Three months ago, I moved to Katy (near Houston), Texas. What I enjoy the most is getting to know local businesses. Major national brands, one way or another, are already a part of my knowledge because they are always in the media, studies, or from past experiences in various cities across the United States.
In the short time I’ve been here and already settled into the local routine, I was recommended by native Texans to explore H-E-B, a supermarket chain headquartered in San Antonio. Up until then, I had been shopping at Kroger, Target, and Walmart, which are the closest and most well-known options.
After visiting an H-E-B location nearby, I was genuinely surprised. I can now understand why local residents are such fans of this brand. Upon digging a bit deeper into the brand, I discovered some interesting facts:
- Founded in 1905, it’s one of the oldest markets in the U.S.
- Has over 400 stores in Texas and Mexico.
- Has an upscale brand, Central Market (I visited one of their stores in Dallas in 2010 but wasn’t aware of the connection to H-E-B).
- Operates two stores called Mi Tienda, catering to the Latino market with a focus on Mexican products.
- Runs 10 stores under the name Joe V’s Smart Shop, focusing on value.
- It’s the largest private company in Texas, employing 145,000 people.
- Has over $38 billion in revenue.
- It’s a family-owned business.
Despite these impressive statistics, what caught my attention about the brand are the careful product selection and presentation, combined with the convenience of the shopping journey.
If we were to create a checklist for what a successful grocery retailer should have, they certainly exceed the average.
What’s the twist
- Efficient curbside operation, where you order online, and they deliver to your car in designated parking spots.
- Delivery services.
- A focus on local brands.
- High quality Private labels across various categories, representing 30% of total sales.
- Real local marketing and sales strategies – Texas Proud.
- Fresh produce section with great options for organics and convenient, ready-to-eat products.
- High-quality, affordable, and diverse ready-made healthy meals, similar to takeout you can bake at home in 10 minutes.
- Super fresh bakery and pastry products, aesthetically fantastic, and with flavors that seem to have come straight from a boulangerie/patisserie.
- A Wellness platform offering various services like a pharmacy, dietary programs, medical consultations, and physiotherapy.
- An expanded and diverse pet section.
- A recipe channel with videos.
- Catering services for events, including customization of cakes, dishes, and floral arrangements.
- A service hub covering domestic cleaning, pet care, gardening, bill payments, and money transfers.
Observing how a local brand, with operations only within one state, except for a few stores in Mexico, manages to offer an extensive range of services is fantastic. It’s no wonder they’re successful with the impressive numbers mentioned above. Companies that understand the importance of connecting with and building customer loyalty beyond just products are contemporary and daring. What’s incredible is that many still don’t realize this.
In summary, what we as consumers want are brands that solve our daily problems. I coined the term “MacGyver Brands” (if you’re under 40, Google to find out who’s this guy) years ago to exemplify the new challenge of deeply understanding who buys and providing practical solutions to their needs. There’s no secret to it, just a lot of planning, hard work, resilience, and measurement.
