H-E-B has stores in Texas cities big and small. Why not in El Paso?

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H-E-B has stores in Texas cities big and small. Why not in El Paso?
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San Antonio-based H-E-B operates more than 430 stores in Texas and Mexico but has not expanded to El Paso, one of Texas' largest cities.

H-E-B has stores in towns as small as Carthage and Crockett, a pair of East Texas locales with fewer than 15,000 residents — combined. So why hasn’t the San Antonio-based grocer expanded to El Paso, the state’s sixth-largest metro area? “We’re very confused,” said Bonny Tallmon, an El Paso resident who started a Facebook page called “Bring HEB to El Paso” in 2013. The company has been growing rapidly elsewhere.

New H-E-B stores coming to Austin, Pflugerville and Manor “While don’t have any immediate expansion plans for El Paso, we’re always looking for opportunities to serve more Texans and communities across the state,” a spokesperson for H-E-B said. The company declined to make an executive available to discuss why it’s been bypassing El Paso, which has a population of about 675,000 and another 200,000 or so residents in the surrounding area.

planning to build another store on San Antonio’s far West Side as area growth continues Geography could play a role, too. El Paso is fairly isolated, making it more expensive for grocers to transport goods and restock shelves. It’s not near any of the major markets where H-E-B has stores, manufacturing facilities for products and warehouses for keeping goods.

plans to build a store near UTSA’s main campus The company’s distribution model is another factor, said Bobby Gibbs, a Dallas-based partner at consulting firm Oliver Wyman. Some opt to self-distribute, which means they build distribution centers, hire workers for them and manage the logistics involved in getting products from factories to stores. Others use third-party wholesalers such as C&S Wholesale Grocers LLC, UNFI and Associated Wholesale Grocers Inc., or a mix of both options.

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