The Florida based retailer has achieved sales of $34bn in 2016, with profits of $2.03bn, a record high for the retailer.
Strong Q4 and full year performance
Sales for the year were up 5.1%, a strong performance in a tough trading environment. This years sales included an extra week so excluding this, sales were up 3.5%. Same store sales for the year were up 1.9%, driven primarily by increases in prices and footfall. For Q4, revenues were $9.1bn, up 11.1% on 2015 (the extra week falls into this quarter so excluding this they were up 3.7%). Same store sales for the quarter were up 2.2% and profit was up 4.5% to $544.5m.
Expansion into new markets
With tough market conditions, Publix continues to focus on expansion as a way of growing its sales and market share. It plans to enter the state of Virginia in 2017/2018, which will be the seventh state for the retailer. As part of its plans to expand into Virginia, it has purchased 10 Martin's stores in the Richmond area, as a result of Ahold USA Inc and Delhaize Groups merger. Publix will spend around $16m renovating the stores, before opening them under the Publix banner.
The area of Virginia, and particularly Richmond is becoming increasingly competitive, with Lidl having also confirmed a location here as part of its plans to enter the US market. Wegman's, Trader Joe's and Aldi also all operate here, as well as Publix's biggest competitors, Walmart and Kroger. This move is part of Publix's long term strategy to move into new markets and establish a greater presence.