SEP 2024

H-E-B: Leading the Charge in Grocery Innovation with Technology and Community Focus

H-E-B, the iconic Texas-based grocery chain, has cemented its place as a leader in the U.S. grocery industry by blending technological innovation with an unwavering commitment to customer service. As a company with over 435 stores across Texas and Mexico, H-E-B is more than just a grocery store—it is a community fixture, deeply connected to the neighborhoods it serves. Known for its customer-first approach, the company is continually expanding its footprint while pushing the boundaries of retail technology and personalized shopping experiences.

H-E-B’s digital transformation journey has been nothing short of remarkable. In 2018, the company acquired Favor Delivery, an on-demand delivery service operating in over 400 cities across Texas. This acquisition has allowed H-E-B to offer same-day delivery of not only groceries but also restaurant meals, household items, and alcohol, positioning itself as a leader in convenience. Recently, the company launched H-E-B Now, an exclusive grocery delivery feature within the Favor app that promises to deliver up to 15 items in under 45 minutes without delivery fees for orders over $25 until the year’s end. Favor’s integration with H-E-B showcases the company’s commitment to using technology to enhance customer convenience.


In addition to the Favor app, H-E-B offers a seamless online shopping experience through its My H-E-B app, which supports both curbside pickup and home delivery. With over 270 stores across Texas offering these services, H-E-B has outperformed its competitors in customer satisfaction. According to the 2023 Ipsos Ecommerce Experience Report, H-E-B’s curbside pickup and delivery services scored higher than the industry average in both communication and likelihood of repeat use, demonstrating the company’s strong digital capabilities.


While other grocery chains are pulling back on e-commerce facilities, H-E-B is doubling down. In 2023, the company opened its eighth e-commerce fulfillment facility, designed to support its growing curbside and delivery services. These fulfillment centers increase H-E-B’s capacity to handle online orders efficiently, reduce aisle congestion for in-store customers, and improve product availability. As the demand for online shopping continues to rise, H-E-B is positioned to capitalize on this trend with plans to open additional fulfillment centers across the state.


Unlike competitors like Kroger and Giant Food, which have scaled back e-commerce operations, H-E-B’s strategic investments demonstrate its confidence in the long-term growth of online grocery sales. This forward-thinking approach ensures that H-E-B can continue to provide a superior omnichannel experience, whether customers choose to shop online or in-store.

Our mission is simple: to take care of the communities we serve by offering fresh, high-quality products at the best possible prices, all while delivering an unmatched customer experience.

— Charles Butt, Chairman, H-E-B

Omnichannel Fulfillment and E-commerce Facilities

Digital Transformation and E-commerce Expansion

What truly sets H-E-B apart from national chains like Walmart and Kroger is its deep connection to the communities it serves. From San Antonio to Austin, H-E-B stores are designed to reflect the local culture and history. For instance, the company recently opened a store in Austin that pays tribute to a famous music venue and an old bakery, blending local history with modern retail.


H-E-B’s commitment to localization extends to its retail formats. The company operates five different retail brands, each catering to distinct customer demographics. From the upscale Central Market to the discount-focused Joe V’s Smart Shop, H-E-B has diversified its offerings to meet the unique needs of Texas communities. Joe V’s Smart Shop, in particular, has gained attention for its innovative pricing model, which focuses on offering fresh, high-quality products at unbeatable prices by using cost-saving operational strategies.


H-E-B’s relentless focus on the customer experience is evident in its technology investments. The company has rolled out cashier-monitoring software to reduce shrinkage, as well as electronic article surveillance (EAS) systems to prevent theft. These initiatives have helped H-E-B reduce operational losses and improve productivity. Additionally, the company’s use of technology extends to its produce departments, where advanced product identification systems ensure that cashiers accurately price items.


In terms of enhancing the shopping experience, H-E-B has outpaced competitors with its innovative features. The company’s H-E-B Now feature in the Favor app provides customers with near-instant grocery delivery, while the My H-E-B app offers personalized promotions and digital coupons that make shopping more convenient and affordable.

A Localized Approach to Retail Excellence

Technology-Driven Customer Experience

H-E-B’s leadership extends beyond technology and retail—it is a champion for community support and sustainability. The company’s Hunger Relief Program, which began in 1982, has donated over one billion pounds of food to 5,500 nonprofit organizations across Texas and Mexico. In 2023 alone, the program donated 33 million pounds of food to families in need, reinforcing H-E-B’s commitment to fighting hunger. Chairman Charles Butt also made a personal $20 million donation to support 20 food banks across Texas, underscoring the company’s dedication to addressing food insecurity.


In addition to its hunger relief efforts, H-E-B has taken a proactive stance on sustainability. The company has rebranded its convenience stores as Fresh Bites, emphasizing fresh food over fuel, and continues to explore ways to reduce its environmental footprint. H-E-B’s approach to sustainability is rooted in its belief that providing high-quality, responsibly sourced products is not just a business strategy but a moral imperative.


H-E-B’s dedication to customer satisfaction and innovation has not gone unnoticed. In 2024, the company topped the seventh annual Dunnhumby Retailer Preference Index (RPI), ranking as the top grocery chain in the U.S. The RPI recognized H-E-B’s ability to deliver both value and a superior shopping experience, with time-saving digital capabilities playing a key role in the company’s success. As H-E-B continues to evolve, its focus on customer value and technological innovation will undoubtedly keep it at the forefront of the grocery industry.

H-E-B’s rise to the top of the U.S. grocery market is a testament to its forward-thinking leadership, community engagement, and commitment to innovation. From its localized store formats to its cutting-edge e-commerce capabilities, H-E-B has successfully blended tradition with technology to create an unparalleled customer experience. As the company expands its footprint and deepens its digital offerings, it will continue to set the standard for grocery retail in Texas and beyond.

Leading with Community and Sustainability

Topping the Retailer Preference Index

Conclusion