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Publix changes leaders, but stays in the family

Charlie Jenkins will hand off to his cousin.

By MARK ALBRIGHT, Times Staff Writer
Published September 6, 2007

ADVERTISEMENT Annual net earnings doubled to $1-billion during Charlie Jenkins Jr.'s tenure. Ed Crenshaw, the grandson of the chain's founder, will take over.

In a long-expected changing of the guard at Publix Super Markets Inc., Charlie Jenkins Jr. on Wednesday said he will retire as chief executive officer in March to turn the reins over to his cousin, Ed Crenshaw.

The Jenkins era was a tumultuous one for family supermarkets, but ultimately prosperous for his company. Publix has weathered an extended assault on its dominant place among Florida grocers after waves of consolidation and new forms of competition wiped out many family-owned supermarket chains around the country.

Rather than just defend its turf against the spread of discount stores and wholesale clubs, Jenkins kept Publix on the offensive by marching into its fifth state with stores as far north as Nashville and experimenting with a variety of new ventures - even a restaurant chain - as traditional supermarkets try to reinvent themselves.

A grandson of chain founder George Jenkins, the 56-year-old Crenshaw was prepped for the top job during a 33-year career that started as checkout clerk but was fine-tuned by an 11-year stint as president of the company as it confronted some of its fiercest competitive challenges.

"We've had a succession plan in place," said Maria Brous, spokeswoman for the Lakeland-based chain that grew from the nation's seventh- to fifth-largest supermarket chain under Jenkins, who will turn 65 a few days after he steps down. "He's been clear from the start he would only serve until he was 65, so this is a natural transition."

Jenkins, the founder's nephew, will become chairman of a company still tightly controlled by family members whose stock in the nation's largest employee stock ownership venture is worth more than $1.8-billion.

Meanwhile in a move almost as significant as Crenshaw's ascension, Todd Jones, 45, was named to take over Crenshaw's job as president. A 27-year Publix veteran, Jones has been senior vice president of product business development, a job that includes private label products, food plants and logistics.

Crenshaw, whose mother, Delores, is George Jenkins' adopted daughter, grew up in Texas. He never thought about a career with Publix. After getting a business degree from Baylor University, he planned to join his father's food brokerage and was advised to take an entry-level job with Publix to learn the grocery business. Within a year, his father died and Crenshaw chose to stick with Publix.

In a June article for a Baylor alumni magazine, Crenshaw described how working in a family business is a 24/7 experience laden with disagreements.

"We all respect we have a CEO who makes the final decisions," he wrote. "I may not always share the same opinion, but I will support the decision for the good of the company."

Under the reclusive Charlie Jenkins, Publix fended off a fierce assault by Wal-Mart Stores Inc., which has zoomed from no presence in Florida a decade ago to become the state's second biggest grocery retailer.

While sales of all big supermarket competitors have declined sharply, Publix under Jenkins kept a firm grasp on an industry-leading one-third of the state's retail grocery sales. In South Florida, Publix controls more than half the market. Jenkins fell about 100 stores short of his ambitious plan of adding 340 stores during his first five years. But he dramatically improved the chain's profitability by doubling to $1-billion the company's annual net earnings by 2006.

The war is far from over. Wal-Mart has no plans of slowing down its construction of new supercenters and neighborhood markets in Florida, an epicenter of its muscling into the grocery business. Target Corp. is accelerating the growth of its own version of the supercenter in Florida that mirrors Wal-Mart's discount pricing formula that's 10 to 15 percent below supermarkets. Winn-Dixie, Sweetbay and Albertsons have stabilized after painful restructuring and are poised to start opening new stores again. Costco and BJ's Wholesale continue to add new outlets across the state and natural-gourmet food supermarkets such as Whole Foods Inc. are trying to siphon off more of the high-end business.

On Jenkins' watch, Publix countered with a plethora of new ventures to keep up with people's changing tastes and the supermarket industry's continuing loss of food-spending dollars to restaurants.

Publix abandoned an unprofitable online grocery delivery service in South Florida, but now owns Crispers, its own 39-store restaurant chain, offers takeout meals at a Carrabba's Italian Grill inside a Sarasota store and serves full meals at many of its delis. The chain has several Pix convenience stores to sell gas. To counter drugstores, 10 Publix stores offer Little Clinics staffed by nurse practitioners and its pharmacies have grown to 400 stores and an online service. Publix also has developed four stores for its own alternative to a natural foods chain called GreenWise and four Publix Sabor stores that are customized for Hispanic neighborhoods. The chain plans its first venture in the fast-growing easy meal prep business.

To fit in congested, underserved urban neighborhoods, Publix also designed a smaller store model that it fits on top of parking garages or as the ground floor in condo towers.

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.

Publix today vs. five years ago

Despite heightened competition from many fronts, Publix Super Markets stayed on the offensive and improved profitability during Charlie Jenkins' five years as CEO.

Fiscal Year 2006 2001

Revenues $21.6-billion $15.2-billion

Stores 892 684

States 5 4

Employees 140,000 126,000

Net Earnings $1-billion $500-million

Earnings per share $1.29 52 cents

Shareholder Equity $4.9-billion $3-billion

Rank Among U.S. Supermarkets 5th 7th

Source: Publix Super Markets Inc., SEC filings

[Last modified September 6, 2007, 03:53:30]