While H-E-B and Walmart garner a large portion of grocery dollars in the South Texas market, independent grocers play a vital role as well, especially in the large number of smaller towns that dot the landscape.
For chains and independents alike, South Texas has a number of upsides.
Grocery stores provide good, steady jobs in an area that has a large number of farms and ranches, and area workers respond to that. This leads to lower turnover than in some other areas, according to Texas Retailers Association consultant for the grocery industry, Gary Huddleston.
“This reduces costs and gives the grocer stability in their workforce,” he said.
Another plus for South Texas grocers is that inflation is down and fuel costs have dropped, “giving our grocers relief,” he said. “Many of the large distribution centers are in major metropolitan areas like San Antonio, Houston, Dallas. Thus, a reduction in diesel fuel makes a difference in the cost of product.”
Area grocers also get the benefit of increased shopper counts in both summer and winter.
In the summer, vacationers flock to both North and South Padre Island for sport fishing and hunting; in the winter, an influx of RV-ers – snowbirds – coming from northern states add to customer counts.
Produce from local farms means grocers can offer a high level of freshness, too.
“They can buy it right off the field fresh and maybe [offer] different types of produce” than can be found in other areas, he said.
Local stores can function as both grocery store and restaurant, he added. Many have a taqueria inside, serving hot food to pick up business that would typically go to a café or diner.
Lay of the land
Outside of San Antonio, South Texas has four primary regions: Corpus Christi, Brownsville, Harlingen and McAllen.
Each is “strong and growing,” Huddleston said.
Corpus Christi
The Corpus Christi area primarily is served by H-E-B, Walmart and Sprouts Farmers Market, as well as independents.
Off the coast of Corpus Christi, on Mustang Island, a store that’s been in business since 1967 changed hands in May.
Family Center IGA, in the town of Port Aransas, now is owned by Lowe’s Market, which is based in the northwest Texas town of Littlefield. Pay and Save Inc., which operates Lowe’s Market, rebranded the store as Lowe’s Family Center as of May 8, after purchasing the store from the retiring Mike Hall.
“I wanted to sell the store to Lowe’s because they quickly become part of the community and do whatever is needed to meet customer needs,” Hall said. “That is what I want for my friends and neighbors in Port Aransas.”
Alex Buxkemper, COO of Pay and Save, told The Shelby Report, “Our relationship with Mike Hall goes back over 20 years, and we’re honored that he chose us to carry on the Family Center name. We want to continue the great traditions the store established in the community.
“Mike felt we would take care of his employees through a transition because we operate in small-town America and also have stores in resort areas,” Buxkemper added. “We are thrilled to be part of the Port Aransas community.”
The area is a vacation destination, said Huddleston, who managed a Kroger store in Corpus Christi earlier in his career. It is known for its beaches, sport fishing and abundance of wildlife.
The area also has “many ranches raising exceptional cattle,” he added.
Photo: downtowncorpuschristi.com
In downtown Corpus Christi, Community Grocery opened in March, persevering through a 14-month delay, according to the Corpus Christi Caller-Times.
The paper said the store had been initially slated to open in fall 2023, but the death of one of the founders, Bill Hoover, in November 2023, set the project back.
The other owner, Lucas Boyd, now co-owns the store with David Laurel. The store at 317 Peoples St. not only sells grocery items but functions as a restaurant as well, the paper said. Sandwiches and ramen are on the menu, and customers can dine in or get takeout.
Brownsville
Grocery customers in the Brownsville market primarily are served by H-E-B and Walmart stores.
A new choice arrived early this year in the form of Natural Grocers. The Lakewood, Colorado-based organic and natural retailer opened a store in Brownsville on Jan. 22. Located at 515 Morrison Road, it’s the 24th Natural Grocers store in Texas.
Raquel Isely, Natural Grocers VP, said at the time, “Texas has been an important part of the Natural Grocers family since 2008, and Brownsville – one of the fastest-growing communities in the Rio Grande Valley – has long been on our list.”
Valley Grocers is a prominent wholesaler in the area, serving more than 750 customers, according to its website.
And the monthly Rancho Viejo Farmers Market is a popular place to buy organic and locally grown produce and handcrafted goods.
“This market is close to many growing areas and provides excellent local produce,” Huddleston said.
According to the “Visit Brownsville Texas” website, “The success of the market is the result of a collaborative partnership between the City of Rancho Viejo, The Rancho Viejo Farmers Market, The Rancho Viejo Country Club, the vendors and the markets’ customers. Our mutual objective is to continue to increase the availability of high-quality local foods and the customer demand for those foods.”
The market takes place the last Thursday of the month at Rancho Viejo Town Hall. It’s a major event, featuring food vendors, Garden Bistro Café, butterfly garden and an area reserved for approved farmers, ranchers, non-profits and specialty vendors.
A lawn area adjacent to the market features garden flowers, herbs and all other vendors and artisans.
Harlingen
H-E-B and Walmart, again, are the major food retailers in this area, with independents such as El Ahorro also holding share. A Hispanic format, El Ahorro operates several stores in Houston as well as one in San Antonio and one in Victoria.
A&V Lopez Supermarket held a grand reopening of its store in the area, in San Benito, in early June. The celebration of the renovated market featured games for kids, special offers, free food, local vendors and free health exams, according to a post on the grocer’s Facebook page.
McAllen
In this market, H-E-B and Walmart Neighborhood Market are joined by Sprouts Farmers Market as the area’s primary grocery options, according to Huddleston.
Sprouts operates 56 stores in Texas. In addition to its store in McAllen, it has one store in Corpus Christi and four in San Antonio.
This is a major produce growing area, which “provides stores with the opportunity to purchase quite a bit of local produce, thus reducing distribution costs,” Huddleston noted, adding that most of the produce brought in via Mexico is exempt from tariffs covered by the USMCA.
New projects ongoing
San Antonio-based H-E-B is not resting on its laurels in its home market. It continues to add to and refine its store base.
In late April, it announced that it is in the process of doing a “major wall-to-wall remodel and expansion” of its store on Freddy Gonzalez Drive in Edinburg, which opened in 1998.
Every department throughout the store will be expanded, the grocer said, with a finished size of nearly 110,000 square feet. A larger product assortment, refreshed exterior and expanded curbside area with dedicated parking are part of the plans as well.
Renovations are expected to be complete in early 2027.
“At H-E-B, we’re always looking for ways to enhance the shopping experience for our customers, and we ask for patience during the renovation process,” said Reynaldo Garza, the location’s top store leader. “This is a major project that will take some time, but when the work is done, this vibrant community will have a store they can be proud of for many years to come.”
At least three new H-E-Bs are planned for South Texas.
The grocer said last October that it is planning its third store for San Marcos, at Interstate 35 and McCarty Lane. The 114,000-square-foot store will include the city’s first True Texas BBQ restaurant.
“We are always looking for growth opportunities to better serve our customers. This is a project we have had in the works for years, and we look forward to serving even more customers in this growing part of Texas with the best H-E-B has to offer,” said Cathy Harm, SVP-Central Texas Region.
A store in Converse is expected to open in late 2026, according to several local media outlets. And per an April 25 article on MySA, construction continues on a new H-E-B located minutes from the main campus of the University of Texas at San Antonio.
The latter store, located at 7330 N. Loop 1604 in an area that has additional retail and housing going up, will be more than 116,000 square feet, according to the report. It added that UTSA had posted on X about the store, saying, “We’re so excited to have a brand-new HEB planned so close to our main campus. It’s a game-changer for our students, faculty, and staff!”
Walmart made headlines in late April in the southern part of Texas with the opening of its first ground-up supercenter in four years in the Houston suburb of Cypress.
The “Store of the Future,” as Walmart refers to it, is the first step in the Arkansas retail giant’s plan to build or convert more than 150 stores to “future” stores that have “reimagined layouts, expanded services and innovative technology.”
The Cypress store has a Hispanic bakery section, fresh tortilla maker, sushi station and Dunkin’.
“This store was built with the customer in mind. It’s part of a larger transformation happening across our stores as we reimagine what shopping looks like for the future. It shows what’s possible when innovation meets intention,” said John Furner, president and CEO of Walmart U.S.
Walmart’s other plans for Texas this year include two new supercenters in the Dallas area, in Frisco and Melissa, as well as 67 store remodels.
Walmart operates 392 supercenters, 96 Neighborhood Markets, 82 Sam’s Clubs and 18 discount stores in the state.
California-based Trader Joe’s, which currently has three stores in San Antonio, is expected to open a new location in the city next year at Huebner Oaks Center, according to several local reports.
The grocer reportedly will renovate an existing space in the retail center in San Antonio. Projected opening is in 2026.
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