History of H-E-B in Timeline
H-E-B Grocery Company, LP is a privately held supermarket chain based in San Antonio, Texas, with over 380 stores across Texas and Mexico. Known for its upscale Central Market brand and commitment to customer experience, H-E-B is a major player in the grocery industry. With 2022 revenues of $38.9 billion, it consistently ranks among the largest private companies and top retailers in the U.S. H-E-B is also recognized for its philanthropic efforts, donating 5% of pretax profits to charity. Its mascot, H-E-Buddy, is a familiar symbol of the brand.
November 26, 1905: Founding of C.C. Butt Grocery Store
On November 26, 1905, Florence Butt established the C.C. Butt Grocery Store in Kerrville, Texas, marking the beginning of what would become H-E-B.
1919: Howard Edward Butt Takes Ownership
Following his service in World War I, Howard Edward Butt, the youngest son of Florence Butt, assumed ownership of the C.C. Butt Grocery Store in 1919.
1927: Expansion into Del Rio and the Lower Rio Grande Valley
In 1927, Howard Edward Butt successfully launched a second store in Del Rio, Texas. He further expanded the business by acquiring three grocery stores in the Lower Rio Grande Valley.
1971: Charles Butt's Presidency and Growth
Charles Butt, the younger son of Howard E. Butt, became president of H-E-B in 1971. Under his leadership, the company experienced significant growth, with annual sales increasing from $250 million in 1971 to $13 billion in 2006.
1994: Introduction of the Central Market Concept
In 1994, H-E-B introduced its innovative Central Market concept in Austin, Texas.
1996: Expansion into Louisiana with H-E-B Pantry
In 1996, H-E-B ventured outside of Texas by opening a 24,000-square-foot H-E-B Pantry store in Lake Charles, Louisiana. This marked the company's first store outside its home state. However, the expansion proved unsuccessful.
1997: Expansion into Mexico
H-E-B expanded its operations internationally in 1997 by opening its first store in Monterrey, Mexico. This marked the company's entry into the Mexican market.
1998: Settlement of Lawsuit Regarding Unfair Pricing Practices
In 1998, H-E-B reached settlements in a lawsuit filed by local grocery chains Handy Andy and Centeno, who had accused the company of engaging in unfair pricing practices. The settlement with Centeno amounted to $6.5 million, while the terms of the settlement with Handy Andy were not disclosed.
2000: Establishment of the Excellence in Education Awards
H-E-B established the Excellence in Education Awards, an annual charitable program, in 2000 to recognize and support educators, administrators, and schools in Texas.
2000: Discontinuation of the H-E-B Pantry Format
H-E-B decided to discontinue its H-E-B Pantry store format in 2000.
2003: Closure of Louisiana Store
H-E-B permanently closed its only store in Louisiana in 2003, marking the end of its brief foray into the Louisiana market.
2004: Launch of H-E-B Plus! Stores
H-E-B launched three H-E-B Plus! stores in 2004, located in Austin, Corpus Christi, and Waco. These stores featured an expanded selection of nonfood items, such as entertainment and general merchandise.
2005: Expansion of H-E-B Plus! Stores and New Departments
H-E-B continued to expand its H-E-B Plus! concept in 2005 by adding three more locations in Corpus Christi, Round Rock, and San Antonio. The stores introduced new departments, including Do-It-Yourself and Texas Backyard, and significantly expanded their product offerings in various categories, such as baby products, cards and party supplies, cosmetics, entertainment, housewares, and toys.
2006: H-E-B Reaches $13 Billion in Annual Sales
By 2006, H-E-B's annual sales had reached an impressive $13 billion, reflecting the company's continued expansion and success under Charles Butt's leadership.
2006: Settlement of Medicaid Fraud Lawsuit
H-E-B agreed to a $12 million settlement in a whistleblower lawsuit alleging that the company had committed Medicaid fraud. The lawsuit claimed that, starting no later than 2006, H-E-B had been submitting inflated prices for prescriptions to Texas Medicaid to receive higher reimbursements than permitted.
2006: Opening of the First Mi Tienda Store
H-E-B opened its inaugural Mi Tienda store in South Houston in 2006. This 63,000-square-foot store, situated near Pasadena in the greater Houston area, embraced a Latino theme and catered to the local Hispanic community.
October 17, 2008: Opening of H-E-B's Alon Market
H-E-B inaugurated its Alon Market in San Antonio on October 17, 2008, further expanding its presence in the city.
2009: Excellence in Education Awards Contributions Total $500,000
In 2009, H-E-B's Excellence in Education Awards program reached a total of $500,000 in contributions, highlighting the company's significant support for education in Texas.
2010: Retailer of the Year Award
H-E-B was honored as the "Retailer of the Year" by Progressive Grocer in 2010, a testament to their excellence in the grocery industry.
2010: Craig Boyan Appointed President and COO
Craig Boyan assumed the roles of president and COO of H-E-B in 2010.
2010: Launch of Joe V's Smart Shop
H-E-B introduced its Joe V's Smart Shop concept in 2010. This low-cost grocery chain aimed to provide customers with affordable grocery options by offering discounted items.
2010: Expansion Plans, Market Presence, and Retail Formats
By late 2010, H-E-B operated over 300 stores in more than 150 Texas communities, serving over 55% of the Texas market. The company had a strong presence in major metro areas, including Corpus Christi, San Antonio, Austin, Laredo, and Houston. H-E-B operated various retail formats: general H-E-B stores, Central Market, H-E-B Plus, Mi Tienda, and Joe V's Smart Shop. In 2010, the company revealed plans to establish 19 new stores in Texas. Additionally, H-E-B introduced a new initiative allowing customers to participate in the design selection process for new stores as part of their community expansion strategy.
2011: Opening of the Second Mi Tienda Store
H-E-B expanded its Mi Tienda concept in 2011 with the opening of a second, larger location in north Houston. Situated off Little York and Interstate 69/U.S. Route 59, the 97,000-square-foot store provided an even wider selection of Latino-themed products and services.
2011: Forbes Ranking and Recognition as Largest Private Employer in Texas
H-E-B secured the 12th position on Forbes' list of "America's Largest Private Companies" in 2011. The company solidified its status as the largest privately held company and the biggest private employer in Texas.
2012: H-E-B Mexico Surpasses $1 Billion in Annual Sales
H-E-B's Mexican operations achieved a significant milestone in 2012 by surpassing $1 billion in annual sales, demonstrating the success of the company's expansion into the country.
July 2015: Expansion of the Market Concept with Spring Creek Market
H-E-B further expanded its Market concept in July 2015 with the opening of the Spring Creek Market in southern Montgomery County, Spring, Texas, located on Rayford Road.
2017: Hurricane Harvey Relief Efforts
In the wake of Hurricane Harvey in 2017, H-E-B demonstrated its commitment to supporting communities in need. The company donated $100,000 to relief efforts and organized a customer contribution drive that raised $1,000,000. H-E-B also deployed its Mobile Kitchen and Disaster Relief Units to distribute 10,000 hot meals to volunteers and victims in the affected areas of Texas.
2017: Recognition as Largest Private-Sector Employer in Austin
The Austin Business Journal recognized H-E-B as the largest private-sector employer in the Austin region in 2017.
February 2018: Acquisition of Favor Delivery
H-E-B acquired Favor Delivery in February 2018, making it a wholly-owned subsidiary. The financial specifics of the merger were not publicly disclosed.
2018: Martin Otto Becomes COO
In 2018, Martin Otto, previously the CFO and chief merchant, transitioned to the position of COO at H-E-B.
2019: Charles Butt's Continued Leadership
As of 2019, Charles Butt held the positions of chairman and CEO of H-E-B.
2019: Top Retailer Ranking and Charitable Contributions
Based on 2019 revenues, H-E-B was ranked as the 19th-largest retailer in the United States. The company continued its commitment to giving back by donating 5% of its pretax profits to charitable causes.
2019: Technology Center Development Announcement
H-E-B unveiled plans to construct a technology center at its headquarters complex in 2019, signaling its commitment to technological advancement.
2019: Investment in Self-Checkout Technology
In 2019, H-E-B made significant investments to incorporate self-checkout kiosks and smartphone app-based checkout options, reflecting a broader trend in the retail industry towards self-service technologies.
May 24, 2022: Donation after Robb Elementary School shooting
On May 24, 2022, following the tragic Robb Elementary School shooting in Uvalde, Texas, where 19 children and two teachers lost their lives, H-E-B and the Butt family pledged $10 million as founding donors for constructing a new school. This initiative also involved initial participation from Texas architectural firm Huckabee and general contractor Joeris General Contractors.
2022: Forbes Recognition and Revenue
In 2022, H-E-B achieved a total revenue of US$38.9 billion and secured the 6th position on Forbes' list of "America's Largest Private Companies".
June 2024: Expansion of Joe V's Smart Shop
As of June 2024, H-E-B's Joe V's Smart Shop had expanded to 10 stores in Houston and 1 store in Dallas, with a 12th location slated to open in Dallas in 2025. This low-cost grocery chain focuses on providing discounted items to budget-conscious shoppers.
2024: Customer Experience All-Stars Recognition
H-E-B earned the 3rd spot on Forbes' 2024 list of "Customer Experience All-Stars", highlighting their dedication to customer satisfaction.
2025: Planned Opening of a Twelfth Joe V's Smart Shop in Dallas
H-E-B has plans to further expand its Joe V's Smart Shop presence by opening a 12th location in Dallas in 2025.