Publix to invest nearly $2B in technology, real estate
Publix is planning to spend nearly $2 billion on remodeling stores, upgrading its IT infrastructure and buying new shopping centers.
Last year, capital expenditures totaled $1.4 billion; Publix forecasts it will spend $1.85 billion this year, according to a new SEC filing.
The grocery chain, based in Lakeland, Fla., has been in expansion mode, with at least 12 stores scheduled to open in the Richmond area during the next few years. The retailer has said it plans to add locations elsewhere in Virginia. Last year Publix opened 32 new stores and remodeled 156.
The announcement about expenditures follows fourth quarter results in which Publix reported a jump in revenue of $9.1 billion, an 11.1 percent increase from last year’s $8.2 billion. But same store sales for the grocery chain slowed in 2016 to 1.9 percent, compared to a 4.2 percent growth rate reported a year ago.
Net earnings for the fourth quarter of 2016 were $544.5 million, compared to $521.1 million in 2015, an increase of 4.5 percent. Earnings per share for the fourth quarter increased to $0.71 for 2016, up from $0.68 per share in 2015. Net earnings and earnings per share benefited from the extra week in the fourth quarter of 2016.
“I’m proud of our Publix associates — the owners of Publix — for continuing to make us a leader in our industry and providing a great shopping experience,” said Publix CEO & President Todd Jones.