According to a Wall Street Journal article reprinted in the Austin American-Statesman, Houston is ground zero in an escalating grocery business battle between longtime Texas grocer HEB and retail giant Wal-Mart:
Although H-E-B is relatively unknown among consumers outside of Texas, it’s providing a blueprint for competing successfully against Wal-Mart that’s being closely watched by the grocery industry.
Even as Wal-Mart has spread throughout the state, with 213 supercenters, H-E-B has held on to market share above 60 percent in key cities, including Austin and San Antonio.
Now, both retailers have set their sights on Houston, the nation’s fourth-largest city and one of its toughest grocery markets because of an eclectic immigrant population and cutthroat competition. Since 2000, H-E-B and Wal-Mart have opened stores and grabbed market share from local competitors. Houston is the greatest test yet of H-E-B’s strategy of thriving in Wal-Mart’s shadow by paying attention to local tastes.
The whole article is available here. It’s some good journalism.
It’s a shame that the Chronicle rarely produces anything comparable.
(Update) A reader passes along this link, which does not require registration for viewing.
