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Grande Output

How business in this Texas valley is booming despite setbacks
MS_Grande Output

Inspired by the Valley’s economic growth, powerhouse chains have taken notice. San Antonio-based H-E-B, with 332 stores in Texas and 56 in Mexico, is now the largest privately held employer in the state. It also has 32 stores across the Valley, with some in every county.

Retail juggernaut Walmart boasts more than 20 regional locations in different formats. Neither Whole Foods Market nor Trader Joe’s has yet to make the trek, however, natural foods retailer Sprouts Farmers Market made an appearance, but has only one location so far, in McAllen.

Independents, small grocers, and club stores
This part of South Texas doesn’t rely solely on national supermarket chains for its shopping.

Independent stores like Ruben’s Grocery, which has been in the same McAllen location for 43 years, continues to cater to the area’s largely Hispanic population.

The same is true for local chains like A & V Lopez Supermarket, which has six locations throughout the lower Valley, and Junior’s Supermarket, which boasts eight stores. Houston-based chain La Michoacana has a small empire with 144 stores across Texas and Oklahoma, with eight locations in the Valley.

And then there are members-only club stores like Costco Wholesale. Thanks to an $11 million incentive from the city of Pharr, the country’s largest membership warehouse club opened there in 2012. So far, it remains the only Costco location in the Valley. Sam’s Club, in the meantime, has four locations across the area from Brownsville to Edinburg.

Competition, selling strategies, and differentiation
The retail bonanza also requires differentiation for stores to survive, so there’s plenty of seasonal sales, special promotions, and social media interaction, as well as perks like online ordering, in-store cafés, and an abundance of prepared foods.

A recent arrival is Instacart, which began operating in the Valley in June of last year. Shoppers can place orders with local supermarkets online or through a mobile app, and Instacart will deliver it within two hours or at a scheduled time.

Already available in 40 markets across the United States, Instacart joined the Valley due to existing partnerships with Costco and H-E-B.

Challenges
Weather and Otherwise
Everyone knows weather can be a challenge in the produce industry, and 2017 brought a bit of everything, with Texas getting more than its share. Even so, few could predict the arrival and impact of Hurricane Harvey, which affected businesses throughout the Rio Grande Valley in myriad ways.

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