H-E-B breaks into one of the most expensive DFW submarkets

The grocery has picked up 20 acres in Prosper, one of the most exclusive DFW submarkets for developers

H-E-B CEO Charles Butt (H-E-B, Colby Nate, CC BY 2.0 via Wikimedia Commons)
H-E-B CEO Charles Butt (H-E-B, Colby Nate, CC BY 2.0 via Wikimedia Commons)

H-E-B has made a bold move into North Texas.

The San Antonio-based supermarket chain just picked up nearly 20 acres of property in Prosper, about 30 miles north of Dallas, the Star-Telegram reports. The lot, on the southeast corner of Dallas North Tollway and Frontier Parkway, is less than 2 miles from a Kroger. Though big enough for a grocery store, H-E-B has not confirmed its plan for the space.

H-E-B has $34 billion in annual sales and is the largest food retailer and private employer in Texas. But for Texans, H-E-B is more than just a grocery chain, “it’s an experience,” says Mashed writer and Texas native Korey Lane. The San Antonio Current once called it the “Cultiest Cult Grocer in America.”

Despite its success, the brand stays defiantly local. The only H-E-B locations outside the Lone Star State are in Mexico.

H-E-B’s current growth strategy is now focused on the Dallas-Fort Worth metroplex. The H-E-B Grocery Company has more than 420 stores across Texas and Mexico with two more underway in Allen and McKinney set to open next Summer. In April, the company opened a New Braunfels location that features a two-story True Texas BBQ restaurant.

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The latest location, Prosper, is a northern submarket of Dallas that straddles Collin and Denton county lines. South of Celina and North of Frisco along the North Dallas Tollway, the small town sets itself apart from its neighbors with its exclusivity.

The town’s median household income is close to $141,000, making Prosper the most affluent community in Collin County per capita. Unlike many of the other suburbs surrounding it, Prosper is highly selective when it comes to development projects. Not to mention, land in Prosper is one of the most expensive in the region.

“We do want to set ourselves apart — there’s nothing wrong with that,” Economic Development Director Mary Ann Moon told Bisnow in January. “We don’t have our arms open to everybody and everything.”

H-E-B may be a good fit with Prosper’s economic development plans that focus on “mom-and-pop” businesses. The company tailors each store’s product offerings specific to its local area, according to the Telegram. So unlike competitors like Walmart, no two H-E-B stores are the same.

— Maddy Sperling