Lynn Petrak
Mar 25, 2023
Chains continue to build new locations in the state, as shoppers buy into the competition
Texas is experiencing a grocery boom, with major retailers and independent grocers expanding their presence across the state. In Dallas-Fort Worth, homegrown chain H-E-B is opening new stores, while Kroger plans to add three larger-format Kroger Marketplace locations, and Costco is investing in a new site. Houston’s grocery scene is also thriving, with Gordon Food Service adding six locations and independent grocers like Little Red Box Grocery opening new stores. Austin, another fast-growing city, is seeing expansion from H-E-B, H Mart, Foxtrot, and Tiny Grocer.
Texans are embracing this growth, with foot traffic to grocery stores up 4.8% in late 2022 compared to pre-pandemic levels, according to Placer.ai. Chains like Trader Joe’s and ALDI are gaining traction. Trader Joe’s visits increased by 18.5% in Q3 2022 and 8.5% in Q4. ALDI, which operates 126 stores in Texas, attracted 400,000 new customers in Dallas and Houston in 2022, thanks to its value-oriented pricing amid inflation.
Karla Waddleton, ALDI’s divisional VP, noted that Texas reflects national trends, with inflation pushing up food prices—10% year-over-year in Dallas and 13% in Houston. Texans’ favorite grocery items vary by region. Dallas customers prefer avocados, strawberries, and whole milk, while Houston shoppers favor chicken breasts, seasonal sweets, and fresh Atlantic salmon, the top seafood item in both regions.
The growth continues with new players entering the market. In April, Dallas City Council approved incentives for Albertsons to add a Tom Thumb store to the area, further fueling the state’s grocery competition and expanding consumer options. With both large chains and smaller grocers thriving, Texas remains a key battleground for the retail food industry. Original article https://progressivegrocer.com/texas-becoming-grocery-hotspot