Why is HEB have cheaper prices? (Houston, San Antonio: home, living in, costs)

[creekstone]

Originally Posted by nana053

The company gives away houses — no, really.
In addition to giving back to the community at large, the company also specifically helps out those who have served. H-E-B has provided homes to dozens of wounded veterans over the last couple of years, made possible by the H-E-B Tournament of Champions golf fundraiser.

True. But understand, the HEB TOC is completely funded by their suppliers. Participation factors into your relationship with HEB (if you know what I mean). There is a suggested "level of participation" based on your annual sales to HEB.

To be fair, many large grocery chains do the same thing. But the perceived generosity of the grocer is at the expense of suppliers (and ultimately consumers).

[creekstone]

Originally Posted by ParaguaneroSwag

Hope DFW eventually gets HEB

HEB has owned real estate in the DFW market for years. But the market is oversaturated with grocers. They have however surrounded DFW proper. I have no doubt they will launch one day. In the meantime, they are doing very well with their Central Market banner (which is mostly independently operated).

[creekstone]

Originally Posted by jfre81

If you really want to save money at the grocery store in Houston, you have to shop at plural grocery stores. You look at all the sales for that week in your neighborhood, and buy what's a good buy at each store. It's a little work, but in doing so you take advantage of a major upshot of living in the Houston area.

Absolutely!

[mojo101]

Originally Posted by ParaguaneroSwag

Now that H-R-B, Kroger and so forth are updating their stores, it makes you wonder how the gourmet grocers like Whole Foods, Central Market and Phoenicia and so forth will do.

they all have their loyal customers,Phoenicia has middle eastern bread,persian cucumber and lamb,Middle Eastern shoppers cant go without.
Some will drive for miles to eat on Saturday-Turkish meat ball !!!!!!
Central Market is the grand version of HEB,with grand prices.
Wholefood I dont shop there,poor selection of fish

[astrohip]

Originally Posted by creekstone

The key word in your question is "some". It's all about perception.

I recently retired from the food industry. I managed Central US grocery sales for a CPG company. In general, grocers make greater profit margins on the "perimeter" (floral, deli, seafood, meat, etc.) than they do on "center store".

The use of multiple tiers of private-label products (PL, "own brand") helps margins considerably in center store. Depending upon the size of the grocer (and category), most of those PL products are produced by a major manufacturer or an acquired producer. And in some cases, those tiers are the exact same product in different packaging.

HEB is a brilliant grocer. They use limited variety and demographic-intense merchandising to really influence your purchase decisions, especially if you don't frequent their competition and see what they are doing. Most grocers offer more variety than HEB. Also, HEB compares notes with Meijer, Wegmans and to a lesser degree, Publix. These are top-tier operators that know what they are doing.

Thanks for a well-written, informative post. It's interesting to hear some behind-the-scenes of something people frequent on a regular basis.

[Mr. Football]

Compared HEB prices in places like Cypress to Austin Lakeway, the grocery prices are much cheaper in Lakeway for the same products. Why are grocery prices higher in the Houston area than they are in Austin?

[C24L]

Originally Posted by Dopo

My guess is the fact that HEB is a Mexican-American company
maybe that gives them some kind of advantage

HEB is not Mexican-American

[WRM20]

Originally Posted by Mr. Football

Compared HEB prices in places like Cypress to Austin Lakeway, the grocery prices are much cheaper in Lakeway for the same products. Why are grocery prices higher in the Houston area than they are in Austin?

People in Houston are willing to pay more?

[mojo101]

Originally Posted by WRM20

People in Houston are willing to pay more?

Austine is more affluent than Houston,Houston has more poor people.
check house price in both cities

[mojo101]

Originally Posted by creekstone

True. But understand, the HEB TOC is completely funded by their suppliers. Participation factors into your relationship with HEB (if you know what I mean). There is a suggested "level of participation" based on your annual sales to HEB.

To be fair, many large grocery chains do the same thing. But the perceived generosity of the grocer is at the expense of suppliers (and ultimately consumers).

----------------
which brings me to CMG Chipotle.
They offer tuition reimbursement to their workers most are college kids making minimum wage and hours are long and demanding,some come back after graduation and join CMG management rank.
I assume we are paying for their education as their prices are higher than their competitors,I know it is integrity and organic ,but still high !