Tuesday, June 16, 2015

Publix to other grocers testing online shopping: Good luck with that

Jun 11, 2015, 7:15am EDT
Two key competitors to Publix Super Markets Inc. are testing out online grocery shopping, but the Lakeland-based grocer says it's difficult to profit from the service.
Kroger Co. announced Wednesday that it would offer online shopping — in which customers select their groceries online and then pick them up — in its hometown of Cincinnati, with plans to eventually expand to other regions.
Walmart Stores Inc. said last week that it has been " delighted" with the early performance of its Pickup Grocery store, a pilot program near its headquarters in Bentonville, Ark.

"Anyone can offer online shopping, even in the grocery business," Publix spokesman Brian Westsaid Wednesday. "The struggle is making it profitable."Publix tried out online grocery shopping in the late 1990s, but the company didn't see the return it expected on the service. Last year, it launched online ordering for deli meats, cheeses and platters and recently expanded that service to include bakery items.
Walmart is Publix's top competitor in Florida, where the two hold the most market share. Kroger, which owns Harris Teeter, is Publix's top competitor in the Carolinas, where Publix is on an aggressive growth path.
To retain and grow market share, Publix has focused on locking down prime real estate and adding upscale touches to its stores, from more organic options to prepared foods.
Lakeland-based Publix's footprint includes more than 1,100 stores in six states in the Southeast.

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