PublixDirect is no more

Publix is a very large grocery retailer in the SouthEast (one of the top 25 retailers of groceries in the world), for the past 3 years or so they have run PublixDirect.com and delivered groceries in Florida. The plan was to come to Atlanta Georgia next, and then move on from there, but the expansion was delayed several times and now finally the board at Publix has decided to pull the plug on the entire "experiment".

Personally this affects me pretty deeply, because thats where I WORKED for the last 2 years as a software engineer, doooh! And also because I think the online grocery thing IS A VIABLE business and can work.

In all honesty the Publix "experiment" was profitable for the single distribution center that was in use and did 6-8K orders per week at a total gross of a million or so dollars. The problems were with the old school mentality at the Publix board, they did not empower the business and repeatedly refused to fund updates and enhancements that the team at PublixDirect recommended to improve volume. I know that sounds like finger pointing, but its true, the SINGLE facility was "4 wall profitable" and the business really just needed more commitment and more facilities to expand that success.

I am also very surprised by this decision because I honestly believe that in 4-6-8 years Publix will be FORCED by demand from customers and competition to DO THIS AGAIN. Starting over will be that much more costly and put them that much farther behind other companies.

Its of course a loss for me personally (and I had just convinced them to switch to Apache from Iplanet, using Apache for only a few months, dammit, Linux was next to replace Solaris ;)) but I also think its a huge mistake and loss for Publix.

Comments

Re: PublixDirect is no more

Hate it for ya man. That really sucks. Got anything lined up?

I hate to hear that more than your job, too. I was really looking forward to them coming to Atlanta. I was a faithful user of Webvan when they were around. Looks like my lazy ass is still gonna have to go to the grocery store.

Good luck.

Re: PublixDirect is no more

Yeah, I find it a more than a little troubling too. I have been waiting for PD to start servicing atlata forever. I miss webvan, though zifty.com has restored my "Kozmo" service recently.

One day someone will have to explain to me why people close down profitable businesses. I mean, I understand there can be lower than desirable profits, but jeez, if you are making money at it, especially in this economy, it seems like closing costs would cost you so much that any freed capital would be better left in the business.

Good luck to you and Yedvarb and the PD team.

Re: PublixDirect is no more

Bummer. Seems like a screwy decision. If it's profitable and cutting edge it just seems logical to hang on to it until you know for sure what the market is going to do. I am convinced that this will be a viable business, but webvan might have done more harm than good by blowing through so much cash so soon.

Also bummed (well jealous might be a better word) about zifty.com - I was so addicted to kozmo - and believe me, Memphis is not on the short list for a service like that.

Re: PublixDirect is no more

You guys make a great point that I missed, I wanted to order some damn groceries online too. Been looking forward to it for a long time, and now will have to wait longer, dammit.

I dont understand closing something making money either. Just to clarify though, the coprorate office, aka where I worked, was not part of the numbers that made the distribution center "profitable", it was "4 wall profitable" meaning it paid for itself and made money above that. We would have had to of replicated that in several other distribution centers to cover the cost of the corporate office. So I guess that cost (56 employees, office, so on) they decided was too great or something, but it still makes no sense to me because we DID accomplish profitability and prove this could work and we had thousands of loyal customers, Publix has really alienated a lot of people with this move.

Re: PublixDirect is no more

I've been aching for PD to come to Atlanta too... you think you young people find net.groceries convenient, try being married with a kid, so whether or not you get groceries depends on whether cranky boy's going to pitch a fit when you try to put him in the car-seat.

I've long considered buying Publix stock (it's on my yahoo ticker, just haven't done it because OTC's such a pain). Publix is where we shop and seemed a well-run company. But given this decision, I think I'll put my IRA dollars elsewhere

--invalidname

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Re: PublixDirect is no more

Yeah overall I think Publix is a pretty well run company, I must admit. But they are pretty backward thinking and pretty old school. What I mean by that is bascially conservative. I still think that a more current outlook and approach, more contemporary company, would have kept PublixDirect around because they would have had the foresight to see that this business is just a little ahead of its time, but its not a bad business.

Its a service that customers LOVE and its PROFITABLE when you do it right (it wasnt easy to get to profitability per dist center, but PublixDirect did accomplish that).

Publix has really pissed off customers with this move. We have heard from customers whom vow to never set foot in a Publix store again BECAUSE they closed PublixDirect and said customers never knew they were part of an "experiment" as the closing press relase called it.

The stock price has held its own even over the last few rough economy years. However, the closing of PD is said to be going to have an 18M quarterly revenue affect on Publix. That wont help.

Also, Publix is a private company, no can buy the stock.

Re: PublixDirect is no more

Nicely put.

Re: PublixDirect is no more

I used PDirect sometimes before it died. I have fast broadband but the site was very very slow. Slow enough to drive you crazy. (And it crashed sometimes too.) I buy $250+ worth of food a week to feed a family. It takes an hour and half in the store. That's how long it took online. So I saved travel time -- 10 minutes each way -- and paid delivery charges. Not a big winner unless my days were very jammed.

There was no visible advertising in this market. And certainly none in the stores. The product selection started out very limited, but it was improving. By the time PD died it had gotten to about the minimum it needed to be.

The product search feature was laughable. They built their own and it was very picky - leave out the first word in product name, get nothing. No suggestions if you mis-typed. They should have used something more google-like. But I think they rolled their own, which was an error.

Some product descriptions, especially for the meat, made it really hard to figure out how much you were going to get. Also, for some products, e.g. chicken breasts, they would give you a weight range. That's fine if you are buying one -- but what if you are buying eight? Then the weight range becomes several portions, so you risk buying way too little or way too much.

Etc. Etc. Etc. The interface just wasn't very good.

Give them credit for superb ontime delivery and very polite and helpful delivery guys, though. I hope they find them other jobs -- they deserve them.

Re: PublixDirect is no more

Well I will concur with you on some things. The search was an out of the box thing for the CRM product Publix decided to buy, Blue Martini, and it was HORRIFIC. It ranked results alphabetically?!?! What the hell is that. In fact I was rewriting the search entirely and due to launch new search withing days of the news that it was all over.

Blue Martini itself as a choice also contributed to other issues such as performance, but we had page loads under a few seconds. I have heard people complain a few times about performance, but overall we had literally THOUSANDS of customers and only a few with performance issues. We tested this extensively with broadband and dialup, and I used the site from home often. No problems at all (a bad page load was 6-7 seconds, but this stuff about HOURS to shop is ridiculous, must be something else going on there).

I would concur that technology decisions such as a.) an applet for navigation (stupid, plain ole stupid) b.) using blue martini which has high web overhead and hence peformance issues and c.) not using validated html and STYLE SHEETS (making page sizes larger and more complicated with "browser specific" code" made things MUCH MUCH more costly (Blue Martini software and contractors for stuff we could have written ourselves and IMHO done a better job, cost shitloads) and less user friendly.

These were all decisions pretty much made by higher level staff and contractors (from Blue Martini) at the time of design. I wasnt involved in design, I know it sounds easy to pass the buck, but all of my friends and co-workers can vouch that I pushed and pushed and pushed to fix many of these things. I was again in the middle of fixing search and had gotten them to switch to apache (with mod_deflate to lower our page sizes) only 2 months before close. I did what I could, but it sure wasnt enough.

Also dont get me wrong here, I think technology decisions and design played a part in the issues, but not a major one, again most customers were extremely happy with performance and overjoyed with service of drivers and cusomter service.

RE: PublixDirect is no more

The Publix.com website is next to useless too. You can create a shopping list;--fine; but no prices are displayed! Why the heck can they not show all the produce on line with the price, so that we can know exactly what is going to cost us when we go to their store?

At the moment they have a really retarded "create a shopping list" option. Basically, you add what you want to this stupid list, e.g. apples, grapes, etc. I can do that with "notepad" or the old-fashioned paper. Being conservative is fine; being plain stupid is not.

For a large store like Publix not having this facility is disgraceful!

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