Publix, the popular grocery chain headquartered in Lakeland, announced its fourth consecutive quarter of slower sales growth.
On August 3, Publix Super Markets, Inc. stated in its quarterly report that overall sales revenue has increased by only 1% for the quarter ending June 27, compared to 7.3% growth in the same quarter last year.
Meanwhile, comparable store sales decreased by 1.5% over the past quarter, versus last year’s 6% reported growth. The chain stated that growth was “negatively affected by economic conditions impacting consumer spending” as well as a new federal policy that affected in-store pharmacies.
Similar to other major grocery chains such as Walmart and Albertsons, pharmacy revenue at Publix stores took a hit due to a change effective nationwide as of Jan. 1. Federal program Medicare now reimburses any pharmacy a lesser amount for 10 popular pharmaceutical drugs, including for blood pressure and diabetes.
Publix, which operates 1,440 supermarkets located in eight southeastern U.S. states, employs 8,008 people in Lakeland, making it the city’s top employer. It is also considered the largest employee-owned company in the U.S., with more than 260,000 total employees.
The price of Publix stock, which is not publicly traded and is only available to current workers or board members of the grocery chain, declined 4.2% to $19.60 per share.
Publix CEO Kevin Murphy referenced economic headwinds in a press release, stating, “I’m grateful for our associates’ commitment to our customers, our communities, and each other, especially during this difficult economic time.”
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