H-E-B
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Company type | Private |
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Industry | Grocery retail |
Founded | November 26, 1905Kerrville, Texas, United States | as C.C. Butt Grocery Store in
Founder | Florence Butt |
Headquarters | San Antonio, Texas, U.S. |
Number of locations | 340 (2018) |
Area served | Texas, Nuevo León, Tamaulipas, Coahuila, San Luis Potosí, Guanajuato, Aguascalientes & Querétaro. |
Key people |
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Products | Bakery, dairy, deli, frozen foods, gasoline, general grocery, meat, pharmacy, produce, seafood, snacks |
Services | Auto health, fuel, ticket sales, utilities, and licenses |
Revenue | ![]() |
Number of employees | 100,000 (2018) |
Subsidiaries | |
Website | heb |
H-E-B Grocery Company, LP is an American privately held supermarket chain based in San Antonio, Texas, with more than 340 stores throughout the U.S. state of Texas, as well as in northeast Mexico.[2][3] The company also operates Central Market, an upscale organic and fine foods retailer.[4] As of 2017, the company has a total revenue surpassing US$25 billion.[5] H-E-B ranked No. 12 on Forbes' 2019 list of "America's Largest Private Companies".[6] H-E-B was named Retailer of the Year in 2010 by Progressive Grocer.[7] Supermarket News ranks H-E-B 13th on the list of "Top 75 North American Food Retailers" by sales.[8] Based on 2014 revenues, H-E-B is the 20th largest retailer in the United States.[9] It donates 5% of pre-tax profits to charity.[10]
History
The company was founded on November 26, 1905, when Florence Butt opened the C.C. Butt Grocery Store on the ground floor of her family home in Kerrville, Texas.[11] In 1919, Howard Edward Butt, Florence's youngest son, took over the store upon his return from World War I. Shortly after becoming owner of his mother's small store, Howard tried four expansions into Central Texas, including one in Junction, all of which failed. Finally, in 1927, Howard launched a successful second store in Del Rio, Texas, followed by the purchase of three grocery stores in the Lower Rio Grande Valley. The initials of Howard E. Butt became the name of the store.[12]
Charles, the younger son of Howard E. Butt, became president of H-E-B in 1971. As of 2019, Charles Butt is chairman and CEO of H-E-B, having grown the business from annual sales of $250 million in 1971 to $13 billion in 2006. In 2010, Craig Boyan was named H-E-B's President and COO.[13] By 2018, Martin Otto, the former CFO and Chief Merchant, had become the COO.[14] In 2011, the company was #12[15] H-E-B is the largest privately held company and largest private employer in Texas.[16] H-E-B acquired Favor Delivery as a wholly owned subsidiary in February 2018. The details of the merger were not disclosed.[17]
In 2019, H-E-B is investing millions of dollars to replace cashier stations with self-checkout kiosks or smartphone apps, at the same time that many other supermarkets (such as Walmart, Target, etc.) are shifting towards more self-checkout lane and app usage, and displacing cashiers.[18]
Operations
Headquartered in Downtown San Antonio, H-E-B operates more than 300 stores in over 150 communities across Texas.[19][20] As of late 2010, its operations serve approximately "55-plus" percent of the Texas market, according to Progressive Grocer,[21][22] with primary Texas markets including the Corpus Christi, San Antonio, Austin, Laredo and Houston metro areas. The company does business in five different retail formats: general H-E-B stores, Central Market, H-E-B Plus, Mi Tienda and Joe V's Smart Shop. In 2010, the company announced plans to build 19 new stores in Texas.[23] H-E-B opened its first store outside of Texas in 1996, a 24,000-square-foot (2,200 m2) H-E-B Pantry store in Lake Charles, Louisiana; though the expansion was, in comparison, short-lived and ultimately failed to catch on, either with planners or with the community. The H-E-B Pantry store format was discontinued in 2000,[24] and the company closed its sole Louisiana store in 2003. In 2010, H-E-B offered consumers the opportunity to vote on possible designs for new stores as they expand into new communities.[25]
The company operates several manufacturing facilities in Texas, including one of the largest milk- and bread-processing plants in the Southwest.[26] H-E-B produces many of their own-brand products, including milk, ice cream, bread, snacks, and ready-cooked meats and meals. These and other private-label products are sold under various brands, including "Central Market Naturals", "Central Market Organics", "H-E-B", "H-E-Buddy", "Hill Country Fare", "H-E-B Creamy Creations" ice cream, "H-E-B Mootopia" milk, and "H-E-B Fully Cooked".
Several stores include multi-tenant operations through third-party lease arrangements. Many stores include a bank operation, cellular kiosk and multiple nationally recognized tenants.[27][28][29]
The Austin Business Journal rated H-E-B as the largest private-sector employer in the region in 2017.[30]
In 2019 the company announced plans to build a technology center at its headquarters complex.[31]
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Houston's Buffalo Market H-E-B (#51)
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Central Market store in central Austin
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H-E-B Plus store in Laredo, Texas
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Mi Tienda in northern Houston
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Joe V's Smart Shop in Harris County, Texas
Central Market
In 1994, H-E-B introduced its Central Market concept in Austin. Based in Austin, Central Market offers an organic and international food selection, including a European-style bakery and extensive wine and beer selections. The chain is now composed of ten stores - three in Dallas; two in Austin; and one each in Fort Worth, Houston, Plano, San Antonio, and Southlake.[32] H-E-B operates four different formats of stores that introduce general merchandise and elements of the Central Market concept: The Woodlands Market in The Woodlands in Montgomery County, Kingwood Market in the Kingwood section of Houston, and the Austin-Escarpment store in south Austin. A fourth store opened on March 22, 2008 in West Lake Hills, and in 2009, the H-E-B in Bee Caves was remodeled. H-E-B's Alon Market opened on October 17, 2008 in San Antonio.[33]
In July 2015, the Market concept was expanded as a new Spring Creek Market was opened in southern Montgomery County in Spring, Texas on Rayford Road.[34]
H-E-B Plus!
In 2004, the company launched three (in Austin, Corpus Christi, and Waco) H-E-B Plus! stores with an expanded focus on non-food categories, such as entertainment and other general merchandise. The company added three additional locations in 2005 (Corpus Christi, Round Rock and San Antonio). The stores offered several new departments including Do-It-Yourself and Texas Backyard, and greatly expanded product categories in baby, card and party, cosmetics, entertainment, housewares and toys.
Several other locations were later added, including stores in Flour Bluff, Corpus Christi, Brownsville, Burleson, Bastrop, Beaumont, Belton, Boerne, Katy, Killeen, Cypress, Victoria, Waxahachie, New Braunfels, Kyle,[35] Laredo, Leander,[36] Mission, Rio Grande City, San Juan, San Antonio,[37] Midland, Pearland,[38][39][40] Copperas Cove[41] and Hutto.
Mi Tienda
In 2006, H-E-B opened Mi Tienda in South Houston (adjacent to Pasadena) in Greater Houston - a 63,000-square-foot (5,900 m2) Latino-themed store.[42][43] Another Mi Tienda opened in north Houston in 2011; it is twice the size of the original location,[44] and has 97,000 square feet (9,000 m2) of space.[45] This second location is off of Little York and U.S. Route 59. Mi Tienda, which means "my store" in Spanish, sells Mexican baked goods; a tortilleria, where employees make tortillas; and a carniceria providing marinated cuts of chicken, beef and pork. In addition, Mi Tienda also houses the Cocina restaurant, which serves Mexican food and drinks.[citation needed]
Joe V's Smart Shop
In 2010, H-E-B opened Joe V's Smart Shop, a brand featuring discount items modeled after discount grocer Aldi.[46] The first location opened was a 54,690-square-foot (5,100 m2) store located in northwest unincorporated Harris County, Texas,[47] near northwest Houston. The store format is smaller compared with a full-service H-E-B store but double the size of an H-E-B Pantry store. A larger, second location with a 65,714-square-foot (6,100 m2) space opened in December in northeast unincorporated Harris County, Texas. As of 2016, there are seven Joe V's stores.[48] The "Joe V" name was based on the name of an executive of the company who was involved in the development of this store format.[49]
True Texas BBQ
True Texas BBQ is located inside select H‑E‑B stores.
Mexico
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/79/HEB_in_Piedras_Negras%2C_M%C3%A9xico_%28180%29.jpg/220px-HEB_in_Piedras_Negras%2C_M%C3%A9xico_%28180%29.jpg)
H-E-B crossed the $1 billion mark annual sales mark in Mexico in 2012.[50]
Litigation
In the mid-1980s, local grocery chains Handy Andy and Centeno joined a lawsuit against H-E-B citing unfair pricing practices.[51] H-E-B eventually settled the suit out of court with Centeno in 1998 for $6.5 million and with Handy Andy for an undisclosed settlement amount.[52][53]
H-E-B has paid $12 million to settle a whistleblower lawsuit accusing the San Antonio–based grocery chain of Medicaid fraud. Since at least 2006, according to the suit, H-E-B allegedly submitted to Texas Medicaid inflated prices on thousands of claims for prescriptions it filled so the company could obtain higher reimbursements than allowed.[54]
Charitable activity
The company gives five percent of annual pretax earnings to causes in the areas in which it operates, including education and food banks.[55] The Excellence in Education Awards are an annual charitable program maintained by H-E-B since 2000, in which teachers, administrators and schools in Texas are recognized, with awards totaling $500,000 in contributions in 2009.[56]
H-E-B coordinated donations to relief efforts in the wake of a fertilizer plant fire and explosion in West, Texas. The company donated $50,000 to the American Red Cross and launched a checkstand campaign benefiting the organization to get the community involved in the relief effort. The company said in a news release 100 percent of the donations from the campaign will support the American Red Cross's disaster relief efforts. H-E-B also activated its emergency response units, sending the H-E-B Eddie Garcia Mobile Kitchen and water tanker to West, including donations of meals and water to the victims and first responders.[57]
In the aftermath of Hurricane Harvey in 2017, H-E-B donated $100,000 toward relief efforts. Its campaign drive for customer contributions totaled $1,000,000.[58] In addition, H-E-B's Mobile Kitchen and Disaster Relief Units distributed 10,000 hot meals to volunteers and victims in the affected areas in Texas.[58][59]
References
- ^ Hendricks, David (23 January 2010). "New president is named at H-E-B". San Antonio Express News. Archived from the original on 25 February 2010. Retrieved 12 November 2010.
- ^ "Supermarket News Company Profile: HEB Grocery Company". Supermarket News. Archived from the original on 8 November 2009.
- ^ "HEB TV Spots Reinforce Commitment to Helping Shoppers Save". Progressive Grocer. Stagnito Media. 7 February 2010. Archived from the original on 15 July 2011. Retrieved 14 April 2010.
- ^ "Forbes 400: Charles Butt". Forbes Magazine.
- ^ "HE Butt Grocery on the Forbes America's Largest Private Companies List". Forbes.
- ^ "America's Largest Private Companies". Forbes. Retrieved 5 December 2019.
- ^ Vaughan, Vicki (6 October 2010). "H-E-B is Retailer of the Year". San Antonio Express-News.
- ^ "TOP 75 RETAILERS & WHOLESALERS". Supermarket News.
- ^ Top 100 Retailers Chart 2015 Archived June 10, 2016, at the Wayback Machine National Retail Federation.
- ^ "H-E-B Kicks-off New Year with Renewed Commitment to Customer Savings by Slashing Prices on More Than 5,000 Products" (Press release). Business Wire. 6 January 2010.
- ^ "History Timeline for HEB Grocery". H-E-B.
- ^ Kleiner, Diana J. "H-E-B". The Handbook of Texas Online. Texas State Historical Association. Retrieved 8 November 2010.
- ^ "Craig Boyan to Lead H-E-B as New President and COO" (Press release). San Antonio: Business Wire. 23 January 2010.
- ^ "H-E-B's Martin Otto wins leadership award". APhA. Retrieved 24 May 2018.
- ^ DeCarlo, Scott; Murphy, Andrea D. (16 November 2011). "America's Largest Private Companies". Forbes.
- ^ Fechter, Joshua (12 April 2017). "H-E-B now largest private employer in Texas with 100,000 workers". San Antonio Express-News.
- ^ H‑E‑B and Favor Delivery to Join Forces, H-E-B, retrieved 14 March 2018
- ^ Copeland, Mike, Mike Copeland: Self checkout at H-E-B; Gas prices up; New medical facility on horizon, Waco Tribune-Herald, retrieved 2 May 2019
- ^ "H-E-B appoints new president, reorganizes senior management". San Antonio Business Journal. 25 January 2010. Retrieved 17 December 2010.
- ^ "Find a Store". Retrieved 14 November 2010.
- ^ Major, Meg; Dudlicek, James (October 2010). "Retailer of the Year: The Heart of Texas". Progressive Grocer. Archived from the original on 18 December 2010. Retrieved 17 December 2010.
- ^ Hendricks, David. "New president is named at H-E-B". Retrieved 14 November 2010.[permanent dead link]
- ^ Hendricks, David; Sunday, effective. "New President Named at HEB". Retrieved 14 November 2010.
- ^ Rutledge, Tanya. "H-E-B closing door on pantry concept Archived 21 October 2016 at the Wayback Machine." Houston Business Journal. Friday July 28, 2000. Retrieved on August 25, 2010.
- ^ Kaplan, David (28 October 2010). "H-E-B going extra mile on new Montrose store". Houston Chronicle. Retrieved 14 November 2010.
- ^ "The Largest Private Companies". Forbes.com. 9 November 2006. Retrieved 15 November 2006.
- ^ H-E-B collaborates on new Hawaiian health drink venture, San Antonio Business Journal, December 21, 2006.
- ^ Briefs[permanent dead link], MySA.com, December 23, 2006.
- ^ Austin's first Maui Wowi store opens in HEB Archived March 10, 2007, at the Wayback Machine, Austin Business Journal, February 12, 2007.
- ^ "Dell is no longer Austin's largest employer". www.bizjournals.com. Retrieved 11 January 2018.
- ^ Iszler, Madison (7 August 2019). "H-E-B to hire 500 employees, build new San Antonio tech center". San Antonio Express-News. Retrieved 2 November 2019.
- ^ "Central Market to Bring Argentina to Texas in Celebration of South American Bicentennial" (Press release). BusinessWire. 3 March 2010. Archived from the original on 27 February 2012. Retrieved 11 March 2010.
- ^ Vaughan, Vicki (16 October 2008). "H-E-B Alon Market set to open". San Antonio Express News. Retrieved 12 November 2010.[permanent dead link]
- ^ Spring Creek Market H-E-B Archived February 13, 2016, at the Wayback Machine H-E-B. Retrieved 2 August 2015.
- ^ "H-E-B to start work on Kyle store". Austin American-Statesman. 1 November 2006. Archived from the original on 13 September 2012. Retrieved 2 November 2006.
- ^ Plus to open Friday in Leander Austin American-Statesman, February 22, 2007.
- ^ "Doors opening at second H-E-B Plus". MySA.com. 1 November 2006. Archived from the original on 29 September 2007. Retrieved 2 November 2006.
- ^ Dawson, Jennifer (12 July 2006). "Pearland retail center lands H-E-B as anchor". Houston Business Journal. Retrieved 8 October 2006.
- ^ "H-E-B Plus is coming to the North Side". MySA.com. 8 July 2006. Archived from the original on 29 September 2007. Retrieved 8 October 2006.
- ^ "H-E-B converting North Side store to Plus". MySA.com. 14 March 2007. Archived from the original on 21 March 2007. Retrieved 1 April 2007.
- ^ Audrey Spencer, Herald staff writer. "H-E-B Plus opens in Cove". kdhnews.com. Retrieved 27 March 2018.
- ^ "H-E-B courts Latinos with new Houston store". MySA.com. 5 October 2006. Archived from the original on 17 March 2007. Retrieved 8 October 2006.
- ^ "Vendor E-1.pdf." (Archive) Texas Department of State Health Services. Accessed June 16, 2008.
- ^ Kaplan, David (5 December 2011). "First look at reinvented Mi Tienda". Houston Chronicle. Retrieved 28 June 2017.
- ^ Kaplan, David (5 December 2011). "Second Mi Tienda to be twice as big as first". Houston Chronicle. Retrieved 28 June 2017.
- ^ Kaplan, David. "New H-E-B concept is discount-minded Archived December 21, 2010, at the Wayback Machine."Houston Chronicle. April 20, 2010. Retrieved on May 4, 2010.
- ^ Joe V's Smart Shop. Retrieved on May 4, 2010.
- ^ Joe V’s Smart Shop Opens Store #7 Joe V's Smart Shop. Retrieved 20 July 2016.
- ^ Wollam, Allison (9 May 2010). "H-E-B launches new concept despite naming spat with Trader Joe's". Houston Business Journal. Retrieved 17 December 2010.
- ^ "H-E-B expanding in Texas and crime-ridden Mexico". chron.com. Retrieved 27 March 2018.
- ^ "A Century of Shopping: H-E-B hits 100". MySanAntonio.com. 22 November 2005. Archived from the original on 29 September 2007. Retrieved 15 June 2007.
- ^ "The Paradox of Predatory Pricing" (PDF). Cornell Law Review. 1 November 2005. p. 16. Retrieved 24 June 2019.
- ^ "A Century of Shopping: H-E-B hits 100". MySanAntonio.com. 22 November 2005. Archived from the original on 29 September 2007. Retrieved 15 June 2007.
- ^ "Grocer pays $12 million in whistleblower case".
- ^ Barkhurst, Ariel (20 December 2009). "Thousands enjoy H-E-B Feast of Sharing". San Antonio Express News. San Antonio: Hearst Newspapers. Retrieved 12 March 2010.[permanent dead link]
- ^ Moravec, Eva Ruth (28 March 2009). "H-E-B recognizes 40 Texans vying for education awards". San Antonio Express News. San Antonio: Hearst Newspapers. Archived from the original on 31 March 2009. Retrieved 12 March 2010.
- ^ Riemenschneider, Pamela (22 April 2013). "HEB coordinates donations to West, Texas". The Packer. Vance Publishing. Archived from the original on 26 May 2013. Retrieved 23 April 2013.
- ^ a b Roethler, Eva (30 August 2017). "H-E-B Donations Reach $1 Million and Deploys Response Teams for Harvey Relief Efforts". And Now U Know. Retrieved 9 November 2018.
- ^ "How H-E-B Took Care of its Communities During Harvey". Texas Monthly. 6 September 2017. Retrieved 9 November 2018.
External links
![](http://upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/30px-Commons-logo.svg.png)
- Official website
- H-E-B at YouTube
- Charles Butt & family profile on Forbes
- Charles Butt on Forbes' 2004 List of World's Richest People
- "H-E-B homepage". Archived from the original on April 5, 1997. Retrieved October 30, 2013.
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