Grocery Wars Intensify in Texas

Jason Baker, founding partner of Houston-based retail brokerage rm Baker Katz, credits this trend to the efforts of traditional grocers such as Kroger and H-E-B to diversify their product lines and service offerings.

“Twenty years ago, Kroger and H-E-B were doing 25,000- to 35,000-square foot stores,” says Baker. “Now, both grocers are at or above 100,000 square feet because they’re offering everything from furniture and extended pharmacies to shoes and haircuts, not to mention stores that now have full restaurants operating inside. The willingness to experiment is driven by the significant foot traffic they generate.”

As for the specialty chains, adds Baker, their movement toward smaller store spaces stems from a willingness to locate stores closer to one another, a byproduct of expanding into more densely populated urban spaces.