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(DFW) - H.E. Butt Grocery Co. (H-E-B) is setting its sights on the Dallas-Fort Worth Metroplex.
The first step in the expansion has already started. In August, H-E-B began construction on a 450,000-sf distribution center in Temple, Texas. The facility will house stock for stores in Austin and Dallas.
H-E-B brought its Central Market concept to the area several years ago. To date, the company has planted four Central Market flags in the area — in Dallas, Plano, Fort Worth and Southlake.
There is a reason why so many grocers have gravitated to the area. At stake is a population of 6.6 million people spread out among 12 counties in North Texas, notes Ian Pierce, real estate analyst for Dallas-based firms Cencor Realty Services and The Weitzman Group.
“The DFW area is widely considered to have the most competitive grocery market in Texas, and one of the most competitive in the country,” he adds.
According to the November 2009 edition of trade publication The Shelby Report, which breaks down market share numbers for the greater Dallas area, Kroger is presently the No. 2 grocer, with 15.68 percent of the DFW market. Coming in at No. 3 and No. 4 were Tom Thumb and Albertsons, with market shares 10.43 percent and 8.8 percent, respectively.
Walmart holds sway over 34.42 percent of the greater Dallas grocery market.
This past October, H-E-B took the No. 19 spot on Forbes magazine’s list of America’s Largest Private Companies, with revenue of $15.2 billion and 71,000 employees company-wide.
[San Antonio Business Journal]
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