Does Kroger Own Publix? A Deep Dive Into Two Grocery Titans

Dear savvy shopper, have you ever found yourself wondering, as you wander the colorful aisles of your neighborhood supermarket, just who owns all these stores? It‘s a common question, especially when it comes to two of the biggest names in the grocery game: Kroger and Publix. While both chains offer all the essentials, from milk and eggs to paper towels and pet food, many consumers ponder if there‘s a connection between the two. Specifically, does Kroger own Publix?

As a curious retail expert and picky patron myself, I decided to investigate this query in depth. After all, Kroger and Publix are both behemoths in the $674 billion U.S. grocery industry, but they also each have distinct regional strongholds and corporate cultures. Join me on a journey to untangle their relationship and see what makes these merchants of sustenance tick.

A Tale of Two Grocers: Kroger and Publix‘s Histories

Let‘s start our expedition with a bit of background on our two featured food sellers. The Kroger Company traces its roots way back to 1883, when Ohio grocer Bernard Kroger invested his life savings of $372 to open a grocery store in downtown Cincinnati. From those humble origins, Kroger steadily expanded over the decades both organically and through acquisitions.

Key milestones include the introduction of bakeries in stores in 1901, the first Kroger-brand products in 1902 (did someone say CarbMaster?), and the pioneering move of testing self-service shopping in the 1930s. In the past quarter-century, Kroger has gotten even hungrier, gobbling up chains like Fred Meyer, Harris Teeter, and Roundy‘s to cement its status as the nation‘s largest traditional grocery retailer.

Down in the Sunshine State, Publix was born in 1930 during the Great Depression, the brainchild of founder George Jenkins. Jenkins, affectionately called "Mr. George," had a vision for a "food palace" that would be clean, bright, and stocked with Florida‘s freshest produce and quality meats. His store in Winter Haven, complete with novelties like air conditioning and wide aisles, wowed shoppers.

But perhaps Jenkins‘ most impactful innovation was making Publix employee-owned beginning in 1940. He believed, according to the company, that "when Publix associates own shares in the company, they will take better care of their customers and the company." That ethos persists today, with employees owning an estimated 80% of Publix stock. The Jenkins family retains about a 20% stake.

So in summary, Kroger and Publix both evolved from single stores to sprawling empires, but took very different paths to get there in terms of geography, leadership, and ownership structure. And spoiler alert: those paths have not converged. Kroger does not currently own Publix, despite some merger rumors that have popped up over the years. The two remain separate and spirited competitors.

Inside the Numbers: Kroger vs. Publix

Now that we‘ve traced the family trees of Kroger and Publix, let‘s see how they stack up against each other numerically. Take a gander at this table showcasing some key stats:

Sources: Company reports, Progressive Grocer, Statista

By the numbers, Kroger is clearly the larger fish, with more than double the stores, employees, and revenue of Publix. Kroger also casts a much wider net geographically, with locations spanning from the West Coast to the Mid-Atlantic. Publix‘s turf is limited to the Southeast, with Florida as its stronghold and newer beachheads in states like Virginia and Alabama.

But Publix punches above its weight in profitability, notching a whopping $4.4 billion in net income in fiscal 2021 on "just" $48 billion in sales, for a near 10% profit margin. Kroger posted a more pedestrian $1.66 billion on far greater revenue of $137.9 billion, translating to a slimmer 1.2% margin. Publix‘s ownership structure and emphasis on service help explain this profit gap.

Different Flavors: How Kroger and Publix Operate

Beyond the numbers, Kroger and Publix each have a unique zest that sets them apart. Publix stores are known for their immaculate conditions, helpful staff, and cult favorite products like Pub Subs, sweet tea, and cake. "Our culture and philosophy is to serve our customers and provide them the Publix experience they have come to expect. We believe happy associates result in happy customers," Publix CEO Todd Jones told Supermarket News.

The employee-ownership model at Publix breeds intense loyalty and engagement, with employees literally invested in the company‘s success. Full-timers are granted stock after a year on the job and stores can receive bonuses for stellar customer service scores. This helps Publix consistently rank at the top of the American Customer Satisfaction Index for supermarkets.

Kroger stores vary more in name and flavor, with banners tailored to their local markets, from Ralphs in California to Mariano‘s in Chicago. But Kroger is united by a focus on value, personalized promos, and increasingly, innovation. Kroger has gotten into the autonomous delivery game with partner Nuro and continues to expand its e-commerce reach. "Our seamless ecosystem is built on a platform to deliver anything, anytime, anywhere," Chairman and CEO Rodney McMullen stated in 2021.

Size gives Kroger purchasing power and the ability to experiment more with formats and technology. But that scale can also make it harder to deliver the consistent service that sets Publix apart. While Kroger gets solid marks for its store experience, with an ACSI score of 77 in 2022 vs. Publix‘s 83, it tends to trail its Southern rival. Shoppers give Publix top ratings for speed, staff courtesy, and sale item availability, per Consumer Reports surveys.

The Great Supermarket Rivalry That Never Was?

With Kroger and Publix each commanding sizable chunks of market share in key regions and offering similar products, it‘s natural to wonder if a merger between the two has ever been on the table. The short answer, according to industry analysts and insiders, is no. "Publix is committed to remaining privately owned and operated," asserts the company‘s latest fact sheet.

Some speculate Kroger made a play for Publix years ago, but was rebuffed because of the employee ownership structure and Jenkins family control. "Publix is not for sale and never has been," company historian Pat Watters told the Tampa Bay Times. That paper also reported Publix "has yet to participate in the grocery store consolidation frenzy."

Others believe Kroger simply has little to gain by pursuing Publix, given the probable high price tag and likelihood of antitrust scrutiny. "A Kroger acquisition of Publix would be a tough sell, politically and financially," says Burt Flickinger III of Strategic Resource Group. He estimates Publix‘s value at nearly $50 billion, a huge bite even for mighty Kroger.

The cultural differences between the two companies also make a marriage seem unlikely. Kroger‘s Cincinnati base and Publix‘s Lakeland digs are worlds apart. And Publix‘s passion for service and employee satisfaction doesn‘t always mesh with Kroger‘s investor-driven mindset. When Kroger acquired Harris Teeter in 2014, some feared Kroger‘s need for results might dilute the Southern chain‘s service rep.

Conclusion: Two Chains, Separate but Similar

So there you have it, dear reader. Kroger and Publix, while often mentioned in the same breath as grocery leaders, are very much distinct entities. Publix remains proudly independent and employee-owned, with a laser focus on service. Kroger rakes in more revenue but spreads its bets across many banners and regions.

For shoppers, this means more choice, as each store caters to different needs. Publix is your spot for a deluxe experience, with gleaming stores and gracious associates. "Publix is fast, clean, and everyone is so friendly," gushes Stacy Nelson, a Jacksonville, Florida teacher and mother of three. "It‘s my happy place." Kroger delivers the deals and increasingly, the personalized digital experience. "I love Kroger‘s app and rewards. I save so much with their coupons," says Amy Nguyen, a Cincinnati native.

Industry watchers believe Kroger and Publix will likely keep thriving on separate tracks, despite an overall move toward consolidation in the grocery sector. As long as Publix‘s employees remain happy owners, a sale is doubtful. And Kroger still has plenty of other expansion avenues, from the Ocado delivery partnership to the launch of smart carts.

But never say never. If the supermarket landscape undergoes a major shakeup, perhaps Kroger and Publix will find themselves on the same shopping list after all. In the meantime, they seem content to push each other to be better grocers, one self-scanned item at a time. And we customers will keep on loading up our carts, hoping both stores stock our favorite flavors of chip dip this week.