Asked what makes H-E-B different from other supermarkets, president Craig Boyan told the Dallas Fed that the company made a decision ‘to serve a state, rather...
The benefits Kroger and Albertsons would gain by combining into a larger company would put more pressure on companies like H-E-B, he said. The companies’ combined revenue would equal $210 billion a year before any required divestitures.
“But we’re obviously investing in local scale,” he said. “And while we’re not nearly as large nationally, we can often find ways to compete locally and have local scale and be as nimble as possible.”and heightened consumer demand collided. Supermarket warehouse operations accustomed to having more than 90% of deliveries on hand were suddenly operating with 50% of items.
H-E-B cut the number of items shipped to each store. Instead of multiple varieties of apples going to one store, for example, it sent an entire pallet of the same kind of apple to a store to keep produce moving and give customers something to buy. When customers were all cooking at home during the pandemic, Boyan said stores were able to keep up with ground beef demand because H-E-B processes a lot of products in its more than 420 stores.
“Ground beef was one of those staples that people were just blowing through,” he said, but shoppers weren’t buying as many roasts. “So our meat cutters were grinding really fancy meats for a while to produce ground beef. It was some of the highest quality we’ve ever sold at H-E-B because we had the capability of some really skilled people in every store making good decisions about how to serve our customers.
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