H-E-B Pantry Foods

H-E-B is a familiar name to just about anyone in Texas. The company operates 4 separate grocery store brands (Central Market, Joe V’s Smart Shop, Mi Tienda, and H-E-B) with locations in 4 out of the 5 largest metroplexes in the state, sorry El Paso. H-E-B even has extensive operations throughout Northeastern and Central Mexico. However, a grandiose expansion was not exactly how H-E-B entered the Houston market. With roots in the Hill Country town of Kerrville, Texas. Initial expansion of H-E-B was slow and limited to small towns around the headquarters. Throughout the 20th century HEB would increase their presence in smaller and rural communities, along with San Antonio. At the time larger cities, like Dallas and Austin faced fierce competition from mostly from huge out-of-state chains. Houston was no exception and by the 1980s are the three most dominant chains in Houston were Kroger, Safeway, and Randall’s.

After braving markets far outside their home territory H-E-B began a slow crawl up the Gulf Coast into Houston, starting slowly from the successful Corpus Christi market. To test the new Houston market a cost saving measure was made to open a few “Pantry Foods” locations in older disused grocery stores. The Houston area had plenty of these thanks to the respective bankruptcies of Safeway/AppleTree. As many of these stores were pushing 30 years old space was limited. As such Pantry Foods banner did not carry as much stock compared to other grocery stores of the time. There were no specialty shops such as a Deli, Bakery, Butcher, or Pharmacy. The variety of items was quite low, shelf space was usually reserved for one name brand item, and one generic. There was little staff outside the managers, stockers, and cashiers, if a product wasn’t out on the shelf to be sold, it wasn’t available. The number of items in the store was also dropped limiting variety. These ideas helped to keep costs down with the end goal of introducing H-E-B to the Houston area, as a serious competitor against chains like Kroger, and Albertsons.

The plan of attack was simple, H-E-B would start from the small towns around Houston abandoned by closing Safeways and use that to build. Throughout the early 90s multiple stores were opened around Houston and in the suburbs surrounding the area. By the mid 90s development had moved within the loop. The stores in the Houston Metro area were generally a bit bigger than their more rural counterparts. Again, this was due to reusing old stores and living with whatever choices that first company had made.

By the end of the decade H-E-B had become an established name in Houston. They were seen as a smaller and somewhat scrappier competitor, but their prices kept customers coming back. In 2000 H-E-B Corporate offices announced that all Pantry Foods locations would be either converted to full H-E-B locations or closed. With the grocery expansion Wal-Mart had undertaken, and the GM expansions many grocery stores undertook, Pantry Foods began to seem a bit quaint. The lack of space and selection began to hurt the company as many shoppers moved to “One-Stop Shop” grocery stores such as, Kroger Signature, Walmart Supercenter, and even Randall’s Flagship. By 2002 the company was closing their final Pantry Foods locations.

For the most part the locations were either replaced by new builds or remodeled and expanded, with only a few closing permanently. At the same time, H-E-B began a huge push into Houston. Many locations which never had Pantry Foods locations gained new H-E-B’s. With many shopping centers orienting themselves around the huge new stores. The Pantry Foods experiment only lasted about 10 years. Some stores did survive, simply dropping the Pantry Foods banner. Some of these locations received small updates, and new products. However, they’re still quite limited compared to most other grocery stores.

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