Both perceived service quality and labour productivity are assumed to be positively related to profitability, but a possible trade-off effect between these two phenomena could distort these relationships. In an exploratory study, measures of perceived service quality, customer satisfaction and patronage behaviour were collected from customers in four Swedish grocery stores, representing four combinations of profitability and productivity. These measures were compared with productivity and profitability measures for the stores. Although perceived service quality was positively related to customer loyalty, there was no link to profitability. However, the results indicate a negative relationship between labour productivity and perceived service quality.