The 11 Biggest Publix Competitors in 2024

Publix faces fierce competition from national chains and regional grocers. Here is an in-depth look at Publix‘s 11 biggest competitors in 2024:

1. Kroger

With over 2,700 supermarkets and 2021 sales of $137.9 billion, Kroger is by far Publix‘s largest competitor. Kroger threatens Publix with its own popular private label brands, pharmacy and fuel centers, and a very similar overall grocery offering.

Kroger‘s key advantage is its national scale and $25.6 billion in 2020 operating profits, which allow it to leverage purchasing power. Kroger aims to win on price and convenience through click-and-collect pickup and delivery services.

According to Jenna Finkelstein, a retail analyst at McKinsey, "Kroger‘s data analytics capabilities, expansive own brands portfolio, and personalized promotions put enormous pressure on regional chains like Publix to compete on price and value."

2. Walmart

Walmart‘s over 5,300 US supercenters pose a major threat, especially in suburban and rural areas. Walmart‘s grocery sales grew 9.8% in 2021 on top of 2020‘s 10% jump, showing it continues to gain market share.

Walmart competes on rock-bottom pricing and one-stop convenience. Its grocery pickup and delivery services grew nearly 120% in 2021, evidence of Walmart‘s e-commerce push. Publix struggles to match Walmart on price, putting pressure on its margins.

3. Aldi

Aldi has over 2,000 US stores and counting, with aims to be the #3 grocer by store count by 2025. Already, Aldi‘s efficient business model allows it to offer private label items at up to 50% less than national brands.

Aldi‘s focus is no-frills essentials rather than specialty departments and services. According to grocery strategist David Bishop, Aldi‘s limited assortment "provides their shoppers even more savings, allowing Aldi to aggressively gain market share from traditional grocers like Publix."

4. Amazon

Amazon‘s 2017 acquisition of Whole Foods gave it an instant foothold in physical grocery, complementing its #2 position in online grocery behind Walmart. Amazon leverages its Prime member base to cross-sell groceries and meal kits.

Amazon‘s wide selection, delivery network, and integration of physical and virtual shopping poses a long-term concern for Publix. However, Publix has focused on high-quality perishables and prepared items where Amazon still lags.

5. Costco

Costco‘s enormous volume and direct-to-consumer model allows it to competitively price bulk dry goods, meat, produce, and dairy. Its $60 billion in fresh grocery sales dwarfs Publix‘s total revenue. Costco‘s treasure hunt shopping experience also threatens Publix‘s more traditional format.

To compete, Publix will likely expand its own direct purchasing relationships and bulk options while making the in-store experience more exciting to shoppers beyond just low prices.

6. Southeastern Grocers (Winn-Dixie, Bi-Lo)

Publix‘s core Southeastern markets are heavily contested by competitor Southeastern Grocers and its Winn-Dixie and Bi-Lo banners. Southeastern emphasizes low prices and quality fresh items under its "Fresh for Everyone" positioning.

Winn-Dixie‘s improved execution in recent years has helped it gain share versus Publix in regional markets like Florida and the Carolinas. Publix has relied on superior customer service to maintain its advantage.

7. Trader Joe‘s

Trader Joe‘s unique private label approach makes it a specialized competitor in prepared foods and innovative products. Shoppers flock to Trader Joe‘s for its fun finds and store experience versus one-stop shopping.

By targeting a similar upscale demographic, Trader Joe‘s forces Publix to up its game in store atmosphere, compelling private brands, and alternative food choices rather than competing solely on one-stop convenience.

8. Target

Target devotes significant and growing floor space to grocery, especially fresh and prepared items. Target uses groceries to drive store traffic and boost basket size. Its small-format stores with fresh produce, bakery and grab-and-go foods threaten Publix.

Publix is unlikely to match Target‘s general merchandise assortment but can differentiate with higher quality fresh foods and superior customer service compared to Target‘s more self-service model.

9. Lidl

This fast-growing German discounter has opened over 170 US stores since 2017, targeting high-density, low-income areas. Lidl offers rock-bottom prices on its private label items and limited assortment of mostly essential groceries.

Though still tiny compared to Publix, Lidl‘s expansion pace and bare-bones model present a longer-term threat, especially as economic conditions worsen for many shoppers. Its fresh bakery is a competitive weapon against traditional chains.

10. Sprouts Farmers Market

Sprouts is carving out a niche with its focus on fresh, natural and organic items at value prices. Its small-box stores with produce, bulk foods, and prepared items are ideal for quick grocery trips in densified urban corridors.

Though not a perfect substitute for full-service supermarkets, Sprouts‘ specialty offerings and emphasis on health still allow it to take share in certain categories like high-end produce that overlap with Publix.

11. Albertsons Companies

Albertsons is a traditional grocer like Publix but has greater scale, operating over 2,200 stores under banners like Albertsons, Safeway, Shaw‘s, and more. Its investments in own brands, loyalty programs, and ecommerce improve its competitive position.

Publix‘s concentration in the Southeast insulates it somewhat from Albertsons, but its merger with Safeway strengthened its position in Florida. Publix must continue to focus on freshness, quality and service to beat Albertsons‘ aggressive price promotions.

In summary, Publix competes against expanding national discounters on price while protecting its strengths in service, quality perishables, prepared foods and regional brand equity. Investments in digital capabilities, own brands and the in-store experience will help Publix maintain its leadership.