Gainesville Report: Publix May Be Weighing Option of Smaller Store

If Publix does debut a smaller-store prototype, it would be joining a growing trend in the industry

By John Ceballos
THE LEDGER

Published: Wednesday, June 10, 2015 at 11:59 p.m.

Last Modified: Wednesday, June 10, 2015 at 11:59 p.m.

LAKELAND | Rumors of Publix Super Markets Inc. launching a smaller-scale version of its successful grocery stores have resurfaced.

Representatives from the Lakeland-based chain met with city of Gainesville planning staff members — including the planning manager, Ralph Hilliard — about constructing a smaller-concept prototype near the University of Florida campus, according to a report in The Gainesville Sun.

Publix spokesman Brian West declined to comment specifically on the development or imminent debut of a smaller store.

"We continually evaluate our store prototypes and market area opportunities," West said.

"There are many factors considered in site selection and choosing the appropriate prototype for the site."

The Tampa Bay Business Journal reported in October that Publix was developing a design for a 20,000-square-foot store in Charlotte, N.C.

West said the average Publix store is about 45,000 square feet, and the chain's current smallest location is 27,000 square feet.

The proposed site — 201 NW 13th St., Gainesville — is presently occupied by the city's first McDonald's, which opened in 1968. According to The Gainesville Sun report, McDonald's officials are in the process of relocating the restaurant.

If Publix does debut a smaller-store prototype in the near future, the company would be joining a growing trend in the supermarket industry.

"If you're trying to reach customers, especially in any urban or underserved areas where there aren't a lot of grocery options, a smaller store is a way of going into those areas without as much of a commitment in terms of cost," said Lorrie Griffith, editor of the southeast edition of The Shelby Report, a monthly publication that covers the supermarket and food distribution industries.

Griffith noted that other grocery chains have already placed a greater emphasis on opening smaller alternatives, which allows companies to move into crowded markets like college towns and urban areas more easily.

Last year, Wal-Mart opened more Express and Neighborhood Market locations — which range in size from 10,000 to 40,000 square feet — than 200,000-square-foot Supercenters for the first time in the company's history.

Recently, Publix Super Markets ranked No. 101 on Fortune 500, an annual ranking of U.S. companies based on revenue. Publix reported $30.8 billion in revenue in 2014.

"Most companies have more than one size of store that they open," Griffith said. "These small and express concepts are a good option if you're only going to the store for a few things or to pick up ingredients to make a meal that same night, and you don't want to stand in a checkout line for 20 minutes.

"It's also a way to serve their communities by providing more fresh food than might possibly be available in an area."