HEB Superstore Situational analysis

SITUATIONAL ANALYSIS The H.E.Butt (H-E-B) Company operates in one of the oldest and most competitive businesses in the United States. The grocery industry includes over 31,500 supermarkets and generates over $365.4 billion annual sales, in which 64% of stores are affiliated with a chain, gaining 80% of industry revenues. Competition has become increasingly fierce with the creation of national-scale chain mergers, international grocery firms enetering the market, and the expansion of Wal-Mart into food retailing. Nonetheless efficient …

…households, averaging $700,000 to $1 million in sales per week. H-E-B Pantry Foods are smaller stores that offer limited assortment and operate with a low cost, low price format. These stores mainly target the lower-income market. H-E-B Central Markets offer a wide variety of premium products and elaborate displays, targeting 'food enthusiasts' from the higher-income segments. Lastly, H-E-B offers a wide assortment in its stores in Mexico, serving a wide range of income groups in that area.