What Makes Texas "Texas": H-E-B Puts the SUPER in Supermarket

by Linda Thornton

It’s a little-known fact that, though H-E-B stands for Howard E. Butt, it was Howard’s mother, Florence Butt, who opened the first H-E-B location.

In 1905, Florence moved her husband and three sons from Tennessee to Texas, hoping the drier weather might help her husband’s tuberculosis. A year later, with her husband still unable to work, she obtained a $60 loan and established Mrs. C. C. Butt’s Staple and Fancy Grocery Store, a one-room store on the ground floor of her family’s Kerrville home.

A ONE-ROOM MARKET TO A MARKET WITH ROOM FOR GROWTH

In 1919, Howard E. Butt, Florence's youngest son, took over the business, with a strategy to eliminate the middlemen and maximize profits.

 The credit-and-deliver policies of the time were replaced with a new self-service cash-and-carry model.

 Specializing in low-priced goods saw the company through the Great Depression and they were able to offer employees perks like picnics and group life insurance.

 During World War II, their canning company also produced food for the Armed Forces.

 By the 1950s, in-store fish markets, butcher shops, drugstores, frozen foods, and bakeries were introduced to stores.

 In 1971, Howard’s son, Charles, took over and added in-store pharmacies, photo processing, video rentals, a florist, and the sale of wine and beer.

 In 1985, the company headquarters moved to a renovated army arsenal in San Antonio.

Today, Howard Butt, III serves as CEO of H-E-B, with his uncle, Charles Butt, as chairman, and his brother, Stephen Butt, as president. By staying “Texas true” and resisting the urge to expand beyond state lines, H-E-B has built a unique competitive edge— seamlessly blending Texas traditions with cutting-edge technology. This approach has earned the company top honors from dunnhumby, a leading customer data analytics firm, which has named H-E-B America’s top grocery retailer four times since 2017.

According to Forbes, with more than 445 stores, 160,000 employees, and $42.5 billion in sales, it is the fifth largest privately held U.S. company.

STORE TRAFFIC JAM

H-E-B also operates under five brand names that cater to different markets.

CENTRAL MARKET: In 1994, H-E-B introduced this upscale market offering organic and international foods. The concept has since expanded to include merchandise under the names Woodland Market, Kingwood Market, Alon Market, and Spring Creek Market.

H-E-B PLUS! STORES: With an expanded focus on non-food categories, these general merchandise stores were launched in 2004.

MI TIENDA: Spanish for “my store,” these Latin-themed stores have provided shoppers with a traditional Mexican grocery experience since 2006.

Named after the company executive who brought the concept to fruition, this low-cost grocery chain opened in 2010.

H-E-B MEXICO: Since opening their first Mexican store in 1997, business has grown to more than $1 billion in sales.

IT’S NOT JUST A STORE, IT’S AN EXPERIENCE, NO “BUTTS” ABOUT IT!

Texas pride runs deep at H-E-B, and it’s evident in everything from their marketing to the tortillas made fresh in-house—widely considered the best grocery store tortillas in the country and now the stuff of legend among loyal shoppers. But H-E-B’s celebration of all things Texas goes far beyond food.

The company is a proud supporter of local brands and small businesses, with initiatives like the annual Quest for Texas Best competition—a statewide showcase that helps entrepreneurs bring their products to store shelves. Their supplier diversity team also offers hands-on training and guidance to help business owners thrive. Even H-EB’s private label brands are thoughtfully developed to compete with national names, offering quality products that are appealing, not just affordable.

A family-owned company rooted in Christian values, H-E-B is also generous, donating five percent of annual

pre-tax earnings to support causes across the state. Consistently ranked among the best places to work, the company fosters a culture of loyalty, professionalism, and outstanding customer service—reflected in thousands of long-term employees.

H-E-B: “HERE, EVERYTHING IS BETTER” – AND BIGGER!

At 182,000 square feet, the San Antonio H-E-B Plus! is the chain’s largest. The supercenter, known for wide aisles, boasts electronics, home goods, boutiques and even restaurants.

In 2023, a new H-E-B opened in Georgetown, replacing its smaller 34-year-old predecessor. The 121,000-sq-ft location, in the Wolf Lakes Village shopping center, offers more selection, a merchandise shop, and a two-story BBQ restaurant.