“We have a lot of retail in Plano. It’s one of our economic strengths, and competition in retail is great for everybody,” said Kelle Marsalis, president and CEO of the Plano Chamber of Commerce. “It’s not just new competition coming into the market, but the need to stay competitive. You’re seeing a lot of these larger grocers using it as a chance to reintroduce themselves in the community.”
H-E-B’s first Dallas-area location opened in Frisco on Sept. 21, with the Plano location following on Nov. 2. The 118,000-square-foot store in Plano includes a full-service p•harmac•y with a drive-thru, a fuel station and a carwash along with a True Texas BBQ restaurant.
Meanwhile, Kroger and Albertsons officials on Oct. 14 confirmed a merger in which Kroger will acquire all of the shares of stock and properties of Albertsons for $24.6 billion by 2024, according to a news release. This includes Dallas-area affiliate stores Tom Thumb and Market Street. Kroger in the past year has also renovated local stores, and plans are under review for a potential new north Plano location at 9700 Coit Road.
Over the past year, Walmart, too, has completed store renovations and expanded its subscription service. Local Target and Tom Thumb stores have also undergone renovations.
Capitalizing on growth
As H-E-B staff considered where to expand, they looked at the growth occurring in Collin and Denton counties, said Mabrie Jackson, senior director of Public Affairs for H-E-B.
“As we think about the future of our business and position ourselves for success, we look at several deciding factors, such as market demand, strong population growth and real estate,” she said in an email.
According to census data, Collin County’s population grew by 26% from 2010 to 2020, and Plano’s grocery stores have felt the effect, according to Marsalis.
“If you’ve driven to any number of our grocery stores on the weekend and tried to find a parking spot, then you know that the demand is definitely there,” Marsalis said. “I think the options and accessibility provide that quality of life that we need to continue and serve the growth.”
Marsalis said the addition of H-E-B has also brought outside tax dollars to Plano.
“We have a lot of people traveling in to shop at H-E-B right now, or I’ve even heard folks say that they’re coming in to shop at a couple of the Targets that have been recently renovated,” Marsalis said. “We live in a community where it’s not like you have to pass through a gate to cross into Frisco or other neighboring towns—we travel from community to community throughout our daily lives. It’s nice to have some of those hotspots in our own community bringing folks in for all the other businesses as well."
Beyond the major players, Plano has a vast, and growing, selection of international grocery stores, including a Patel Brothers, two India Bazaars and many more. Marsalis said Plano’s variety of grocers is another strength for the city.
“Each of the grocers and retailers that we have in the community really brings a little bit of their own flavor,” she said.
Renovating for shopping trends
In the last year, Kroger, Walmart and Tom Thumb have held grand reopenings for three grocery stores in Plano after renovations, which included increasing general aesthetics and catering to the shopping demands of the post-pandemic customer. Target and Walmart locations in Plano are also in line for more renovations in 2023, store officials said.
U.S. Census Bureau data from August 2020 shows, during the pandemic, online shopping rapidly increased. Data shows this shopping sector experienced an estimated 10 years of growth within three months.
“Because people didn’t have a lot of options for shopping, online methods were a more approachable way to continue shopping,” said Kiseol Yang, a professor and digital retailing degree program coordinator at the University of North Texas.
John Votava, director of corporate affairs for Kroger, said the retailer sets out with a targeted list of stores in need of a refresh each year.
Walmart’s updates to five Plano stores include offering pickup, delivery and express deliveries in under two hours when construction is completed. The changes will also make Walmart+, the chain’s membership service, available to more customers, according to a news release from the retailer.
The retail giant experienced more people shopping online during the pandemic, which persists today, said Rissa Pittman, a Walmart market manager. The demand for Walmart’s pickup and delivery services has led the company to increase its order fulfillment capacity by 40% over the last two years, according to Walmart Communications Director Lauren Willis.
“We’ve expanded a lot of things in that [online grocery] space as far as time slots and more availability in each time slot to handle more customers each hour,” Pittman said. “That’s been a huge shift in the shopping trend.”
Technology advancements
In July, Kroger’s membership program, Boost by Kroger, was unveiled, and Kroger also opened a new automated fulfillment center in Dallas. It uses robot technology and other solutions to bring groceries to customers’ doorsteps. With a fleet of Kroger delivery vans, Kroger is now able to reach broader markets, Votava said.
“We don’t have any stores in Austin or San Antonio or Oklahoma City,” he said. “But now with this fulfillment center, we can reach customers in those areas and bring groceries directly to them, and allow them to save in the process, too. So it definitely expands our footprint without brick-and-mortar stores.”
Grocery stores have also pushed their mobile apps since the pandemic hit, which helps keep customers engaged as information is provided right at the shopper’s fingertips, Yang said. Apps and services, such as Walmart+, are ways to increase customer loyalty to the retailer, she said, and have effectively replaced the plastic store card that would hang on customer keychains.
“People use curbside pickup or Instacart, because they practiced this during the pandemic, and they found these reliable services,” Yang said.
Another way stores are staying competitive is appealing to hybrid shoppers, Willis said. Many people who shop in stores are also using their devices to read reviews online or find which aisles products are on.
“Before, you might have had strollers in boxes,” she said. “Now, we’ll have the different kinds of strollers we sell put together. ... And then there’s a QR code on there, and you just scan it, and it gets delivered to your home.”
For Walmart, the majority of customers are still shopping in physical stores, but there has been a large growth in the retailer’s online business, Pittman said.
Despite the technological advancements, in-store shopping is here to stay, Yang said.
“People still like to go and shop. So stores need to be there for the customers who like that kind of store experience,” Yang said.
Luring workers
The Plano H-E-B location was the second of five in the Dallas-Fort Worth area that are planned to open in the coming year. A location in McKinney is scheduled to open in summer 2023. Each store will employ more than 700 positions with pay starting at $15 an hour, Jackson said.
Meanwhile, Kroger and Walmart officials announced new hiring initiatives in September. Kroger’s starting pay is $11.50 an hour, and Walmart’s is $13 an hour. Both companies said they hope to compete for employees in ways besides pay.
Votava said the company’s benefits and retirement pension make it an attractive option for potential employees. Kroger’s college tuition reimbursement plans are another benefit, he said.
Degree programs and 401(k) matches are also incentives Walmart offers to employees, Willis said.
“... you have stores here that really wanted to be competitive against H-E-B when they opened, and one thing that we really have focused on is the associate experience,” Pittman said.
