2022 H-E-B Southwest IOY

The Shelby Report of the Southwest congratulates

2022 Southwest Innovator of the Year

12

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year

Flagship banner stores expand into Dallas-Fort Worth Metroplex

Twenty years of service celebrated

Central Markets have taken on vibe of their communities

Two H-E-B stores opened this fall, with more planned for area H-E-B is The Shelby Report of the Southwest’s 2022 Innovator of the Year. The Texas-based independent retailer just recently moved into the Dallas-Fort Worth Metroplex, opening in Frisco on Sept. 21 and Plano on Nov. 2.

As the retailer’s flagship banner, H-E-B stores join the network of six Central Market locations that have been serving shoppers in the DFW area for more than 20 years.

The plan to enter the DFW Metroplex has been years in the making, according to Roxanne Orsak, H-E-B Chief Operating Officer.

“We’re Texans serving Texans, and we have wanted to service the DFW market for nearly 25 years,” she said. “Growing up in the company, I remember talking about one day we’ll get to DFW.” As a multi-format retailer, H-E-B serves many different types of customers “in a very unique way,” Orsak said. “We’re proud of our Central Market division that has served the DFW Metroplex for over 20 years.”

Central Market is a specialty gourmet retailer. Most locations have a full-service kitchen, offer cooking and wine classes in their culinary schools, and have catering services.

As H-E-B has grown and studied the market, additional opportunities for the H-E-B brand became clearer. “With the Frisco and Plano stores open, the

Central Market recently celebrated 20 years in Dallas and Plano with special events to mark the occasion. The Plano store opened in February 2002 and Dallas-Lovers Lane opened four months later in June.

According to the company, both stores have adopted their own personal vibe, teaching daily cooking classes with local and celebrity chefs, hosting special seasonal in-store events, and supporting local schools and nonprofits.

company will continue to expand its other formats and maintain its push as a multi-format retailer in the DFW market,” Orsak said.

H-E-B has been a multi-format retailer for close to 30 years. In addition to H-E-B and Central Market stores, other formats include Mi Tienda and Joe V’s Smart Shop.

In Houston, Mi Tienda stores celebrate Latino food culture, Orsak said. The Joe V’s Smart Shop brand, which launched in Houston 12 years ago, is the company’s price format banner, “where we bring the absolute highest-quality fresh products at the absolute lowest price,” Orsak said.

She added that H-E-B is methodical about where it locates stores and the timing of new locations. Each store is tailored to the uniqueness of the nearby neighborhoods and surrounding community, Orsak said.

The company’s architects and designers are “worldclass Partners (employees) who study the market and Please see page 14

About this section Interviews for the Southwest Innovator of the Year were conducted by Shelby’s Jack Jordan and Jan Meade, with the articles compiled by Treva Bennett.

Central Market held an anniversary ribboncutting ceremony with cake Nov. 2 at the Plano store. The grocer also offered free food and drinks Nov. 3. On Nov. 4, it held a tasting stroll throughout the store with celebrity chef Cat Cora, during which each participant received an etched anniversary glass, store coupons and canvas bag.

The Dallas-Lovers Lane store hosted a similar ceremony Nov. 2. Two days later, its free tasting event featured Texas chefs Robert Del Grande, Dean Fearing, and Stephan Pyles. Guests also received the glass, coupon, and bag.

“Dallas and Plano have always been sophisticated foodie communities with their own culture and notable food destinations,” said Stephen Butt, H-E-B Board Member and President of Central Market. “We were fortunate to be immediately embraced by lifelong H-E-B customers, new customers, chefs, and the entire foodie community when we opened our doors 20 years ago.

“Since 1994, when Central Market first opened its doors in Austin, it has been our goal to help customers enjoy living through a more fun, informed relationship with food – regardless of where they are on their food journey. We credit the success of our stores to the Partners, who are some of the best in the industry, and to our incredible customers, who we’ve joined on their food journey for the past 20 years.”

Since 2002, Central Market estimates it has given more than $30 million to local nonprofits including schools, food banks, museums and cultural organizations, military families, local police and fire departments, as well as disaster relief services in the area.

Some beneficiaries of Central Market’s donations and in-kind gifts in these two communities include North Texas Food Bank, Texas Scottish Rite Hospital for Children, Plano ISD Education Foundation, Dallas ISD Teacher of the Year, Incarnation House, Dallas Symphony Association Young Strings, Minnie’s Food Pantry, United to Learn, City House Inc., and many others.

“Central Market has consistently been a catalyst for food innovation, and we are driven by the genuine, shared love of great food that reflects the character and flavors of the many diverse neighborhoods we serve across Texas,” Butt said.

“We look forward to continuing to serve the Plano and Dallas communities for many years to come.”

14

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year

From page 12

design stores relevant to the area.” The company also spends time visiting with customers, local business partners, and community leaders – all types of stakeholders – to gain a better understanding of how it can best serve customers.

“We want to bring Texas our absolute best,” Orsak said. H-E-B has an ongoing real estate plan for the Metroplex, with plans to grow beyond the Frisco and Plano locations.

Juan-Carlos Rück, H-E-B Executive VP of North West Food Drug, said H-E-B’s long-term plans are to continue to grow in the Metroplex with not just the H-E-B flagship brand but with its other formats as well.

H-E-B stores are under construction in Allen and McKinney, while ground was broken just recently in Alliance, which will be the first H-E-B store in Tarrant County (Fort Worth). An H-E-B location in Mansfield has also been announced, with groundbreaking planned for early next year.

Rück said the new locations will give residents an opportunity to join the H-E-B team and become Partners, “which is pretty exciting.”

The San Antonio-based company entered the Houston market about 30 years ago and has opened several stores there. It took “a lot of time to study Houston, and we wanted to make sure we got it right,” Orsak said. “We feel really good about our operations in Houston.”

With H-E-B’s plans underway for its expansion in the DFW area, Orsak said H-E-B wants to make sure it has the Partners needed for the new locations.

“Our partners are the key to our success. Before we enter or expand in any market, we make sure we have the best training and development for our Partners – and identify strong leaders to take great care of our customers and community,” she said.

ERE

VERYTHING’S

ETTER

THE SHELBY REPORT OF THE SOUTHWEST • DECEMBER 2022

15

Committed to Texas Founded in 1905 and built on a $60 investment, H-E-B began as a small family grocery store in the Hill Country town of Kerrville, Texas. Today, H-E-B is one of the nation’s largest independently owned food retailers dedicated to exceptional customer service, low prices, top quality products, and convenient shopping options such as curbside pickup and home delivery.

More than a retailer, H-E-B is deeply committed to its customers beyond stores, through public service in the more than 300 communities it serves.

Known as the H-E-B Spirit of Giving, the tradition can be traced to the company’s earliest days when H-E-B founder Florence Butt and her youngest son, Howard, took food baskets to the homeless that lived along the banks of the Guadalupe River.

The company’s Spirit of Giving remains steadfast and is a key part of everyday business at H-E-B. Each year, H-E-B donates 5 percent of pre-tax annual earnings to charitable organizations focused on education, hunger relief, health and wellness, military, environmental sustainability, and diversity and inclusion initiatives.

At H-E-B, each person counts. Regularly named a top employer and retailer, H-E-B’s more than 154,000 Partners (employees), most of who are owners in the company, are at the heart of what makes the business successful.

With a humility rooted in its Helping Here philosophy, H-E-B’s Partners serve all Texans with open arms and a smile and demonstrate its collective commitment to take care of Texas.

Headquartered in San Antonio, H-E-B has annual sales exceeding $38 billion and more than 430 stores throughout Texas and Mexico.

16

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year

Design plans for locations focus on local communities Inviting, inspirational art greets shoppers, enhances stores’ identities When H-E-B decides to locate a new store, one of its key focuses is on the local community. Input from residents is important in the overall design and another reason the grocer is The Shelby Report of the Southwest’s Innovator of the Year.

In terms of design elements, H-E-B continues to focus on sustainability and being environmentally friendly. This includes waste diversion efforts such as recycling and composting, energy efficient practices, and landscaping with native plants to help reduce water consumption.

We will continue to evolve those design elements as we grow and learn what works well in specific communities,” said Roxanne Orsak, H-E-B Chief Operating Officer.

The sustainability elements are also being incorporated into remodeling projects at stores, warehouses, and other supply chain facilities, said Juan-Carlos Rück, H-E-B Executive VP of North West Food Drug.

In addition, H-E-B includes art installations at its stores. According to Winell Herron, H-E-B Group VP of Public Affairs, Diversity and Environmental Affairs, the company has been a longtime supporter of the arts.

She said the company has partnered with local artists to create a unique shopping

experience at many stores across the state, resulting in “a very special and tailored sense of place that complements the local community.”

At the site of the new Frisco H-E-B, there are eight different art installations featured in a community greenspace next to the store, which includes metal sculptures of fruit. Another example is a bench built using a series of mosaic tiles painted

by H-E-B Partners and community members such as teachers, fire fighters and community leaders.

“Art is fun, unique, and inspirational. It allows us to connect with the local community,” Herron said.

She added that not every store has an art installation, but many do. At four H-E-B stores in Houston, the company worked with local artists to reinforce its commitment to the arts and to “highlight some of the talented artists across the state.”

“It differentiates our stores from others, but more importantly it’s an opportunity to create a unique sense of place and highlight fabulous local Texas artists,” Herron said.

Please see page 20

20

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year

From page 16

H-E-B has commissioned art installations at a number of its stores for over 20 years. At a store in Wimberley that was built on the site of a closed school, Orsak said H-E-B took part of the basketball court flooring and incorporated the pieces into the store décor.

“When customers come to shop, they see parts of their old school at the store,” she said, noting that includes the old scoreboard and some of the bleachers.

Orsak reiterated that local approach. “Again, it all goes back to being part of the community and creating a sense of place that is really important to us and our customers,” she said.

When designing stores, H-E-B’s design team learns what is important to surrounding neighborhoods to create stores that reflect what is important to customers and local communities. They will eat at local restaurants and often engage with customers and community leaders.

“Our designers have the talent and freedom to create what they believe best reflects the culture of H-E-B and the communities we serve. Their artistic ability shines in every project.”

Rück added that he’s had the “unique experience” of spending time with H-E-B’s designers, day, and night, seeing the same location in the morning and evening.

“That’s when I realized that designers are always looking everywhere except straight ahead of them.”

While Rück was walking and looking forward, he said “their heads are on swivels and they’re seeing things that I would have never seen…they are artists.”

Herron agreed that H-E-B has “incredibly talented and creative Partners” who understand the company’s vision. She cited as an example a Partner who designed a bike rack in the form of a carrot for the

Frisco location.

“We were discussing a simple bike rack for residents biking to the store from Frisco neighborhoods, and the designer created a really cool work of art,” she said.

ERE

VERYTHING’S

ETTER

THE SHELBY REPORT OF THE SOUTHWEST • DECEMBER 2022

21

Own Brands portfolio continues to expand Additions include barbecue restaurant, home décor lines H-E-B is proud to be a Texas company and its family of brands reflects that pride.

In addition to its H-E-B brand products, other Own Brands include H-E-B Select Ingredients, H-E-B Organics, H-E-B Meal Simple, Field and Future by H-E-B, Mi Tienda, Hill Country Fare, Central Market, H-E-B Kitchen & Table, H-E-B Responsibly Raised, H-E-B Wild Caught, and H-E-B Texas Roots to name a few.

Customers will also find Home by H-E-B brands Haven + Key and Texas Proud, along with True Texas Barbecue restaurants, in many H-E-B stores.

Scott Mitchell, Chief Merchant for the company, said H-E-B’s Own Brand portfolio is designed to bring its customers “unique and distinctive items.”

That approach is a further illustration of why the retailer is The Shelby Report of the Southwest’s

Innovator of the Year.

“True Texas Barbecue has been fun,” he said, adding that the company also operates different food concepts.

Mitchell noted that True Texas Barbecue has been named the best barbecue chain in the state by Texas Monthly. He said it’s not only an option for dining in, but also for catering.

Home by H-E-B, a new concept for the company, debuted this year and is available in select stores, according to Mitchell. Both Haven + Key and Texas Proud are home décor collections, offering hundreds of items for different rooms in the home. These include textiles, décor, furniture, and accent pieces.

“The primary difference is that Haven + Key is more of a modern décor line, whereas Texas Proud is

Please see page 22

“Quite a bit of our sales come from parties and special events. Weddings are a big deal for us under the True Texas Barbecue brand, which is very exciting.”

He said it is really about the H-E-B Partners. We have smokers in all our True Texas BBQ restaurants and one of the key positions is the pitmaster, who is preparing those products daily and ensuring H-E-B gives its customers “the exact same experience across all locations,” Mitchell said. There are more than 20 locations across the state, with more planned for the future.

22

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year

From page 21

Community involvement stamped in grocer’s DNA ‘Secret sauce’ is how Partners volunteer time, energy and effort

designed to bring the best of Texas home accents to our customers,” Mitchell said.

“We’re excited and will be rolling it out to more stores this year.”

H-E-B continues to look at different ways to diversify its offerings and provide customers with unique items.

“This is part of our total Own Brands approach to offer customers what we call unique and distinctive items,” said Mitchell, adding that Texas Proud and Haven + Key is another way of doing that.

Community is of great importance to H-E-B. In fact, it’s in the company DNA to “give back and to make our communities better,” according to Winell Herron, Group VP of Public Affairs, Diversity and Environmental Affairs.

“As passionate, committed and excited as we are about what we offer inside the four walls of our stores – great customer service, great products, and great prices – we’re equally as passionate about how we show up and make a difference in the community,” Herron said.

The significance of community to the company got its start with founder Florence Butt, who in the early 1900s served food baskets along the banks of the Guadalupe River, Herron said.

“Giving back is truly part of who we are and what we’re about as a company.”

H-E-B is committed to many charitable causes including hunger relief and is the largest supporter of food banks in Texas.

“It starts at the top of our organization,” Herron said.

Other areas of philanthropic focus include education, the environment, diversity and inclusion and the military. H-E-B also shows up when there’s a disaster, she said, whether that’s a natural disaster such as a hurricane or a tragedy like the Uvalde school shooting.

“When Texans are in need, they can count on H-E-B to do everything we can to help the community regain a sense of normalcy,” Herron said. “It truly is in our DNA.” “H-E-B’s secret sauce is how our Partners volunteer their time, energy and effort to make their communities better,” Herron Roxanne Orsak, H-E-B Chief Operating Officer, said she had the opportunity to be on the front lines following Hurricane Harvey.

“It’s remarkable to me that Partners from across the state of Texas got in their trucks with a barbecue pit, ice chest, sleeping bags and fellow Partners – and off to Houston and the Gulf Coast they went,” she said. “They showed up and they didn’t need to be invited. Our Please see page 24

24

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

From page 22

Partners always show up.”

Orsak said they don’t leave until everyone is taken care of. H-E-B’s Partners in the affected areas who were safe invited other Partners into their homes. “It’s a phenomenal experience to watch and be a part of our Partners taking care of our customers.

It’s remarkable to see how amazing our Partners are.”

2022 Southwest Innovator of the Year

ERE

VERYTHING’S

ETTER

THE SHELBY REPORT OF THE SOUTHWEST • DECEMBER 2022

25

Partners key to company’s success ‘Award is for them,’ recognizes hard work People matter at H-E-B. They are at the heart of every decision made and everything the company does. And its Partners (employees) are an integral part of H-E-B’s success.

In addition to the stores, H-E-B Partners work in many other locations and serve in many roles. Its Partners are the secret to the company’s success, said Juan-Carlos Rück, H-E-B Executive VP of North West Food Drug.

“The purpose that our Partners have, the people that they are…we love them,” he said. “We know that they’re special and that they really are the difference.”

Rück noted that more than 85 percent of the Partners in the Frisco and Plano stores were new to H-E-B, but through the onboarding process and getting to know the store leadership, a store culture was created.

“That’s where the saying ‘My H-E-B’ comes from.

When we do our job right, people don’t say, ‘I’m going to the store’ or ‘I’m going to the grocery store,’ they’ll say, ‘I’m going to my H-E-B.’ They literally feel possessive about their H-E-B. And that is primarily a testament to our Partners,” Rück said.

To further cultivate a local culture at its stores, H-E-B becomes familiar with the community and studies what products make customers feel like the store was designed with them in mind.

All of that comes together, and that’s what makes shopping at H-E-B a unique experience for our customers,” Rück said.

“Each and every day, we are focused on earning their loyalty and their business, and our Partners do a great job of that.”

Scott Mitchell, Chief Merchant for the company, said the Partners are the reason H-E-B is being named The Shelby Report of the Southwest’s Innovator of the Year. “It’s truly all about our Partners,” he said, noting that at the bottom of the company’s “bold promise” it states that each and every person counts.

“We’re certainly proud of the products that we sell, we’re proud of the stores and the design.

We’re proud of all those things,” Mitchell said.

“But none of that happens without our Partners.

“Everything that our customers experience, it all comes down to the work that our Partners do.”

26

DECEMBER 2022 • THE SHELBY REPORT OF THE SOUTHWEST

2022 Southwest Innovator of the Year