Publix, which operates more than 1,400 stores in the U.S., has recently landed in hot water with customers.
As it struggles with weak sales growth, the grocery chain has decided to discontinue a yearslong payment option that made grocery shopping more seamless for customers, sparking criticism from shoppers who relied on it.
After seeing comparable-store sales increase 6% year over year in the second quarter of 2025, Publix’s sales growth has since slowly dipped. In the third quarter, its comparable sales increased by 3.4%, and in the fourth quarter, it spiked by a mere 0.7%, according to its latest earnings report.
The company said the slow sales growth during the fourth quarter, compared to the same quarter in 2024, was mainly due to the high demand it faced in October 2024 from Hurricane Milton.
Many U.S. consumers have also been more cautious about their spending as they face higher prices for essential goods due to inflation. A survey from Swiftly in December found that 68% of Americans struggle to afford groceries.
Also, 65% said rising food prices have impacted how they shop, with many relying on digital tools such as retailer apps, digital coupons, cashback offers, and grocery loyalty programs to save money.
“Today’s shoppers expect savings to be simple, intuitive, and highly personalized across mobile, web, loyalty, and in-store touchpoints,” said Swiftly Co-Founder Sean Turner in a press release. “Technology is the infrastructure that enables grocers to honor that trust while delivering value at scale.”
Publix will soon discontinue a convenient digital payment option
As more consumers seek value from digital experiences grocery chains offer, Publix has recently decided to discontinue Publix Pay, its contactless in-app payment option first made available to customers in 2020.
Publix Pay allows shoppers to use the Publix app to store payment methods such as credit, debit, and gift cards, and then scan an in-store QR code to check out at the register using the PIN-protected payment tool.
The tool also allows customers to automatically redeem digital coupons they had clipped in the app and to receive digital receipts.
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Publix Pay will be officially discontinued on March 19. In a statement to Grocery Dive, a Publix spokesperson said the change will allow the company to shift its focus to other priorities aimed at improving the customer experience.
“This change allows us to focus on enhancing and expanding other features that provide value and convenience for our customers,” said the Publix spokesperson.
Customers will still be able to make payments with gift cards saved in the Publix app. They can also use other contactless pay options, such as Apple Pay and Google Pay, on their phones in stores.
Publix faces backlash as customers react to payment change
Publix notified customers of this change via email, and some took to social media platform Reddit to claim that the move was “a step backwards,” since Publix Pay made shopping in stores easier.
“So dumb. Been paying this way for 6 years. Loved not having to enter my phone number in the keypad for digital coupons/savings or touch anything. Great job, Publix. Keep making things worse and less convenient,” wrote one Publix shopper.
“I think it’s a step backwards as well. Publix Pay allows me to use a preferred card and not have to enter my phone number to get a digital receipt. Now I’ll have to enter my phone number and either use Tap To Pay or carry my preferred card with me. I usually do not carry it with me and I haven’t entered it into Apple Pay. I use this card exclusively with Publix and nowhere else,” wrote another.
“Publix pay was a lifeline for me when I family member let me link their card for groceries after losing my job. Shame that they are discontinuing it,” wrote another Publix customer.
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Why Publix’s payment change may put the chain at a disadvantage
Frustrated customers are the last thing Publix needs. This criticism is occurring at a time when the grocery chain is already facing backlash over its high prices, with some customers accusing it of “price gouging.”
Publix is also facing heightened competition from rivals such as Walmart and Kroger, which both saw their comparable sales (excluding fuel) increase by 4.6% and 2.4%, respectively, year over year during the fourth quarter of 2025.
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Both retailers also currently offer touch-free payment options in their apps, which will soon give them a leg up over Publix.
It is vital that Publix doubles down on offering value and convenience to its customers, as many Americans continue to feel financial strain this year, leading them to cut back on spending, a new survey from EY-Parthenon found.
How Americans are adjusting their spending habits in 2026:
- Roughly 1 in 4 U.S. consumers said they were financially worse off in December compared with the previous month.
- About 70% reported having moderate or major concern about the high cost of living, especially when it comes to grocery prices.
- Travel, dining out, and entertainment rank among the top spending categories in which consumers are cutting back.
- Even higher-income shoppers are watching prices more closely, often shopping sales, comparing prices, and turning to private label products.
Source: EY-Parthenon
“Rising financial anxiety shows pressure is building beneath the surface,” said EY-Parthenon Americas Retail Sector Leader Mark Chambers in a press release.
“Reaching consumers long-term will require retailers to strike the balance between implementing cutting-edge technology and keeping human experience at the forefront,” he added. “Retailers that emphasize value, convenience and affordability will be best positioned to maintain consumer loyalty in the months ahead.”
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