Find yourself shopping at Publix often? That’s by design. – The Independent Florida Alligator

He said when a company corners customers by making their stores more accessible, it creates barriers to entry for competitors.

Some argue this tactic creates unhealthy market conditions, according to UF business associate professor Brian William Swider. But in the grocery sector, it’s common for a chain to establish regional dominance.

“It’s kind of a weird industry that can have this geographical concentration that’s pretty normal when you go all around the country,” Swider said. 

And in a free market economy, Publix is within its bounds to open as many Gainesville locations as it wants, he added.

Why are there so many in Gainesville?

Over the past few decades, large grocery corporations have swallowed smaller competitors, narrowing consumer choice. But Publix, a privately owned company, has long claimed the Southeast’s grocery market. It has nearly 900 stores in Florida, compared with less than 400 Walmarts and about 200 Aldis.

On average, Gainesville’s Publix locations are about 2 miles apart, and its Walmarts nearly 5 miles apart.

In an email, a spokeswoman for Publix of North & Central Florida, Southern Alabama, Georgia and South Carolina wrote that the company has seen success in Gainesville, both as an employer and retailer. 

She said Publix provides college students with flexible work opportunities and shoppers with excellent service and products, which warrants its outsize presence in the city. But not all of its staff agree.

“Gainesville is a small town, so the amount of Publixes in that area is kind of insane,” said a Publix associate who works at one of the two locations in Butler Plaza. 

The Alligator removed the associate’s name because Publix prohibits its staff from speaking to the media.

She said she’s surprised the company is so dominant in a place where students like her have to work part-time to support themselves. Given her hourly wage and expenses, she said she cannot afford products at her own store.

In the past two years on the job, she said the price of a “Pub Sub” has skyrocketed, and the store’s meat and dairy products are out of her budget.

“We treat our guests pretty well and stuff, so I like that part of it, but I just can’t justify shopping for groceries there because of how expensive it is,” she said.

High costs, weary consumers

More than half of Americans say they still feel plagued by the scourge of inflation, particularly on the cost of food. Grocery prices are about 20% higher than they were four years ago.

Lately, that has caused Zoe Lagarenne discomfort when shopping at Publix for her favorite items.

“I like to buy powdered hot chocolate to have, and it’s almost 10 dollars or something,” she said. “And yes, it’s a lot of hot chocolate, but it’s like, that used to probably be almost half the price.”

But while the 20-year-old UF animal sciences sophomore said she’s seen lower prices at other stores, she still shops at Publix because of the nostalgia it conjures.

Shopping experience and brand image boost loyalty

The out-of-stater Gator recalls visiting the store on family vacations to Florida. Now that she shops for herself, Lagarenne appreciates Publix’s comforting familiarity. She said it also provides the best range of products.

“The reason I’m maybe loyal to them is I’ve tried Aldi, and I go to Trader Joe’s, but I can’t get everything that I want at them,” she said.

That’s certainly part of how Publix established a stronghold in Gainesville, said Kim  Morgan, a UF agricultural economics professor. 

Morgan said the company’s unique selling proposition is three-pronged: cleanliness, friendliness and reliability.

She said shoppers know what to expect when they walk into a Publix, and the company has handily outperformed its rivals by consistently delivering on what people want.

“They have a reputation that you can’t just jump in and take over,” Morgan said. “Being true to who they are and maintaining that standard, I think, is where they’ve managed to hold their own.”

Contact Natalie Kaufman at nkaufman@alligator.org. Follow her on X @Nat_Kauf.