Publix will close seven supermarket locations across Florida, Georgia, and South Carolina by the end of the year, driven by a sales slump, according to multiple reports.
The Lakeland, Florida-based grocery chain reported total sales of $15.7 billion for the 13 weeks ending June 27, marking a modest 1% increase from $15.6 billion during the same period last year. For the first six months of the year, sales climbed 1.5% to reach $31.9 billion, up from $31.4 billion.
That slow growth follows a rare earnings decline during the first quarter. For the three months ending March 28, Publix posted net income of $794 million, representing a 21.5% drop from the $1 billion reported in the first quarter of the previous year. Most of that decline stemmed from unrealized losses on equity securities.
Comparable-store sales contracted during both periods. For the second quarter, comparable-store sales dropped 0.5%, while the first six months of the year saw a 0.3% decline.
Publix pointed directly to shifts in Medicare drug pricing and weaker consumer spending as the primary factors behind the revenue and comparable-store sales pressures. To address the retail footprint, the company scheduled seven specific storefronts to power down in the coming weeks.
Four of the closures will take place in Florida, two in Georgia, and one in South Carolina. The affected properties include:
- St. Petersburg, Florida, at 5577 Park Street N
- Miami, Florida, at 8250 Mills Drive
- West Palm Beach, Florida, at 828 Southern Boulevard
- Palm Bay, Florida, at 4711 Babcock Street NE
- Atlanta, Georgia, at 1380 Atlantic Drive NW
- Chamblee, Georgia, at 2562 Shallowford Road NE
- Goose Creek, South Carolina, at 208 Saint James Avenue
| Financial Metric | Q1 Period | Q1 Figure | Q2 Period | Q2 Figure |
|---|---|---|---|---|
| Net Income | Ended March 28 | $794 million (-21.5%) | Ended June 27 | Not reported |
| Total Sales | Ended March 28 | Not reported | Ended June 27 | $15.7 billion (+1%) |
| Comparable-Store Sales | First 6 Months | -0.3% | Second Quarter | -0.5% |
Not all of the affected sites will remain permanently dark. According to the reporting, some of the closed locations are slated for complete rebuilding projects as the grocer adjusts its physical real estate portfolio to match current sales conditions.
