Houston continues to be one of the most vibrant, growing areas of Texas.
The Greater Houston Partnership in December released its forecast for job growth in the metro Houston area – 71,200 are projected to be added this year.
If that pans out, Houston would finish the year with more than 3.5 million payroll jobs, setting a record for the region.
The partnership said several factors support this growth, including a steady influx of domestic and foreign companies establishing operations in Houston. A deep backlog of construction projects and local income and population growth also contribute to the positive outlook for job creation.
“Over the past two decades, Houston has experienced several recessions, devastating weather events and the COVID-19 pandemic. But despite these events, the Houston region’s economy has remained competitive,” said Patrick Jankowski, chief economist for the Greater Houston Partnership.
“Houston’s GDP has grown 70 percent after adjusting for inflation, and that growth is proof that our resilient economy will encourage continued growth for years to come.”
Houston is the fourth-largest city in the U.S., with about 7.5 million residents. About 1.1 million of them have arrived over just the last decade.
Gary Huddleston, grocery industry consultant for the Texas Retailers Association, said the Houston metro area is the second-largest population growth center in Texas, trailing only the North Texas area.
He added that the Houston metro area population continues to grow by about 2 percent a year.
“Many families are relocating to the Houston area, especially the outlying areas like Katy, [The] Woodlands, Sugar Land, Tomball, Clear Lake, etc., due to availability of housing and employment,” he said. “Also, families from other parts of the U.S. see the Houston area favorably because of the lack of a state income tax, warmer weather, availability of many outdoor activities and schools.”
The city is looking to keep bringing people in, even if just to visit. In early March, Houston Mayor John Whitmire and Houston First Corp., which operates George R. Brown Convention Center, announced a $2 billion multi-year project that will connect the city’s East End and downtown areas.
The goal is to create “a vibrant, walkable convention and entertainment district unlike anyplace else in the nation,” the announcement said.
The first phase of the project, expected to open in May 2028, includes a 700,000-square-foot expansion of GRB that will provide access to the Toyota Center by way of a new 100,000-square-foot pedestrian plaza.
The Toyota Center is home to the NBA’s Houston Rockets as well as concerts and other events. Also nearby are NRG Stadium, home of the NFL’s Houston Texans, and Daikin Park (formerly Minute Maid Park), home of the MLB’s Houston Astros.
The new GRB Houston South, as phase one is called, will serve as a connection point to future phases of the plan, the announcement said. “The transformation of the GRB will serve as a catalyst for new development, turning underused blocks into a thriving, walkable district, and setting the bar for entertainment-centered development around North America.”
Whitmire added, “This project is truly transformative for downtown Houston, a lasting legacy that will solidify our position as a top-tier convention and entertainment destination. Most importantly, we are creating a space that will build community, foster connection and shape the future of Houston.”
The project is being called one of the largest development projects in Houston in 50 years.
Competitive food store market
As expected in a booming metropolis, the Houston-area grocery market is ultra-competitive.
Huddleston noted that H-E-B, based in San Antonio, has the largest market share in Houston and continues to grow.
“H-E-B growth has a positive impact on the Houston area economy with the addition of jobs, property and inventory tax revenue and the collection of sales taxes,” he said.
Area grocery options also include Kroger, Randalls, Costco, Whole Foods Market, Walmart, Target, Sprouts Farmers Market, Trader Joe’s, Aldi and Amazon home delivery, as well as independent grocers who “fill a need in many neighborhoods,” said Huddleston, adding that independents “differentiate themselves by giving more localized service and convenient locations.”
Because the Houston metro area is so ethnically diverse, mainstream grocers have increased the variety of commodities, tailoring their variety of product to the neighborhoods they serve. But there are also a number of ethnic grocers that cater to the Asian market, including H Mart, 99 Ranch Market and Daido Market (Japanese), and many for the Hispanic market, including La Michoacana, Fiesta Mart, Mi Tienda (H-E-B), El Rancho Supermercado and Sellers Bros.
Huddleston said Houston grocers are striving to meet customers’ needs, whether through home delivery, curbside pickup, fuel centers, pharmacy, all natural/organic products, store brands, self-checkout, digital coupons or other particular needs. In addition, to better handle SNAP/WIC redemptions, grocers have improved technology for better service.
Loyalty programs have grown in popularity; regional fulfillment centers make home delivery very easy, efficient and fast; and delivery fees have come down, he continued.
“The Houston market is a place where grocers are able to try new products, services and technology.”
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Store moves
As Houston continues to grow, grocers continue to open stores. Sometimes they’re new; sometimes they’re replacing another grocer.
Huddleston noted that specialty grocers such as Aldi and Sprouts are planning new locations; Kroger has plans to upgrade a number of stores through remodels; and Walmart continues to expand in the Houston area.
According to local reporting, Sprouts Farmers Market plans to open a store on West Belfort Street in Richmond late this summer. And two more are expected to open next year – one in The Woodlands in a space formerly held by Randalls (4775 W. Panther Creek Drive) and one in the former H-E-B at Kings Crossing Center in Kingwood (4100 Kingwood Drive). These would join the five existing Sprouts in Houston (three), Pearland and Spring.
Trader Joe’s, which has six stores in the Houston area, reportedly has plans to open a location in Kingwood. The California-based grocer will take over a portion of the former Randalls store in Kingwood Commons shopping center, according to local media, citing filings with the Texas Department of Licensing and Regulation. The shopping center is at 600 Kingwood Drive, near where the new Sprouts is planned.
Grocery market leader, San Antonio-based H-E-B, continues to grow in Houston with stores and other facilities.
In addition to about 95 stores, H-E-B operates 10 Joe V’s locations in and around Houston; two Mi Tienda stores in the city and South Houston; and one Central Market at 3815 Westheimer.
To support its operations, H-E-B opened a new e-commerce fulfillment center (eFC) in February.
The 100,000-square-foot, standalone facility supports H-E-B Curbside and Home Delivery orders in Houston and surrounding cities. “Building on H-E-B’s longstanding presence in the area, the move reinforces the retailer’s commitment to serve more customers in this rapidly growing part of the state,” the grocer said.
The eFC stocks the goods found in stores, so employees can pull curbside and home delivery orders there, allowing for more capacity, greater efficiency, less aisle congestion for the in-store shopper and better product availability, H-E-B said.
Through its Spirit of Giving philosophy, H-E-B celebrated the facility’s grand opening by making a $5,000 gift to Energy Institute High School to support its robotics programming.
H-E-B will continue plans to open additional eFCs in Texas to help support the retailer’s expansion throughout the state.
In retail store developments for the company, H-E-B Bridgeland in Cypress opened its doors Oct. 30.
The 128,000-square-foot store is located at Village Green at Bridgeland Central, sitting at 20017 Bridgeland Creek Parkway.
The store is home to the area’s first True Texas BBQ, which serves all-natural meats slow smoked over natural Texas oak, along with sides that include brisket beans, creamed corn and homestyle potato salad. It has a drive-thru for customer convenience.
Other features include a walk-up seafood boil stand – Bayou Boil House by H-E-B – situated at the front of the store and offering peel-and-eat shrimp, boiled crab, boiled and seasoned sausage, potatoes and corn.
“I am thrilled to open my third store in the Cy-Fair community, and I couldn’t be more excited about the enhanced offerings and exceptional service the Bridgeland store will provide,” said GM David Hamilton, a 23-year veteran of H-E-B. “My team and I are proud members of this community, and we look forward to strengthening our ties here while sharing the Spirit of H-E-B.”
In addition to fresh, prepared and packaged food choices inside, the store has a full-service H-E-B fuel station with diesel.
To support its continued growth, last April H-E-B announced a land deal to develop a distribution campus in Hempstead, in the Houston area.
H-E-B bought nearly 500 acres in Waller County, south of U.S. Highway 290 and east of Highway 6. The land will be home to distribution facilities that will be built in phases. The first was expected to get under way in late 2024.
“The land purchase is the first step in the development of this strategically planned campus, a project that will position H-E-B to better serve our customers well into the future,” said H-E-B Chief Supply Chain Officer Carson Landsgard. “The investment demonstrates H-E-B’s commitment to communities across Texas and will give us the opportunity to create more jobs in the Hempstead area in the coming years.”
The Houston Chronicle reported March 12 that H-E-B is expanding north to Montgomery, with plans for a store near Lake Conroe. Construction could begin late this year at FM 2854 and Highway 105 West, with the new 127,000-plus-square-foot store possibly opening in summer 2026, the newspaper said, adding that the grocer also is expected to open a new Joe V’s Smart Shop, a value-driven format, at I-45 and West Road by mid-summer.
In other news…
The Houston Historic Retail website is reporting the demise of a couple of area grocery stores.
According to a March 4 post, the Food Town at 9520 Jones Road in Houston was shuttered around March 1. The store reportedly was impacted by “intense competition” from H-E-B and Kroger stores across the street and a nearby Aldi. The post noted this is the third Food Town to close in the past year; the Webster store closed in January, while the West Belt store closed in March 2024.
A March 7 article said a Kroger store in The Woodlands will close by May 6. The store “has been the anchor of the Sterling Ridge Shopping Center since it opened in December 2000,” the post said. An H-E-B is across the street, and the Trader Joe’s that opened in 2012 is on the opposite corner.
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