H-E-B announces plans for first store in Dallas

H-E-B, the Texas-based grocery chain known for its customer-first shopping experience, Texas pride and wide selection of store-brand favorites, has announced plans to open a store in Dallas.

While the San Antonio-based grocer has already opened stores in McKinney and Frisco, the new location would be the first HEB format store inside Dallas city lines.

What we know:

The company recently purchased a 10-acre property at the southeast corner of Hillcrest Road and LBJ Freeway in North Dallas.

The new HEB Market store under construction on Buffalo Speedway near Bissonet Friday, June 26, 2009, in Houston.(Photo by James Nielsen/Houston Chronicle via Getty Images) STOREFRONT

However, it's not a done deal. The grocer says it plans to work closely with neighbors and city officials because the site does need to be rezoned.

What they're saying:

"While we have a lot of work to do, we look forward to connecting with our neighbors, the city, and community stakeholders to ensure we create a destination that best supports this community," said Mabrie Jackson, public affairs managing director for H-E-B and Central Market.

"This is the first step in a long process, and we hope to share more details with our neighbors soon," she added.

Big picture view:

As H-E-B has made its expansion into North Texas, it's brought a cult-like following. People have lined up for hours in hopes of being one of the store's first shoppers.

The Dallas store will join other H-E-B locations in Allen, Frisco, Fort Worth, McKinney, and Plano. Once complete, this location will be the closest H-E-B to Downtown Dallas.

Additional stores are also planned for Forney, Irving, Melissa, Rockwall, and Prosper.

The cheese and deli sections inside the new H-E-B store, Monday, June 25, 2018, in Bellaire. It's the first two-story H-E-B to open in the Houston area. ( Karen Warren / Houston Chronicle ) (Photo by Karen Warren/Houston Chronicle via Getty Images)

The company also operates other retail brands, including Central Market and Joe V’s Smart Shop. A Joe V’s Smart Shop opened in Oak Cliff this summer.

Some Friendly Competition

SMU economist Mike Davis says the nearly 10-acre site near Preston Hollow would be the right fit for the store's customer base.

"H-E-B is really looking for two things," he explained. "They want a relatively affluent neighborhood. And even if there are grocery stores there already, I think they're willing to compete. And H-E-B also wants to build big stores. And it looks , from what I can tell, like this North Dallas location is going to fill both of those H-E-B wants."

The new site would offer high visibility and easy access off LBJ Freeway.

But unlike its suburban locations in growing neighborhoods, it would have some established competition. The area has a nearby Whole Foods, Costco and Walmart, the largest grocery chain in the U.S.

"This is how capitalism works. And the other thing that's interesting about this is HEB is willing to take on the Costcos and the Targets and the Walmarts, the stores that sell lots and lots of things, including groceries. David said. "Especially Walmart has had a huge presence in the grocery business for some time, but apparently H-E-B isn't afraid of them."

Davis says H-E-B's choice of this location shows the vibrancy of North Dallas. 

"We're much better off living in a community that is growing than a community that is in decline," he said. "And we, right now, are living in an area of the country that is really expanding. And it's not just expanding with more people; it's expanding with relatively high-income people."

H-E-B was recently ranked the No. 1 grocery retailer in the U.S., according to a report by customer data research firm Dunnhumby.

What we don't know:

Details about the property purchase have not been disclosed.

It’s also unclear when construction will begin or when the store will open.

The Source: Information in this article comes from news releases from H-E-B, research from DunnHumby, and previous FOX 4 research.

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