H-E-B to convert former Albertson's,
expand other area stores
Stores in West Lake Hills, Round Rock and Northwest
Austin will become H-E-B.
AMERICAN-STATESMAN STAFF
Thursday, September 13, 2007
H-E-B will put its name on three Albertson's grocery stores in Central Texas. The region's dominant grocery chain plans to remodel the stores, adding new departments and services and up to 150 jobs.
In early November, San Antonio-based H. E. Butt Grocery Co. will begin renovating the stores, on Gattis School Road in Round Rock, in West Lake Hills and on Research Boulevard and Spicewood Springs road in Northwest Austin.
The biggest changes will come to the West Lake Hills store, which will be gutted and reopened with a sushi bar, an area for cooking demonstrations and a Central Market Cafe on the Run, which offers prepared meals to go.
The moves are part of H-E-B's long-term plan to keep pace with Central Texas' rapid growth, Jeff Thomas, senior vice president and general manager of the chain's Central Texas region, said Wednesday.
With the new stores, H-E-B will have 45 stores in Central Texas, about 8,000 employees and an annual payroll of about $250 million.
H-E-B bought two other closed Albertson's and does not plan to reopen them, saying they are too close to existing H-E-Bs. The former Albertson's on Pleasant Valley Road will be used as a staging area while H-E-B builds a store with more than 120,000 square feet behind its existing store across the street on East Riverside Drive.
The company sees the closed Albertson's near the Y in Oak Hill as a real estate investment.
H-E-B is planning to expand or upgrade other stores in high-growth areas, including on Texas 71 in the Village of Bee Cave and at RM 620 and RM 2222.
H-E-B expects to be able to offer jobs to many of the 350 Albertson's employees and plans to hire another 100 to 150 people to staff the three converted stores.
H-E-B has set up a job line for applicants at (512) 421-1019.
Store-closing sales that will begin next week will end Albertson's presence in Central Texas.
The company has been gradually pulling out of the region in the past two years, as its market share shrank amid intensifying competition. In 2006, Albertson's was sold to a group of buyers and closed two-thirds of its area stores. Two more were closed earlier this year.
H-E-B is buying the last open stores. Other closed stores remain on the market. Thomas said H-E-B has been in discussions with Albertson's for about a year on the deal.
In Central Texas, H-E-B has about 60 percent of the grocery market, followed by Wal-Mart Stores Inc. with 23 percent and Randalls with 7 percent.