To suggest that Publix does not know the grocery business is ridiculous. They have had to address several challenges (Target, WalMart, Costco, etc.) and they continue to grow. Next challenge they will face may be from Amazon. If Sav-a-lot is a threat they will figure out how to handle that too.
I suspect that some neighborhoods are not profitable enough, and when you consider the risk to life and limb in some parts of town it makes a lot of sense for Publix to stay out.
Also, Publix needs to have a certain minimum size for a store to work with their model. So when you add in parking and access to the highway there are some locations that don’t make sense.
I don’t shop in Winn Dixie, except for beer ;-) ... but there are still a lot of WD stores out there.
Who suggested that?
If Sav-a-lot is a threat they will figure out how to handle that too.
Neither Sav-A-Lot, Aldi or Walmart seem to be a serious threat to Publix so far.
Publix has carved out it's own niche and has built tremendous customer loyalty from what I have seen.