Table of Contents
1. Executive Summary 2
2. Economic Indicators 2
4. Demographic Indicators 4
5. SWOT Analysis 6
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Executive Summary
This report examines the research undertaken on distinct geographical locations to determine new locations where Publix Supermarkets can provide products and/or services to the underserved without losing money without focusing on the % gross margin for products or services offered in this reference. Thus, all the examined findings are based on the economic, competitive, demographic indicators and comprehensive SWOT analysis.
Definition:
Underserved: This refers to a population identified by the aspects such as ethnicity, minority factors, culture, place of origin, race, or shortage of or a stumbling block to accessing services and products. And also, based on this research, low-income neighborhoods can be included herein.
Unity of Access: This identifies the metrics used; in this reference, census block tracts to understand the proximity to the next supermarket.
Health diets: This is a definition based on two quantifications from Alternate Healthy Eating Index that measures foods under low-risk chronic diseases.
In this analysis, we have indicated the economic indicators based on existing data from verifiable sources, which has projected the factual scenarios in some U.S. states. And also, the competitor analysis projects distinct indicators to showcase the strategies that competitors are applying to leverage the condition for the underserved community. The demographic indicators in states such as Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina, and Virginia are reflected herein to exemplify the opportunities and thus invest in promoting strategic policies that will reduce pricing for the community without incurring significant losses. The strengths, weaknesses, opportunities, and threats give us an understanding of what we have and the best approaches to implement in a more seamless way to reduce the threats in possible market entries.
Economic Indicators
According to a 2017 report by USDA, an estimated 88.2% of U.S. households had food insecurity issues throughout this period. This was measured based on access to enough food healthy diets for all the household members. The same reporting period indicated that 40 million people in the food-insecure households constituted U.S. civilian non-institutionalized population, representing 27.5 million adults and 12.5 million under the age of 18. The rates of food insecurity were evident in the following groups:
Households that include children under the age of 6 (roughly 16.4%)
Households with a single woman as the sole income provider (30.3%) or a single man (19.7%) and other households with children (18.1%).
Households headed by Black non-Hispanics at 21.8% and Hispanics at 18.0%.
Households with an income lower than 185% of the poverty tract are 30.8%. (USDA, 2018)
In 2019, the percentage of households with the prevalence of food insecurity represented a 10.5% decline from the F.Y. 2011 at 14.9%. This data indicates that this was below the pre-recession level quantified at 11.1% about its publication in 2007. In this period, 89.5% of U.S. households were food secure, and from the data above, this increased prevalence levels for U.S. citizens. The remaining 10.5%, representing around (13.7 million households) were reported as food secure. USDA quantified food insecurity based on providing enough food throughout the year, thus low meager food security. This was a decline from the 2018 statistics that represented an (11.1%) which had a negative implication of the citizens based on the trend. The comparison between 2018 and 2019 showcased insignificance of 4.1% of U.S. households (5.3 million households) with very low food security, similar to a 4.3 % in 2018. The rates of food insecurity were evident in the following variables in 2019, which can be compared to the trends as mentioned earlier in the 2017 report:
Households with children under age 6 (roughly 14.5 %)
Households with children headed by a single woman (28.7 %) or a single man (15.4 % and other households with children (17.5 %)
Women living alone (13.0 %) and men living alone (12.8 %)
Households with Black, non-Hispanic (19.1 %), and Hispanic (15.6%) household reference persons.
Households with incomes below 185 percent of the poverty threshold attributed to (27.6 %) (USDA, 2020)
Competitive Indicators
This section has determined our direct competitors such as ALDI, Costco, Food Lion, Piggly Wiggly, Southern Grocers, Inc. (Top Competitor), The Kroger Co, and Walmart Inc. to offer an illustrative view of their strategies implementing to target the underserved communities. (Top Competitor). Thus the table below analyzes the approaches taken to leverage the challenges existing in underserved populations.
Competitor Name
Services to Underserved Populations
Competitive Advantage
ALDI GmbH & Co. KG Essen
Focused on implementing the buyer-supplier mutual contract on fair trading to create sustainability while considering quality, volume, convenience, and price to underserved communities.
Has an A.H. foundation to work with communities on health, housing, and education projects.
Food Lion
Created a combined entity as a strategic move to invest in quality and price in Raleigh, NC, through a three-tier pricing scheme that includes “hot sales,” “wow prices,” and “low prices” on essential items to target all clients, even the underserved.
Focused on partnerships that are key in thriving and investing in price to create a differential advantage.
Piggly Wiggly
Ensuring access to fresh, local produce costs to the underserved populations in Panama City.
Made an entry into Panama City, an underserved location due to lack of choices, while implementing high-value customer service while keeping costs relatively low.
Southeastern Grocers
Addresses food security through community donations and charitable food banks focusing on underserved populations such as the military with the help of Winn-Dixie, frescoymas, and Harveys supermarkets.
Aligns priorities to military service, weather, and natural disasters and string neighborhood ties through consistent low fresh food production costs.
The Kroger Co.
Focused on food governance CSR programs that assess the risk of human rights violations on aspects of the environment, discriminations, working hours, and compensation.
Made partnerships with James Harden and their Kroger Co. Zero Waste Foundation incorporated in 2018 to distribute food to underserved populations like low-income and elderly for eight weeks.
Walmart Inc.
They have Omni-channel retailer chains that have a presence in thriving and resilient communities.
They rolled out 3750 Walmart U.S. stores, same-day delivery, in-store activations, and store pickup.
They formed a new fintech startup in 2014 to align with innovative and financial solutions to help low-income save money. They have built low-fee money transfers, which have saved $ 1.5 billion. This is a plus because a cost-saving approach is all these underserved populations need.
Demographic Indicators
The report findings based on the prevalence of households’ food insecurity by state (average basis) were as follows in our areas of interest between 2017-2019:
State
Prevalence of food insecurity (low or very low food security) (2017-2019 average)
Very low food security (2017-2019 average)
Tennessee
12.5%
5.3%
North Carolina
13.1%
4.9%
South Carolina
10.9%
4.0%
Virginia
9.2%
3.9%
Georgia
10.0%
3.6%
Alabama
13.9%
5.9%
The above findings show that Alabama North Carolina was the highest with food insecurity than the national average in 11 states and lower than V.A. and South Carolina out of the sampling done from the census tracts. In addition, the food consumption from the respondents from the samples reported the purchase of food from supermarkets and grocery stores as the first choice under the SNAP program (USDA, 2020).
The 2017 report from USDA exemplified that across residential classifications, food insecurity was higher than the national average for households in principal cities of metropolitan areas (13.8 percent) and nonmetropolitan (rural) areas (13.3 percent), and lower for households in suburbs/exurbs and other metropolitan areas outside principal cities (9.4 percent).16 Regionally, the prevalence of food insecurity was significantly higher in the South (13.4 percent) than in the other three regions. The prevalence of food insecurity was significantly higher in the Midwest (11.7 percent) than in the Northeast (9.9 percent) or the West (10.7 percent). The prevalence of food insecurity in the Northeast was not statistically different from the West (USDA, 2018).
SWOT Analysis
Figure 1 SWOT Analysis of Publix Supermarkets_2022
At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, we will be able to prepare the legal document within the shortest time possible.