Retail & Distribution

Publix Pushes Deeper Into Kentucky, Kroger's Home Turf

Publix opens two Northern Kentucky stores in early October and targets a dozen statewide by year-end, pushing into long-time Kroger territory despite slowing sales.

Publix Pushes Deeper Into Kentucky, Kroger's Home Turf
Publix Pushes Deeper Into Kentucky, Kroger's Home TurfWalmart Corporate / Openverse

Publix will open two Northern Kentucky stores in early October, pressing its expansion into a region long dominated by Kroger. A Gateway Commons location opens Oct. 3, followed by a Farmview Commons store on Oct. 7, according to multiple reports.

The Lakeland, Florida-based grocer will eventually operate five stores in Northern Kentucky. The area has been known for decades as Kroger territory.

The chain operates seven Kentucky locations after entering Louisville in early 2024. It runs stores in Cold Spring, Lexington and Walton, and has four more planned for Elizabethtown, Florence, Hebron and Independence.

Publix aims to operate a dozen stores in the Bluegrass State by the end of the year.

The buildout comes as the company's financial results show strain. Publix reported modest sales growth in the second quarter, with changes to Medicare drug pricing and softer consumer spending weighing on revenue and comparable store sales.

Sales totaled $15.7 billion for the 13 weeks ended June 27, up 1% from $15.6 billion in the year-ago period. For the first six months of the year, sales increased 1.5% to $31.9 billion from $31.4 billion.

Publix came off a rare earnings decline in the first quarter, citing some of the same pressures. The retailer posted net income of $794 million for the three months through March 28, a 21.5% drop from $1 billion a year earlier. Unrealized losses on equity securities caused most of the decline.

For grocery marketers, the Kentucky push signals that Publix intends to keep gaining shelf and shopper share against Kroger on its home ground even as margin pressures build. A dozen stores by year-end would give suppliers and regional advertisers a substantially bigger Publix footprint to plan against in the state.

Source: Supermarket News

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James Calloway

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Correspondent covering media and advertising at Target Marketing.

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