H-E-B to Add Two Joe V's Smart Shop Stores

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August 23, 2011

H-E-B is rapidly expanding in Texas, acquiring locations in San Antonio and two stores set to open in Houston under its largely store brands concept, Joe V's Smart Shop.

The relatively new banner sells a variety of store brands positioned to an extreme value shopper. It's a no-frills, warehouse style concept that features its own private label products under the EconoMax name and parent company H-E-B's Hill Country Fare. There's a selection of grocery and general merchandise items and stores are more like Aldi than Trader Joe's.

Joe V's Smart Shop serves lower income shoppers and the stores in Houston are being positioned to serve ‘food deserts,’ populated areas that lack access to fresh and healthy food, and are often located in low-income urban areas. Retailers are busily touting the problem of ‘food deserts’ as reasons to expand in cities were community and union opposition to chain stores is strong.

H-E-B will open two locations in the Acres Homes area of Houston, joining two other locations in the city, doubling its total store base to four units. Additionally, H-E-B has acquired property in downtown San Antonio, reportedly to expand its corporate headquarters, although unidentified sources told the San Antonio Express-News it will house a 10,000- to 12,000—square-foot grocery store with a gas station. 

H-E-B has been growing its stable of store concepts including a super center format called H-E-B Plus that sells seasonal, home goods and general merchandise, akin to a mass market discount chain, but on a smaller scale. The company's Central Market appeals to an upscale gourmet and inspires loyalty along the lines of Trader Joes and Whole Foods, another Texas based grocery chain.

Joe V's Smart Shop brings this same sourcing and merchandising skill to a different demographic. The formats -- H-E-B, H-E-B Pantry, H-E-B Plus, Central Market and Joes V's Smart Shop -- together serve a broad spectrum of demographics in a manner coveted by other retail giants including Walmart.

According to the Houston Press, Walmart has a 23 percent market share in Houston, the largest of any chain while H-E-B commands a 50 percent share in San Antonio and a 60 percent share in Austin, home to Whole Foods. The new Joe V's Smart Shop stores are set to open in November.

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