'We don't need to go poke that bear': Grocery chain won't expand into H-E-B's Texas territory
https://www.mysanantonio.com/news/lo...e-16736123.php
Iowa-based grocery chain Hy-Vee is currently charting an expansion into the Southern states, however, its CEO revealed the chain will be steering clear of Texas, according to the Des Moines Register.
In a statement to employees in a company video, executive Randy Edeker explained that while the company is expanding south for the first time since 2009, they'll be avoiding planting roots in the Lone Star State due to H-E-B's regional dominance.
"They’re [H-E-B] a phenomenal competitor," Edeker said. "There are lots of weak competitors out there that we just don’t need to go poke that bear, so we won’t."
The San Antonio-based grocery giant overwhelmingly holds Texans' loyalties, and boasts 340 locations across the state. Reasonably, the "phenomenal competitor" isn't the grocery chain Hy-Vee wants to go up against. Instead, the Des Moines company will vie for customers in Kroger-dominated states like Indiana, Tennessee, Alabama, and Kentucky.
Beginning in 2023, Hy-Vee plans to open doors at 20 new stores over four years. The chain did not immediately respond to MySA's inquiries about future expansion.
Hy-Vee employs 84,000 and generated $12 billion in sales at the fiscal end of 2020, according to Supermarket News' annual report.
Kroger, which is based in Cincinnati, reportedly accumulated $132.5 billion in sales at the end of 2020, across stores in 35 states, the report also shows.
A secondary competitor for the Iowa-chain will be Publix, a Florida-based company with1,294 stores in seven states that made $44.86 billion at the end of 2020, according to Supermarket News.
Outside of Texas, H-E-B only has stores in Mexico, but within the state, it hardly has any major competitors. According to market research company Metro Market Studies and the San Antonio Business Journal, Walmart continues to be H-E-B's top competitor in the state.