Publix Caters to Hispanics in Georgia Store

Publix is one of the greatest retailers in the US and this is another example why. They constantly work to serve their customers and they adapt to the customer needs of the local community. The combination of service and quality of product is what we need more of from retailers across the country.

John Crossman, President, Crossman & Company

Publix is doing what they do best: Serve their consumers. While there will always be people who disagree, this example is really no different than a grocer catering to any other ethnic group in local communities throughout the US. I enjoy visiting the very specialized Asian markets we have here in Los Angeles, of course, along with a wealth of Hispanic and other ethnic stores. This is a nation of immigrants, and bringing the foods of the world to our neighborhoods is something that helps expand the perceptions of Americans who may not travel internationally.

Ralph Jacobson, Global Consumer Products Industry Marketing Executive, IBM

Unfortunately, most food retailers offer a single format with the hope of attracting a wide range of shoppers. Publix focuses on the unique needs of the market place, identifies where potential customers have to compromise and then design/builds/staffs/sources to suit. First, Sabor in Florida, then Greenwise, now an offering to Hispanics in Georgia--brilliant customer focus and added value creation.

Richard J. George, Ph.D., Professor of Food Marketing, Haub School of Business, Saint Joseph's University

Surprised at one consumer's reaction? Of course not. Why would anyone be? You can find one person anywhere who will say anything--and reporters are masters at doing it!

And as I'll wager my today's stock market gains (big risk, eh?) most commentators will agree that Publix is just doing what Publix does best--being an outstanding food retailer.

The RETAIL:NEXT study we just completed suggests that winning retail formats of the future will be based around affinity groups of all kinds. Age (Senior, Teen), interests (Outdoor, Health & Wellness) and ethnicity (African American, Hispanic, etc.) were all likely candidates for themes. So Publix move would seem on target by that yardstick as well.

But this does create an interesting extended question. Why is it that our political leaders (e.g. our current AG) challenge us socially for "retreating to our own kind on weekends" while we openly praise our business peers for smart marketing when they "exploit" an ethnic opportunity? Is there a different standard at play? Should there be?

Where is Steven Kouzoumis when we need a good "Hmmmmm......"?

Ben Ball, Senior Vice President, Dechert-Hampe

I am also a Publix fan and love having one within walking distance. I've actually been to this store in Atlanta and remember the signage and the Hispanic focus. I think this is a smart strategy as communities become more diverse. Retailers need to make the shopping experience inviting for all consumers and can't afford to ignore demographics.

Matt Hahn, Planning Manager, Walt Disney Parks & Resorts

I'm not sure why it's insulting to Hispanics. But I'm sure the press will come up with a reason!

I have long thought that Publix is one of the best retailers in the country. But let's not forget the bulk of its 1,000-store network is still in Florida--the chain's comfort zone where it is an icon among consumers. I understand Sabor is doing fairly well but the question is, how much time and money does Publix want to spend developing the concept? Do they do that or focus on Greenwise Stores? Can they do both? And will they cut back enough on merchandising strategies that may not work as well out side of Florida? And can they expand new concepts while going ahead with a massive--and much needed renovation of their IT systems?

But if anyone can do it, Publix can!

Len Lewis, President, Lewis Communications, Inc.

I think it makes complete sense for Publix to cater to this niche market and applaud their efforts to better serve the Hispanic community of Georgia. I find it unfortunate that there is anti-Spanish language sentiment but am not particularly surprised. There is a strong English-only sentiment in this country that comes from a mixture of fear and ignorance. Yet, the market is the market and if people want products/services in Spanish then companies will respond--as they should.

'lrberk'

I truly hope this is not a retail trend for the very point Ben raises--this country is in dire need of more assimilation and melting-pot soupishness--not less. Can anyone honestly argue Hispanic retail needs are not being met with existing storefronts? In addition to Walmart and access to the big retail giants, (many of which already have big Hispanic product sections) every ethnic group out there already has small entrepreneurial specialty shops and mom and pop importers to serve the community's true special products and needs. Will such actions of Publix in Atlanta, and other big retailers who copy, not just serve to take down more small businesses at a time when our economy needs them most?

Good for Publix' bottom line? Maybe. Good for America? Not so much.

'Liatt'

This will be a good experiment for Publix. In the past, they have dome well serving customers of Cuban origin. Now they are switching gears and will attempt to service those of Mexican origin. Publix has the benefit from coming in later and will not make the mistakes that their competitor pioneers made earlier.

David Livingston, Principal, DJL Research

There are two issues at hand. One is product selection and the other is language and cultural service orientation. On both fronts, Publix is very capable of getting it right. Although the Cuban-focused history is no guarantee that the Mexican focus will be as truly understood. It all depends who is calling the shots. In the meantime, there will always be those in the community that are insulted by the use of the Spanish language. They can shop elsewhere. The benefits to being relevant to a community segment outweigh the negatives of alienating those who still view the use of non-English languages as unAmerican.

Rochelle Newman-Carrasco, Chief Hispanic Strategist, Walton Isaacson

For some reason, the thinking is Hispanics will not assimilate into the American culture like the Irish, Italians, Polish, Germans and all others that came before them. This might be due to our Congress not having the backbone to make English our official language. Publix, as usual, understands their customers. By blending their traditional with Mexican products they are focusing on what the customer wants. They are bridging the gap and creating real completion for the local food retailers who are only stocking Mexican items. Note, Publix understands the differences among the many Hispanic segments. This product blending is the right way to go. Product mix should be store specific.

While working on a study in Canada, management could not understand why the Polish food section of a store was doing poorly. The answer was right outside the door. The store was located in an Irish neighborhood. Most retailers fail to understand their target customer, but more importantly, when the neighborhood changes, they don't stay current.

W. Frank Dell II, CMC, President, Dellmart & Company

Atlanta is an ideal market, provided they can pull off the change and market effectively to a Mexican consumer.

Established Hispanic markets--California, Texas, NY, Illinois, etc.--are saturated with medium to large retailers catering to Hispanics, not to mention the mom and pops.

Atlanta's Hispanic population grew by nearly 400% from 1990 to 2000 and its absolute numbers are big, and it's mostly a recent immigrant population moving there. It represents big bucks that are up for grabs.

David Morse, President & CEO, New American Dimensions, LLC

Based on Publix's history of serving customers so well, I am not surprised at this store. And what a great way for the company to learn how to market to a specific group of customers and apply those learnings to other markets where they have stores.

Odonna Mathews, President, Odonna Mathews Consulting

In light of the state's changing demographics and consumer buying power, it's quite simply a smart move. But what I really like about this is that--even during the recession when other merchants are pulling back and failing to innovate--Publix continues to move forward by targeting a new demo via a new concept. They’re carving out a slice of the market, giving the company time to evaluate and refine the concept, and ultimately setting the course for success.

As for the anti-Spanish reaction noted by one consumer, it doesn't surprise me. Barring some major outcry from consumers across the area, it's best to ignore the detractors and focus on success.

Tim Henderson, Independent Retail Consultant, Independent