Randalls just went 100% discount - Watch out H-E-B..... (Houston, Dallas: organic, tax)

[inthecut]

Originally Posted by + or -

Honestly, although I don't like supporting monopolies (even though HEB only controls about 60% of the grocer market, it's still a monopoly), I have to admit HEB's price to quality ratio is quite high.

The produce is fresh, the meats and fish always right, and the packaged goods neatly organized and fairly priced. I cannot justify the price premium of Central Market, Whole Foods, or Randall's for regular shopping visits.

Of course, if I was making a half a million a year, perhaps, but I find HEB more than adequate.

Per HEB's "monopoly", we had a huge post about just that about 6 months ago.....the consensus was that it functions as such, de facto, though it is not literally one because it did not buy out all its competition...the competition just fell by the wayside, and HEB was there for decades before they got huge...they didn't come outside from nowhere like Wal-Mart and destroy prior local retail sectors, as they were local themselves (San Antonio)......

They do a very good job, the prices are great, the choices are more than sufficient for a large, one-size-fits-all grocery, and the kids are very sweet and friendly at the checkout....

So the consensus is, HEB has 60% of the market simply because they are BETTER than everyone else, AND ambitious enough to build out a bunch of stores all of the metro....

I guess I'm just saying "good for them".....

[davi78239]

so do you think HEB will ever expand nationally?? I know my wife worked at HEB forever when she was younger and people visiting from up north or other parts of the country would go and absolutely love it say that they wish they had them where they were. I honestly don't ever see it happening because I think that's what makes them powerful (the whole local, regional thing). If they were to do that, the costs would be higher and then they might lose track of other things that make them so great right now.

[Trainwreck20]

Main reason HEB will not go national - they expand with cash instead of debt, which makes wholesale exansion very unlikely. As long as they stay near to their production centers, they can expand, but if they had to build a whole new series of production bases, it would be almost impossible w/o taking on debt. Corpus,San Antonio, and Houston all have facilities (tortillaria, bakeries, produce packing, milk/ice cream production, etc), so they have an effective limit on how far they can reach from those areas.

[orbius]

Once its Walmart and HEB only in Austin these companies will call a truce rather than continue being cutthroat on prices IMO. Which will mean higher grocery prices for customers IMO.

[davi78239]

Originally Posted by orbius

Once its Walmart and HEB only in Austin these companies will call a truce rather than continue being cutthroat on prices IMO. Which will mean higher grocery prices for customers IMO.

you really think it will come to just HEB and Walmart?? That's how it is here in San Antonio since Albertson's left back in 02. We've never had any part of Safeway. But we use to have Kroger's back when. Did Austin ever have Kroeger's??

[XLadylawX]

Originally Posted by FueledByBlueBell

Is this your perfect supermarket in theory or are there examples of stores that you are comparing your experience to? I'm curious as I've lived in a few places and might have been missing something.

Just another California transplant. Grocery Stores I like are:

Bel Air, Raleys, Nugget Market, and Nob Hill Foods. Baggers always use paper unless you ask for plastic, they insist upon taking your groceries to the car and the cashier inspects all the food items to ensure no damage or breakage. Also, if for example you are shopping for tomato sauce, there are no less than 6 brand names on the shelf to choose from. And best of all: USDA Choice meat. Both HEB and Randall's have their own store brands of meat and when you try to pin down the butchers on what USDA rating the meat is they always fall back on "our meat is guaranteed blah blah blah."

Raleys is consistently rated one of the top FULL SERVICE grocery stores in the nation .

Drawback: prices. A lot of people would balk at the prices but after 2 or 3 shopping trips you will embrace the darkside because of the quality.

[mark311]

Originally Posted by davi78239

you really think it will come to just HEB and Walmart?? That's how it is here in San Antonio since Albertson's left back in 02. We've never had any part of Safeway. But we use to have Kroger's back when. Did Austin ever have Kroeger's??

Super Target will still be here too. I like to mix it up and go to Target instead of HEB every other week or so. They have two house brands there. One is a cheap lower quality brand "market pantry" and the other is a good quality gourmet type brand "Archer Farms". The Archer Farms stuff is great.

[orbius]

Ever try that Archer Farms french bread that you heat up in your oven? Wow that is good. Sorry for the digression. HEB for some reason. never had good baguettes and for some reason jacked the price of them up to a ridiculous $3 at my HEB.

[Jennibc]

Originally Posted by orbius

Once its Walmart and HEB only in Austin these companies will call a truce rather than continue being cutthroat on prices IMO. Which will mean higher grocery prices for customers IMO.

By truce do you mean price fixing? Because that would violate antitrust laws.

[inthecut]

Originally Posted by davi78239

so do you think HEB will ever expand nationally?? I know my wife worked at HEB forever when she was younger and people visiting from up north or other parts of the country would go and absolutely love it say that they wish they had them where they were. I honestly don't ever see it happening because I think that's what makes them powerful (the whole local, regional thing). If they were to do that, the costs would be higher and then they might lose track of other things that make them so great right now.

Texas is big on regionalisms, so I can absolutely say it will never become Safeways/Albertsons......they are good BECAUSE they are just regional, and never watered down the concepts/service....Texas is largely a regional state anyway, for several reasons....Only state with its own electrical grid, unconnected to any other states, while ironically providing the nation with gas ala refineries and wells themselves.....Isolated themselves in a bottom middle of the nation, they make their own fun/regionalisms, and are unique because of the same....Texas has not been "watered-down" per its overriding uniqueness/regionalisms till the very recent discovery of the same by the rest of the nation.....

Get back to me in 10-20 years to see if Texas loses its personality, and becomes part of the rest of bland america....I'm holding out that it never will, personally......