USA – Texas-based grocer, H-E-B has announced the launch of its eighth e-commerce fulfilment center at a time when other grocers are closing e-commerce facilities.
In a press statement, H-E-B highlighted that the new facility would enhance capacity and efficiency, improving product availability and reducing aisle congestion.
The center, covering over 55,000 square feet, will employ more than 200 full-time employees, the company revealed.
This e-commerce fulfillment center is connected to the recently opened store in Cibolo, Texas, and will support curbside pickup and home delivery services in the greater San Antonio area.
This marks H-E-B’s eighth e-commerce facility since opening the first one in 2018. The largest facility, spanning 100,000 square feet, was opened in 2023.
H-E-B’s e-commerce expansion strategy contrasts with the current trend among other grocers. For example, Kroger recently announced plans to close its e-commerce delivery facilities in Texas and Florida by March 2024 after failing to meet success criteria.
Similarly, Giant Foods announced the closure of three e-commerce facilities in October 2023. The inhibited success of these initiatives is attributed to the strong presence of competitors like Walmart, which holds a significant market share in these regions.
While e-commerce demand surged during the COVID-19 pandemic, it declined for less established players from 2022 as more people returned to in-store shopping.
Consequently, only well-established players have managed to adapt to the changing customer patterns. E-commerce sales have moderated, leading smaller online grocers like Ahold Delhaize to scale back their expansion efforts.
These companies plan to focus on other aspects of their operations, indicating that expansion will resume only once customer dynamics improve.
Giant Foods, Kroger, and other players have emphasized the need for grocers to rethink their e-commerce strategies to meet delivery needs.
Jon Arons, Giant Foods’ spokesperson, stated, “Our ambition at Giant is to meet the changing needs of our delivery customers, who are increasingly looking for faster delivery, more delivery time slots, and a broader assortment. We are adapting our operating structure to better meet these needs.”
Instead of waiting for market indicators, H-E-B is proactively developing its e-commerce infrastructure. According to the press release, H-E-B plans to open similar facilities across the US, continuing its aggressive expansion in e-commerce.
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