Dive Brief:
- Publix announced Monday that its sales ticked up 1% year over year, to $15.5 billion, and comparable-store sales decreased 0.6% during its third quarter, which ended Sept. 26. The results marked the fifth consecutive quarter of slowing comp sales for the Florida-based grocer.
- The grocer’s net earnings of $1.1 billion for the quarter were down less than 10% compared with the same period last year.
- Publix said that reduced drug prices tied to the federal Inflation Reduction Act and shifts in consumer spending led to the sluggish sales.
Dive Insight:
Since mid-2025, Publix has seen its comp sales dampen as the grocery chain weathers ongoing price sensitivity among consumers as well as depressed drug sales linked to the change in Medicare maximum fair pricing.
“We know many of our customers are feeling the effects of a challenging economy,” Publix CEO Kevin Murphy said in a statement.
Like its Q2 results, Publix saw its sales increase by only 1% year over year this quarter — a stark contrast to the 7.3% increase the grocer recorded during its second quarter of fiscal 2025.
During Q3, the grocer joined the Medicare GLP-1 Bridge program, a temporary federal assistance initiative that lets eligible Medicare enrollees access select weight-loss medications for a $50 monthly copayment. Publix announced in late July that its pharmacies are participating in the program, which runs through Dec. 31, 2027.
For the nine-month period ending Sept. 26, Publix has opened 23 stores, remodeled 78 and closed 12, according to a Securities and Exchange Commission filing. In early October, Publix reached the milestone of opening its 10th store in Kentucky — its newest expansion state.
On Sunday, the price of Publix’s stock, which is not publicly traded and is only available to the grocer’s workers or board members, decreased from $19.60 per share to $18.70.
