuntil EXHIBIT 3 Consolidated Balance Sheets for Publix Super Markets, Ine, 2018-2019 ( $ in thousands) Definition of Problem Analysis of Causes - Exlemal Analysis P5F Concusion (8) OFC Conclusion (8) KSFS (8) Comp Strenglh Test (8) Industry Attractiveness (8) - Intemal Analysis Gen Strategy (5) GOE(10) Comp Adv (10) Fin Conclusion (5) Sirategic Summary FBIs \& DCs (8) SWOT (12) Conclusion (5) Loglo and overall flow TOTAL wars in Worth America had becas eely rmo pereent. ycmin 8.4 peceent in Sosth America and Easiern Euroge, 6.2 peroent in Asla, and 9.8 perocnt in Africa. As labor eosts and commolio prices iocreased beturen 2012 ind 2017, tradisional grocers had not heen able to incteise their prices to compensale. bectase of inteste competifice from lowet priced formats wach as doltar nores asd disoount chains Profile of Select Rlvals in the U.S. Supermarket industry Kroger Co Costeo Wholesale Cocpocation Abertsots. H.E. Burt Grocery Co. Melier. Inc., and Whole Foods were Publia's close coupetitors fert top US mupermarket-sec Edhibit 5 : A. June 2018 study of finctite elocery sote ctains showed that Publis Supermarkets tad the second hiphest composite customer boyaly in the stocery/supermarket industry, sooring To percemt. versus the leader, Webrans. (a small, privately beld New Enpland grocery chain) ahich was 77 percent Nimoce Publix's os her close ocmpetioes, HE-B jeas 69 perectat, Costeo yas 65 persent, and Whole Foods 60 pereent. Kroger, Nleertsuns, and Mejer dia teie make the live, Publis componed quite fanarably so the top nuper number two with Whole Foods for specialry depart? meth service. Deipite these high rankings. Publix plased eifati for pood sales and peomotions of the 22 top erocery chales surveped, and 18p for alue for the money. The Kroger Co,M The wodds lareest retall pooerylupermatket chain wis Kroger Co. with fiseal 2019 kdes of $121.162 millica. Kroser was the thied Walmart Svoces, Ine, and Cosceo Wholecale Corp. Kroger coned 18 chains of supermarkets includ ine King Soopers; Ralphis. Smith's. City Market and ingact wees (eg., FoodALess), maltidepartmeent shores (e.5. Fred Meyer, Kroper Marbeplace), as well as jewelly and specilty retallers, Kroger's statement of insome is poofuced io Fxhihis 6 Kroger launched a threeyear "Restock Kroner" plan, beginnins in 2018 , that was intended to create sareholder valos by pursing its vision of serving America by food lispiration and aplift. The compary reported that it delivered over 51 billioe in sinings in 2018 through ptocess impronements and cost EXHIBIT 5 Leading U.S. Supermarket and Grocery Store Chains, 2017 in nusons uss + enthrinted EXHI8IT 2 Consolidated Statement of Earnings for Publix Super Markets, Inc. 2017-2019 (in thousands, except per share ameuntil EXHIBIT 3 Consolidated Balance Sheets for Publix Super Markets, Ine, 2018-2019 ( $ in thousands) Definition of Problem Analysis of Causes - Exlemal Analysis P5F Concusion (8) OFC Conclusion (8) KSFS (8) Comp Strenglh Test (8) Industry Attractiveness (8) - Intemal Analysis Gen Strategy (5) GOE(10) Comp Adv (10) Fin Conclusion (5) Sirategic Summary FBIs \& DCs (8) SWOT (12) Conclusion (5) Loglo and overall flow TOTAL Exhitit Q Consolidated Statements of Operations for Whale Foods Markat, inc: 2015-2017 (s in millions) Profiability in the retail grocery indastry had 7 spreading thoough the Uniled States, onethird of been faliog twe to decreasing productivity, hicher (f) phoppers reported putchasine groceries oaline dercosts asd sipnificantly increnced price competinion. Accoefint to a Janary 2019 McKiascy \& Coettpany report, pocers could experience a $200 billion to $700 hilioe in revenue shift 10 oaline, discount, and poegrocery ctannels. The fiet revult was that the indutry was raking more than $1 trillion in carnine (befort interest and taxes), as well as the loss woy tal of traditional grocery retailets. The COViD 19 pandemie in early 2020 injected aditional ipend inta the supermarket ind astry theyr. In 2019, about onethird of a sample of Woppers isported that they bought "almost fone" of Their eroceries online, while if percent bought "Wese, ased 12 petcen bought "almost all" obline. On Marth 13, 2020, with the COVID-19 pandemic. int the friot wet, with 41 peroent being firmteime anline ztocery shopoen. A resilt of the CONID-19 cras was that noet Weftarants bere closod, resultine in In larpe swing in 5004 gles golis to supermarkets. This presenied many proviously teluctant celine brocery shoppers with the oxperionse of eay, coavenient valine shopping. which would likrly actelerate the strue tural charge in wopping with an mercase in its ontine grocery sepment. Although the tange neveboe e-commerce deficieseics A lootring challenfe for cocommerce sales ENDNOTES thas haif ex US shoppero sisit a particular fetailer io pucthase a peivatelabel rood. Some procets uurned their privatelasel brands inio lines that art wete as well respected as corngarable option from pockased food-ocerganics like Kraft Heins or Cieneral Mitis if hos mose su. Data from the Food Marketing Instinste (FMI) and market revearch firm IRI indicaled thal almoek halr of all eonsumers specifically sotk out a ferinablabel product. "Food retailern should be very Fiened they their brands are becoming bigect factocn in bow contamers shop. This eives retalkers the oppor. timity to further Arive logaty and trips?', the FMT/TR! stady cormmetaled.' The lecteast in abtepance and importance of private beasts offerce the superenariet. industry an opportunicy that was far more tienificant than a few years previoes, as the industry mowed inlo a ena in which house brands wete not just the cheap aliernatives, rather the private brands were increasingly the consumer's intended purclase. Indestry Challenges. Despite the induary/s reverue frosith, the industry foced significans ctallenges. Coessamer's labis had been chargifip-eonsumer ctpected low prices and the ability to buy aimost any thing at anytitye, ange here. The latgest U.S. demographic group miflennials, were the fint generitioe to be less wealthy thair their partets: they wanted deals and discountsy in addirion to bealthy food, socially and environmentally resposesisle companies. knoweing where their food came from and bow it was made. They were also atiracted to online shopping. Acocording to BloomReach, a digital shopping plat. foem, 41 percent of retailers lived improving online saik capabilities as the number one priority in 20192. The prealest challenge facing the supermariket? and Grocery Stores industry appeared to be the increase in online grocery shopping, which was between three and four perioter of total industry revenae in 2019. According to maty leaders in the grocery industry, that mumber worild rapidb increase to oner 20 percent, and the carrent industry leaders. Walmart, Broger. Alberiscetsy (incloding Safeway and others), Abold Dellicrersiop and Shop, Gian Food, Peapod and oshers), and Public were not pres parcd to stioy on top in online shopping. A signiricant problem that ficed the industry as anline shoppine ve" increased, was the decline in brick and mortar store peofitability when 20 percecit of customers no longer visited the stores, and the consequent dectine in the value of supermarket real estate. In addition to developing higls efficiency grocery order fortiment store at customen walk the aides and mult ir polse purchases, motivale in tome furt in the atractive puckigine desiened by the product manufactertn. A4 the numiber of traditiontat grocery cemiamen visitins the stores decreascs, consumer product companics will fase preisure to develop new akills to mastrate the grocery consureen. The tapid ind increasing emergence of new secter hat been suecessful. due parilally to traspatres pri ciet. enabled by their online environment. To comp pele, troditional grocen were forted to loep their grocen puaneered the ase of artificial intelligenor, advanced malytick, and robotick fir mne quickly and aferessivelo than trikitional srocen. Amuron's wholie, for crample, has a pooducl-tecommendrann scarch engine, over 100000 nobots movite pellets of goods through its wackhouses, and innovations focced to cateh up: Grocesy stores were in a frecarious position as they uttemptod to reeet the minienanial' expectations ucd to have significant beping power and remained a vithl ceergonent of the industry's customet base. Boomers valued instore customer service, they wete concerned with bealith and secliness, were foceptive to new products, and many were comfortahie with technolog. AII detuographic groups presented a huge chullenge to the indastry with their decreasing incls nation to cook. In the Unined States, about Fel percent of rillentials reported rarely cooking at home, and foodservice revenue excecded foochathome sales. Industry Reaction. Tratitional groecrs reacted very slowiy to the changing consumer trebds, which pro vidod entre for cther types of retallen. Convenience? phores, discoumters, and club stoces began to efrectly compete with trasitional relailes food service bosinetses seized, the lunch and diniler demand. Discounters wert particularty azereskive, offeting a limited variety, and providing great value on alt stems, whist provided higher earnings, than supermarkets. The discounter' low prices reduced the stetor's ovecall revenue by about four pereent. These values wore adhered to exco dey af Pubtis There valucs were: ing relationship making connetions, workitg col. laboratively, learnine and mentorine othen. Deteg a pood comenaity partner was roquitite for ofpat. izational success is Jenkins" mind and he Notrsed Sonsting time. falest and mosicy to the cities in Which Publix eperated. Publis's ftuwth recuired a aged his people to perpare themselves for the ousstanty emerging opportunities in the crzalizelon Having experieted working for a codpany utiere his thoughts and ideas wrre noe vatued, Jenilins vowed to make Public a place where individuals were respected, conmunication was open, everyone had a voice, and opinions were volued. Further, the of the company, becalas he wanted firi essomen. and employees to koow that he caned aboet ther: Publix Super Maricets' Financial Situation and net poift slowes-CAGR of itl peneQ 29 peterit is 2019 istonifently ender cin t: EXHIBIT 1 Solected Financial Data for Publix Super Markets, Inc., 2015-2019 (s in thousands) c.tes EXHiBir \& Consolidated Statements of Operations for The Krogor Ca2 Fiscal 2016 -Fiscal 2018 (in millions, except per share controls and invesed in the future. One part of the Restock Kroter plan was an ateressive more towand omnichrnnel retaiting the Compary befieved thas its customets did not ditingmith berweth online and instore parchase ciperiences, bet rather socght the of problemi. Kroper attempicd to expand its capo. bilities and be avilable, relevint and acocessible to its cutiomers in both the phosical and degital shopping environmenes. The Company had becn workins of lecreas ito its digual platiorm for several years and showed a 58 peroent growth in dieital sales ia 2018 , and a 21 pereent increase in the third yarter of 2059 . It was intepating its trisicical brick and mortar busi. ness with its espanding dietal sales platorm, with the intencise of serveg ifs custames anyouine. anytinte and anywbere. By Decomber Wols, arocery. pelup or dethery was avaliable to 91 percent of Kroger houscholds in December 2019 , the contrang tions covering is petcent of Kruget housebilds. Tharket. The Coapafo merged with an celive med place in online meal kit companies, Shorty ate toe merest, Hoene Chef lanthed the firnt inatort med kit fine, and at the end of 2018 , Sey were in 700 Kroper locations and expandipie in Febriary 2015 Kroper antounced that Home Chat retail mat is wonld be added to an additional 500 Kroger dutr retalkers, which ved whranced nobocics and tigh? efficient autostated warebouses, This partentip ecummerce shopping to its custamers. Cusatip? had fresher food. dectivered fasser from Ocadis marble, wacko and glass, and inclufed innovatiom eve doon, and berrarmo floors at a time when these ibems were consideted laxurles ax fouth in compet. ine grocery alores. He acquired a warebcose and 19 NII American sotes frech the Lakeland Grocery Compary int 1945 and betan replacing the small sores with larger supermarbets. He ocetirued tis aperessive expansion and berought the Publix fonmd to customers theraphout Horida. The Publix Culture Froan the day he openct his finl grocesy suort, Je-kim was focused on excilemt customer reatment. He thoupht that friendly custume service ased foyal trestment wete crucial clestents in confecting with cur tomets and foemige tastan relationshipe. He believed 2. corvenicelt, but. lean, shopping exrifonment. As Publix, the foundation of its firfetaskcustomer iver vioe was learmine all possible alout the busifiess, and to make the shoppine experience pleasanble. Puldix conployees (called amoctates) vere taupht that providing the highest lesel of service and treat. ing the eustomers tilk royaly, exiendod beyond the frocery aisles, Customers sbould have eacellent experiences in every interaction with the compary. Poblix believed that its associates, a ho contimued so embrace the philmophies set cut by Jenkins. were what separated Pablix from other major stocery refallers. The Company repulany scepgmized and rewarded its associates for their hard work, dedicamany reasons, inclodine - Going "above and begond." Assuciater who had Going "abone and begond: Assoctater who had been a pole model in embeacing the Puhlix cukbeen a foir model in emberacins the Puhlik curreceive a fire sub coupon and a petsonaliued note from their manaper. - Being dodicaled to the Compony Ascocianes received a pit and were invised to a dinner rocogoliting cach flve years of service. Publix valued its sssociates and rewanded those who made a difference in the lives of others. firs' ied to Pobla's beginniar in 19.80 . Recognition of Pyblix Super Markets - Penver thes Bir Coonanies ta Work For - Frawes Best Woriplaces for Parreals - Indecd's Top Whited Workplaces fior Veieraes - Forener 100 Hedt Companies so Work for in America for 22 eosecutise years - Fertuse i Best Wockplaces for Diversiry - Fompera flet Worlplaces for Women - Fomane's lfeet Workplaces for Milleneials - Perisare Best Woniplaces for Retal secutive years . Isdced's Top-Rased Workplaces - Market Focs Americs Fanorade Cirscery Chains Publix's Mission, Commitment. Guarantee, and Key Values Publix's mission was to be me premiler quality food mitaler is ibe wond." To achieve that mission, the campasy focused on its customers, efriciency. employees. stockholders, and commanities Over the yearn, Publix had an unwavering coenmiment to beiro: - Pasionately focused on costomer value. - Inolerasi of wavte. - Dodicated to the dienity, value, and cmplayment secarity of cur associates. - Devoced to the highest stundants of stewardship for our tockholders. and - Involved as repposible citizens in oar communities. The compary gave its cusioeners the garansec that "We will never knowindo disappoins you. If for any teason your purchase docs net give you complete atisfaction, the full purchase price will be checrfully refunded immediately upon request," During the early years, Jenkins reflected on what he had learned in this beviness life befoce Publix and developed a set of values upon which be trailt the company. thas haif ex US shoppero sisit a particular fetailer io pucthase a peivatelabel rood. Some procets uurned their privatelasel brands inio lines that art wete as well respected as corngarable option from pockased food-ocerganics like Kraft Heins or Cieneral Mitis if hos mose su. Data from the Food Marketing Instinste (FMI) and market revearch firm IRI indicaled thal almoek halr of all eonsumers specifically sotk out a ferinablabel product. "Food retailern should be very Fiened they their brands are becoming bigect factocn in bow contamers shop. This eives retalkers the oppor. timity to further Arive logaty and trips?', the FMT/TR! stady cormmetaled.' The lecteast in abtepance and importance of private beasts offerce the superenariet. industry an opportunicy that was far more tienificant than a few years previoes, as the industry mowed inlo a ena in which house brands wete not just the cheap aliernatives, rather the private brands were increasingly the consumer's intended purclase. Indestry Challenges. Despite the induary/s reverue frosith, the industry foced significans ctallenges. Coessamer's labis had been chargifip-eonsumer ctpected low prices and the ability to buy aimost any thing at anytitye, ange here. The latgest U.S. demographic group miflennials, were the fint generitioe to be less wealthy thair their partets: they wanted deals and discountsy in addirion to bealthy food, socially and environmentally resposesisle companies. knoweing where their food came from and bow it was made. They were also atiracted to online shopping. Acocording to BloomReach, a digital shopping plat. foem, 41 percent of retailers lived improving online saik capabilities as the number one priority in 20192. The prealest challenge facing the supermariket? and Grocery Stores industry appeared to be the increase in online grocery shopping, which was between three and four perioter of total industry revenae in 2019. According to maty leaders in the grocery industry, that mumber worild rapidb increase to oner 20 percent, and the carrent industry leaders. Walmart, Broger. Alberiscetsy (incloding Safeway and others), Abold Dellicrersiop and Shop, Gian Food, Peapod and oshers), and Public were not pres parcd to stioy on top in online shopping. A signiricant problem that ficed the industry as anline shoppine ve" increased, was the decline in brick and mortar store peofitability when 20 percecit of customers no longer visited the stores, and the consequent dectine in the value of supermarket real estate. In addition to developing higls efficiency grocery order fortiment store at customen walk the aides and mult ir polse purchases, motivale in tome furt in the atractive puckigine desiened by the product manufactertn. A4 the numiber of traditiontat grocery cemiamen visitins the stores decreascs, consumer product companics will fase preisure to develop new akills to mastrate the grocery consureen. The tapid ind increasing emergence of new secter hat been suecessful. due parilally to traspatres pri ciet. enabled by their online environment. To comp pele, troditional grocen were forted to loep their grocen puaneered the ase of artificial intelligenor, advanced malytick, and robotick fir mne quickly and aferessivelo than trikitional srocen. Amuron's wholie, for crample, has a pooducl-tecommendrann scarch engine, over 100000 nobots movite pellets of goods through its wackhouses, and innovations focced to cateh up: Grocesy stores were in a frecarious position as they uttemptod to reeet the minienanial' expectations ucd to have significant beping power and remained a vithl ceergonent of the industry's customet base. Boomers valued instore customer service, they wete concerned with bealith and secliness, were foceptive to new products, and many were comfortahie with technolog. AII detuographic groups presented a huge chullenge to the indastry with their decreasing incls nation to cook. In the Unined States, about Fel percent of rillentials reported rarely cooking at home, and foodservice revenue excecded foochathome sales. Industry Reaction. Tratitional groecrs reacted very slowiy to the changing consumer trebds, which pro vidod entre for cther types of retallen. Convenience? phores, discoumters, and club stoces began to efrectly compete with trasitional relailes food service bosinetses seized, the lunch and diniler demand. Discounters wert particularty azereskive, offeting a limited variety, and providing great value on alt stems, whist provided higher earnings, than supermarkets. The discounter' low prices reduced the stetor's ovecall revenue by about four pereent. Publix Super Markets: Its Strategy in the U.S. Supermarket and Grocery Store Industry Gregory L. Prescott University or West Horida David L. Turnipseed University of South Alabami Firty linte the decade of be 2020s, Kevin Murpliy mected back over his two years health, and natural oeganic foods. eifivt force that Murply thought I as president of Publix seper Markets, Ins. x ing significeint and lesting industry established theng before Murphy's presdeticy, and eou purablic sore siles sontinued lo fincrease, despite the chain's expunsion of the number of stocts. Rublis con: linacd to enjoy cuedlent publeicy and a great corpor: afte imane, bot internally and enternally; ix had bectos of voluncary turnover rate was 5 pervent, versis the indistry averave of 65 pertreh. The company was the lareest empinyecowned ecelipary in the United Sutes and had nener laid off an emplope in is s\%year history. Athouet froed 2019 hid shoun set wales of a thenrd $3.81 billion dan increace of $.6 petcets over fiscal 2018), and set curnirus of over $3 belion or 7.9 percect of silles, Mr. Murphy was concemed thout the future. The yocery industry appeaged to be teos. inf sapidly from the traditional inpencon shoppine experience ia which the shogper visted a finceite grom cery and pervonally chose the week's grocery iltems to f ecoumeter with home delivery, or ehone appordered means for ahoppers to seloct their eroeery ifems from an app an their phones, and delivery and logitics. in prosemert enabled coick delivery of the grocety bickes so the shopoers' doot. Mr. Morply believed that Amanot's purchase or Whole Foods mas a Fifely catalys to canse faster than normal industry charge in ecomp. metce grocery sales ind delivery trohing lifestyes at boose, and as increased focus of matainability. ind remained a major kcy lo success, a fad concripod as a practical means of k Marphy was concetned that in the sepermarket industry was of sule to cause a major disrupsion in trajectory if the company did not ac the drivine sorces in the industry. stay aloead of the industrys path. accueately assess the supermarket Rublix at its fortront: History of Publix Super Mo The histery of Publix began with its Jenkins beginning his retail career if eral wore in Harris, Georgia. In 1925 that Florida's real estate boom offe tunities, and he thoved to Tampe thin working in the real estate look a job as a stock slerk in a Pig After two montlis, he was promot aber, and a short lime later, was tran Heren, Florida, to manage the cha Jenkins held the mankement po Hinets from 1926 to 1930. In 1930 Piagly Whesty and opened bis own Wieter Haren and opened a second c.tes EXHiBir \& Consolidated Statements of Operations for The Krogor Ca2 Fiscal 2016 -Fiscal 2018 (in millions, except per share controls and invesed in the future. One part of the Restock Kroter plan was an ateressive more towand omnichrnnel retaiting the Compary befieved thas its customets did not ditingmith berweth online and instore parchase ciperiences, bet rather socght the of problemi. Kroper attempicd to expand its capo. bilities and be avilable, relevint and acocessible to its cutiomers in both the phosical and degital shopping environmenes. The Company had becn workins of lecreas ito its digual platiorm for several years and showed a 58 peroent growth in dieital sales ia 2018 , and a 21 pereent increase in the third yarter of 2059 . It was intepating its trisicical brick and mortar busi. ness with its espanding dietal sales platorm, with the intencise of serveg ifs custames anyouine. anytinte and anywbere. By Decomber Wols, arocery. pelup or dethery was avaliable to 91 percent of Kroger houscholds in December 2019 , the contrang tions covering is petcent of Kruget housebilds. Tharket. The Coapafo merged with an celive med place in online meal kit companies, Shorty ate toe merest, Hoene Chef lanthed the firnt inatort med kit fine, and at the end of 2018 , Sey were in 700 Kroper locations and expandipie in Febriary 2015 Kroper antounced that Home Chat retail mat is wonld be added to an additional 500 Kroger dutr retalkers, which ved whranced nobocics and tigh? efficient autostated warebouses, This partentip ecummerce shopping to its custamers. Cusatip? had fresher food. dectivered fasser from Ocadis