Publix is one of the great success
stories of the
American financial markets. Starting in the South, where a tradition of
customer service and courtesy has long held sway, it is gradually
creeping
north and west, and is sweeping away other grocery superstores wherever
its
stores are built. Publix stock is on the rise. But few people outside
the
Publix area really understand why they’re successful.
Clever marketing, great customer service, and
quality over
low prices are the core of Publix’s success. While Wal-Mart focuses on
the
other end of the market – the end that, with limited financial means,
wants the
lowest possible prices for reasonable quality – Publix focuses on the
customer
base with a little more money to spend. The average Publix customer is
more
interested in great quality than in saving a couple of dollars, and in
being
treated like royalty rather than herded through cattle-call lines with
harried
cashiers.
Not only is Publix focused on service, they have
great
marketers who know how to create a buzz. Kroger, one of its major
competitors,
tends to plan around the opening of a Publix near its stores by waging
deep-discount wars and trying to create buzz with prices. Publix, on
the other
hand, puts up eye-catching billboards and somehow draws incredible
interest
without seeming to try. If you’ve ever been to a Publix opening, you’ve
seen it
yourself.
Publix stock tends to follow a different pattern
from
Wal-Mart and other stores associated with discount prices. When the
economy is
very good, Publix will do well, as will everyone else. But because of
the way
wealth is concentrated in America,
Publix stock is more stable when the economy takes downward turns. And
because
Publix builds its stores in areas with high concentrations of wealth,
its
investors tend to be people who shop there anyway – and if you shop
where you
invest, you’re less likely to worry about a downturn when you’re
walking
through packed aisles.
If you’re looking for the blue chips of the
future, Publix
stock is almost certain to be a great choice. While Kroger and Wal-Mart
are
still secure in their market niches, Publix is forcing them to change
their
marketing patterns as it gradually moves stores into areas historically
controlled by other grocers. It’s a trend-setter to watch.
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