« AOL Latino City Guide | Hispanic Marketing | Business Blog Consulting Companies »
Heb Grocery Survives Walmart
By Mya Frazier (AdAge.com) How HEB Grocery Survives Walmart
Heb Grocery had eight grocery stores serving 57,500 people -- 40% of them Hispanic -- when Wal-Mart came to town in 1994. Within a year, Albertson’s, SuperKmart and two local operators closed, but H.E. Butt Grocery Co., a century-old family-owned supermarket chain with stores in both Texas and Mexico, took on Wal-Mart. H.E.B. battled with price, doubled the size of one store, added fuel services at another and stepped up advertising. Key to Success Story
* Not just Goya, perishables and other Spanish brands. * Hispanic Heritage and Local Patriotism. * Local Store, to Local Shopper by Local Employees. * H.E.B.’s tagline is “Low prices and a passion for quality.” * Test Monterrey, Mexico Promotions in Texas. * 3 Formats: traditional, Hispanic-oriented Fresh & Central Market.
Wal-Mart is still No. 1 - Even so, Wal-Mart has overtaken H.E.B. as the No. 1 grocer in Texas, with 321 stores. H.E.B., an $11 billion retailer, is second with 300 Texas stores and 21 in Mexico, where Wal-Mart is the No. 1 retailer. A new study by NOP World found that Wal-Mart was the most popular choice among U.S. Hispanics asked to name their favorite store. In a February telephone poll of 500 Hispanic adults, 36% called Wal-Mart their favorite store, way ahead of Target, JCPenney and Sears & Roebuck Co., all tied for second place at 4%.
Ahorre April 18, 2005 01:26 PM