Chapter 126 - Fifty Years of Pleasure the Illustrated History of Publix Super Markets, Inc.
Today’s Chapter is based on the book “Fifty Years of Pleasure the Illustrated History of Publix Super Markets, Inc.” by Pat Watters.
George W. Jenkins Jr., often known by his employees as “Mr. George”, was the founder of Publix Super Markets. He pioneered many supermarket innovations and transformed Publix into a leading employee-owned chain known for quality and customer service. By the time of his death in 1996, Publix had grown to over 1,000 stores with tens of thousands of employees and multi-billion-dollar sales.
Here’s what I have learned:
Customer is the King
“There is only one boss-the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
— Sam Walton
George Jenkins, the founder of Publix understood that the customers weren’t just kings; they were the very reason why Publix existed. As such, the company’s motto “Where Shopping Is a Pleasure” wasn’t just a marketing tagline; it was a guiding principle that permeated every aspect of the business.
In fact, he was relentless in his pursuit of creating a pleasant and satisfying shopping experience, understanding that customer loyalty was essential for long-term success. As such, he was meticulous about store cleanliness, product quality, and customer service. As he once said, “I always felt that keeping the store clean was the most important thing.” He believed that by doing so, “the shoppers would return not just for low prices but for the pleasure of being in a Publix store, where their needs were anticipated and met with genuine care.”
While Publix was committed in providing customers with high-quality products and a wide selection, what makes Publix stands out is the overall shopping environment; Jenkins made sure that it was the best by having stores with wide aisles, soft music, and friendly employees who were eager to assist customers. As he once explained, “We need a larger store. We want to be the best. We want to be not necessarily the largest, but the best.”
“It’s not enough to have good food on the shelves; people want to be treated well, to be greeted with a smile, and to feel that this isn’t just a store but a friendly place.”
— George Jenkins
Furthermore, another way Jenkins used to prioritize customers was through the Public Guarantee program, which promised a full refund for any unsatisfactory purchase. Watters explains that Jenkins “didn’t care whether it was bad or not we gave her [customer] the money back, or something else for it. It was always a 100 percent guarantee.” This unwavering focus on customer satisfaction created a loyal following and helped Publix stand out in a competitive market.
Jenkins also understood the importance of responding to customer feedback. In fact, he “personally responded to all letters of complaint at Publix. He would write apologetic answers and would send copies of both letters to the appropriate department for further action.” This hands-on approach reinforced customer loyalty by showing that their concerns were heard and addressed promptly.
"We will never, knowingly, disappoint you. If for any reason your purchase does not give you complete satisfaction, the full purchase price will be cheerfully refunded immediately upon request.”
— George Jenkins
This reminds me of what we have learned from Bill Child at R.C. Willey. From the very beginning, R.C. Willey prioritized treating customers with respect and care, which helped build a loyal customer base. This principle was a cornerstone of the business, and it resonates throughout its history.
As a matter of fact, R.C. Willey’s founder, R.C. Willey, understood that gaining customers’ trust was primordial and was ready to do everything in order to exceed customers’ expectations. For example, when he started selling refrigerators door-to-door in the 1930s when fridges were yet to become a stable electronic in every household, R.C. Willey offered customers a no-risk trial period in order to try them out. This approach worked wonders. Once customers experienced the benefits of home refrigeration, they didn’t want to give it up, and many became lifelong customers.
Furthermore, R.C. Willey was ready to take a loss on transactions as long as it kept his customers satisfied. Jeff Benedict mentions that RC Willey “judged success on satisfied customers and sales volume, not profit margins. That's what kept people coming back to him for purchases, time and time again.”
This philosophy was maintained within the company even under Bill Child’s leadership. An example of this is when the company covered the cost to repair every washing machine that it sold that came back with a defective spin mechanism. Child’s decision to cover the cost of repairs endeared him to his customers. As such, with service like that, it was difficult for people to want to shop anywhere else.
"Every company has to have rules. Our rule was pretty broad: Take care of the customer. Treat them as you'd like to be treated."
— Bill Child
Similarly, while many businesses refused to refund customers or make a price adjustment even when they made mistakes, Bill Child believed “it was necessary to go to any extend to satisfy the customer.” As he once said, "You might convince the customer you are right. But then he never buys from you again. Worse still, he tells his family and friends, and you end up losing a lot more than one customer. So in the end you win the individual battle with the customer but lose the war.”
Empowering Ownership
"Treat employees like partners, and they act like partners."
— Fred Allen
George Jenkins understood that a motivated workforce was the delivering exceptional service and as such, he had to treat employees with respect. Not only this, Jenkins understood that he had to create the right incentives among his employees and created innovative policies such as profit-sharing and employee ownership. These policies not only created a sense of ownership that drove performance, it helped Publix to retain talents.
As a matter of fact, Jenkins wanted to make sure that everyone working in his company is a shareholder. At his initial store, Jenkins decided to give each employees “a $2 a week raise, and sold ’em one share of stock each for $100, withholding the raise money to pay for the stock. So in 50 weeks, they had it paid out. Everybody working for the store was a stockholder. And that was a good thing for morale.” Later on, Publix established the Employee Stock Ownership Trust (ESOT) where shares were granted to each full-time employee until their retirement.
Mark Hollis, a former Publix president, believed that this was the company’s ultimate competitive advantage. He mentions that “with employees like that—who feel that ‘this is my company’—with employees like that, you bet we are hard to beat.”
"How do you achieve a high degree of personalized service in your stores? We feel you can only get it through adequate salaries, with fringe benefits and a sincere interest in your employees."
— George Jenkins
Furthermore, Jenkins believed in promoting from within, ensuring that everyone working employee had the chance to rise through the ranks. This created a sense of loyalty and commitment among employees, who knew that hard work and dedication could lead to advancement. As Watters explained "Publix always promotes from within, never filling jobs from the outside, requiring every employee to start at the bottom."
Not only that, Jenkin’s people-first approach also extended to his management style which emphasized autonomy, trust and the freedom to make mistakes. Rather than micromanaging, he empowered employees at all levels to use their best judgment and to take ownership of their work. To illustrates this, Watters explains that Jenkins once asked at a meeting of supervisors for their biggest mistake they have made during the previous week. When no one was willing to confess one, Jenkins told them, “I'm going to cancel this meeting right now for one week. I want you all to go out and make a mistake and come back and tell everybody about it. That's the only way we learn— by failing and learning from our mistakes.”
"PLEASING THE CUSTOMER has been the hallmark of Publix success, and the key to doing that has been Publix's policy of treating its employees right."
— George Jenkins
This reminds me of the story of J.C. Penney, also known as the man with a thousand partners. This concept of partnership and mutual benefit was a cornerstone of James Cash Penney’s business philosophy. This idea of shared ownership was inspired from his experience under his previous employers Mr. Callahan and Mr. Johnson. Penney explained that under their supervision, “They were building a partnership chain... After ‘trying him out’ in Longmont, he had sent him to open and manage the new store in Evanston, not as an employee, but as a partner with a share in the ownership of the new store.”
This idea of expanding stores through a partnership model became an important part of JC Penney’s success as a retail store chain. As he once said, “The J.C. Penney Company is not so much a chain of stores as it is a chain of men held together by an idea. Every manager has immediate jurisdiction over the store he operates as a responsible partner. We do not work for one another, we work with one another.”
This shift in business perspective, from focusing on making money to focusing on building people, became one of the defining features of Penney’s leadership style. He believed that by giving managers a financial stake in the stores they ran, they would be more motivated to work hard and make the business a success. This partnership model created a sense of ownership and responsibility among employees, which in turn led to the growth and success of the company.
"I have lived long enough to know that there would be no happiness for me in being known or remembered only as a rich man. The happiest title that was ever bestowed upon me, by which I mean the title that has given me most happiness is: 'The Man with a Thousand Partners.'"
— J.C. Penney
Lead By Example
“They [leaders] set a standard, and everyone has to live up to that standard if it's a good standard. It's the same in every great organization.”
— Michael Jordan
George Jenkins was the opposite of an ivory-tower executive. As a matter of fact, his leadership was defined by humility, an unparalleled work ethic and a profound belief in leading by example. He never considered himself above any task, understanding that his actions spoke louder than words. This grounded approach built immense respect and set the cultural tone for Publix.
His humility and willingness to do the dirty work were legendary, especially during store openings. One employee, the night before a store opening, mentioned that "At 12:30 that night, Mr. Jenkins was showing everybody how to mop the floor. I was following up behind him. He took a lot of pride in his stores. He wasn't by any means beyond getting in there and doing the work, and letting people know just how it should be. He showed us how to do things, and he explained things. And this is the way we still try to work."
"If you want to make an impression on someone, actions speak louder than words."
— George Jenkins
Notably, Jenkins used various memorable and practical lessons to teach his employees. For example, in order to teach his employees about cleanliness, he once put a quarter on the floor of the store and covered it with a bit of paper such as a chewing gum wrapper and would wait to see if any of his employees would pick it up. When he noticed an employee passing by, he said, “Wait a minute. You see that piece of paper? Why didn't you pick it up? (…)If you'd picked that up the first time you came through, that quarter would have been yours.''
Furthermore, he was never afraid to approach his employees after their interaction with customers, if he believed they were not doing things the Publix way. In fact, when a manager questioned a customer squeezing tomatoes, Jenkins quickly approached him and said, “Now Kenny, you know the lady. She comes in here once or twice a week. She spends a lot of money. If you make her mad and chase her away, we're going to lose all that business. So those one or two tomatoes that she squeezes certainly are not worth chasing her off for.”
This reminds me of what we have learned previously on Michael Jordan. Not only was he successful on the court as a basketball player, he is also well known for building the Jordan brand, the second largest athletic shoe brand in the world after Nike. One of the first common trait he found between great leaders on the court and in business throughout the years is that they lead by example.
“That's why great leaders are those who lead by example first. You can't demand respect because of a title or a position and expect people to follow. That might work for a little while, but in the long run people respond to what they see. They might even listen, but they usually will act based on the actions of the person talking. If the CEO skips out early on Fridays, then he or she has sent a message that tells everyone else they can do the same. I practiced hard every day because I wanted every one of my teammates to know what I expected out of myself. If I took a day off, then I knew they would, too.“
— Michael Jordan
As such, considering that a leader must lead by example, it is important for a person in a leadership position to set the standard for everyone inside the organisation. As everyone will follow their lead, any single action they make as a leader will be projected as the standard required by the organisation whether it is a basketball team or a multibillionaire business.
In the case of Michael Jordan, his work ethic and practicing habits forced those around him to do the same. As he explained, “My practice habits were great. I forced those other guys to improve their practice habits. I challenged them because [Bulls coach] Kevin Loughery challenged me. At the end of practice we would scrimmage, and the losers had to run. We'd be killing the second team, and Loughery would stop practice and put me on the second team. We'd still come back to win. Those were the things the other guys started to learn.”
“My leadership came from action, all action.”
— Michael Jordan
Beyond the Book
Read "The Power of Incentives: The Hidden Forces That Shape Behavior" by Farnam Street
Read "16 Leadership Lessons from a Four Star General" by Farnam Street
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