Publix Sees Sales, Earnings Increase for Q4, Fiscal Year
The historical influx of winter residents to warmer states and increased purchases of products during the Thanksgiving and Christmas holidays have helped Florida-based Publix Super Markets' sales surge during its fourth quarter. The grocer reported sales for the quarter ended Dec. 25, 2021, of $12.6 billion, a 12.4% increase from $11.2 billion in 2020. Comparable-store sales for the quarter increased 10.5%.
Net earnings for the quarter also rose slightly to $1.1 billion, compared with $1 billion in 2020, an increase of 3%. Earnings per share grew to $1.53 per share, up from $1.47 per share in 2020. Excluding the impact of net unrealized gains on equity securities, net earnings for the fourth quarter would have been $959.7 million, compared with $918.5 million in 2020, an increase of 4.5%. Earnings per share would have been $1.40 per share, compared with $1.32 per share in 2020.
During the fourth quarter, Publix took steps to improve the convenience of its e-commerce offering by expanding its partnership with San Francisco-based Instacart to introduce Publix Quick Picks. The new virtual storefront enables customers to shop from the grocer for delivery in as fast as 30 minutes via Instacart Priority Delivery. Publix Quick Picks was successfully piloted in Tampa, Fla., before expanding across the grocer's seven-state market area.
Meanwhile, the employee-owned company also reported its annual results for 2021. Its sales for the fiscal year ended Dec. 25, 2021, were $48 billion, a 7% increase from $44.9 billion in 2020. Comps increased 5.4%.
Net earnings for the fiscal year were $4.4 billion, compared with $4 billion in 2020, an increase of 11.1%. Earnings per share rose to $6.40 per share, up from $5.67 per share in 2020. Excluding the impact of net unrealized gains on equity securities, net earnings for the fiscal year ended Dec. 25, 2021, would have been $3.6 billion, compared with $3.7 billion in 2020, a decrease of 2.6%. Earnings per share would have been $5.21 per share, compared with $5.27 per share in 2020.
At the end of 2021, the company operated 1,293 supermarkets throughout its seven-state operating region, compared with 1,264 at the beginning of the year, and remodeled 134 stores.
Publix said last year that it was preparing to increase its market area to eight states. The company released plans to expand its retail operations to Kentucky in 2023 with two new stores in Louisville. One store is expected to be operational in the fourth quarter of 2023, the other in the first quarter of 2024.
“We are proud to be planting roots in [Kentucky's] Jefferson County and look forward to building lifelong relationships with our new customers,” said Publix CEO Todd Jones. “With two planned stores currently in development, we are excited to continue sharing our Publix culture and commitment to service with the Bluegrass State.”
Looking forward, Publix is also continuing to set itself up to meet the ever-evolving needs of its shoppers. For example, it recently expanded its distribution partnership with KeHE Distributors LLC to help elevate its product selection with an improved natural and specialty assortment. Naperville, Ill.-based KeHE is one of the largest pure-play distributors of natural and organic, specialty, and fresh products to more than 30,000 natural food stores, chain and independent grocery stores, e-commerce retailers, and other specialty product retailers throughout North America. The expanded partnership will provide Publix with a wider selection in categories like vitamins, supplements and body care.
Privately owned and operated by its more than 230,000 employees, Lakeland, Fla.-based Publix has more than 1,200 stores in Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina and Virginia. The grocer is No. 11 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America.
