retail news in context, analysis with attitude

Business Insider has a piece about how "H-E-B tightened its grip on the San Antonio area’s $8 billion grocery market last year as the coronavirus pandemic continued changing shopping habits.

"With 57 stores and about $4.2 billion in sales, the San Antonio-based company claimed 52.4 percent of the local market in 2021 … That’s up from 51 percent in 2020, when H-E-B’s slice of the market had dipped from 52.1 percent in 2019. The company regained that share last year, but its slice of the pie is still down from 56.1 percent in 2018."

The story notes that this is all without building any new stores.

But … Business Insider also points out that H-E-B is about to get new competition, as Kroger "plans to build a 'spoke facility' on the Northeast Side to store groceries and other items for delivery, which will work with a fulfillment center in Dallas.

"Kroger anticipates delivery service will be up and running by the end of this year. The company shuttered its 15 local stores in 1993 over a labor dispute and left the market."

KC's View:

I have no idea how much of a dent, if any, Kroger can put into H-E-B's market share.

But I would point out that there is another 40+ percent that may be in play, and if Kroger can carve off just a little of that, this could be a successful experiment.