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Can You Buy HEB Grocery Stock? Here’s What You Need To Know!

Jenna Gleespen - August 17, 2021

HEB stock featured

With many Americans looking to start investing, grocery stores have become a hot topic in the investing world.

If you’re a Texan looking to invest in groceries, you’ve likely looked into H-E-B Grocery stock.

But why are grocery stocks a good investment?

These stores serve large communities, and this allows them to grow swiftly compared to other investment options.

For instance, Kroger, a larger nationwide grocery chain commands a high market capitalization.

So it only makes sense to want to get in on the ground floor of other, smaller grocery chains to get in before they explode in growth.

If grocery stocks interest you, keep reading to learn all about HEB Grocery Stock as well as their competitors you can invest in!

HEB grocery stock

A Brief History of HEB Grocery

HEB Grocery, also known as H-E-B, is a Texas-based grocery food chain.

The company was founded in 1905 by Florence Butt.

Florence opened the small grocery store on the ground floor of her home in Kerrville, Texas.

Following World War I, Florence’s youngest son Howard Edward Butt took over the store in 1919.

For 8 years, Howard tried to take the Butt family store and expand into other parts of Texas.

All stores he opened failed until he opened a second store in 1927 in Del Rio, Texas.

Following the success of the second store, Howard purchased three more grocery stores in the Lower Rio Grande Valley.

The Butt family has continued to operate the company.

In 1971, Charles Butt took over for his father, Howard; and under his guidance, HEB has seen massive growth.

Charles took the store from $250 million in annual sales in 1971 to an astonishing $13 billion in annual sales in 2006.

Everything is Bigger in Texas

Even though HEB is still considered a small grocery chain, the company is still quite large.

It serves the majority of Texas as well as Northeast Mexico.

In 2011, it was the largest privately owned company and the largest private employer in Texas.

Currently, all business operations for HEB take place in San Antonio, Texas.

HEB grocery stock

There are currently more than 340 HEB Grocery stores in operation, and the company has over 100,000 employees.

Many would argue that they are the largest grocery store in Texas, ranking in the top 10 and showing signs of continued growth.

Additionally, HEB customers demonstrate fierce loyalty to the store — unlike many larger chains.

More Than One Type of Store

HEB has begun to brand itself with different stores that cater to specific communities.

Depending on where the store is built, it provides a different experience from the others under the HEB umbrella.

There are 4 store formats in addition to the traditional HEB Grocery.

  • Central Market – The Central Market HEB locations resemble Whole Foods and Trader Joe’s. They offer organic and international foods, as well as a European-style bakery. They also have a larger beer and wine selection.
  • HEB Plus! – HEB Plus! stores resemble Walmart supercenters. They offer more than just groceries, like entertainment sections. These are closer to retail stores than other locations are.
  • Mi Tienda – Mi Tienda locations are Latino-themed stores. These locations offer Mexican baked goods, a carniceria, and a Cocina restaurant that sells Mexican food and drinks.
  • Joe V’s Smart Shop – Another iteration that resembles another chain, the Joe V’s Smart Shop is reminiscent of Aldi. By practicing the same business tactics, HEB can offer what they call “rock bottom prices” to their shoppers.

HEB is here to stay, as they continue to innovate and recreate themselves in communities where they want to increase retail sales.

Their Central Market and Joe V’s Smart Shop concepts are both a solid alternative to the chains that they take after.

A Benevolent Corporation

HEB Grocery’s dedication to its community and charity draws many customers in.

They donate 5% of all of their pre-tax profits to charity and this includes food banks and educational needs.

Can You Buy HEB Grocery Stock?

At this time, you cannot buy HEB Grocery stock; the company is not publicly traded, and as such, buying HEB stock is impossible.

Until the company provides information on an initial public offering (IPO), its stock will not be available for purchase.

Who Owns HEB Grocery

Since the company’s founding in 1905, it has been owned by the Butt family.

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Charles Butt is the company’s current CEO and Chairman.

HEB grocery stock

The company will most likely remain family-owned for the foreseeable future.

What Is The HEB Grocery Stock Price and Symbol?

HEB Grocery is not publicly traded on the stock market, so it does not have a stock price or a stock symbol, also known as a ticker.

Until an IPO is provided, there will not be any stock information regarding HEB Grocery.

Why Is HEB Grocery Successful?

HEB Grocery is a successful supermarket chain because it provides top-tier service and products for its millions of customers.

The company creates supermarket concepts that are ideal for specific customers and invests some of its earnings back into its community.

Many customers view HEB as a benevolent force in their neighborhood that creates better relationships with their customers.

HEB Grocery Competitors To Buy

If you’re disappointed that you can’t buy shares of HEB Grocery, don’t worry.

There are plenty of other investment options available to you! Take a look at these publicly traded companies with business models and strong earnings similar to HEB.

Kroger Co (NYSE: KR)

If you want to invest in a company that is solely a grocery store, your best bet is Kroger.

They are the second-largest supermarket in the country — only behind Walmart.

However, the difference between Kroger and Walmart is that Kroger is solely a grocery store.

Kroger is publicly traded on the New York Stock Exchange and can be purchased at a bit less than what Walmart shares are worth.

That’s not to say that you should count them out, however, more shares purchased means faster and higher returns.

Kroger is one of the oldest grocers in the country and was founded in 1883 in Ohio.

They’ve been serving communities ever since.

Many modern grocery stores model themselves after Kroger in terms of store layout and operations.

At this time, Kroger has over 3,200 stores and over 465,000 employees.

In terms of revenue, they’re the largest grocery store chain in the country, seeing $121 billion in 2019.

All data available makes Kroger a fantastic competitor to HEB Grocery.

Currently, Kroger stocks sell for $43 a share.

HEB grocery stock

Costco Wholesale Corporation (NASDAQ: COST)

Not solely a grocery store, Costco is another supermarket-style store that can be invested in.

The company is publicly traded, but rather than only selling food and groceries, they sell an assortment of items at wholesale prices.

Products are housed in warehouse-style buildings, and nearly all items are purchased in bulk.

Costco has an extensive assortment of meats and produce available as well as many selections of frozen food.

Costco is a relatively new company, being founded in 1983.

Even so, they’re recognized as the fifth largest retailer in the world.

When it comes to choice and prime beef, organic foods, and wine, they’re number one in the world.

The company has 804 locations, over 273,000 employees, and saw $166 billion in revenue in 2020 despite the pandemic.

Currently, Cosco stocks sell for $444 a share.

HEB grocery stock

Walmart Inc (NYSE: WMT)

Walmart is a giant when it comes to retail companies.

The company had humble beginnings in Arkansas, but quickly became one of the world’s largest companies.

Walmart helped to coin terms like hypermarkets, opening stores that served every need any customer could have.

They sell far more than just groceries these days, but the chain started as a supermarket.

Walmart operates not only their staple retail stores, but they own Sam’s Club, which operates like Costco.

However, they also have a line of grocery stores called Walmart Neighborhood Markets.

These stores serve communities solely as grocery stores, offering a limited range of products that aren’t food-related.

At this time, Walmart has over 10,000 stores in 24 countries.

They employ a staggering 2.2 million people worldwide, with 1.5 million of those employees being U.S. based.

In 2021, Walmart has already seen $559 billion in revenue, so investing in Walmart is a safe bet.

Currently, Walmart stocks sell for $150 a share.

HEB grocery stock

Can You Buy HEB Stock: Final Thoughts

HEB Grocery is a small grocery chain located in Texas.

They serve their communities through their grocery stores as well as through charitable donations.

Its commitment to its communities builds very positive relationships with shoppers.

Unfortunately, HEB stock cannot currently be bought, as it is a privately owned company.

So investors who want to trade H-E-B stock will need to look elsewhere or wait for a scheduled IPO date.

However, if you’re looking to invest in supermarkets or grocery stores, other options are available.

Stock for companies like Kroger, Costco, and Walmart are publicly traded and are great options in the grocery industry when it comes to investing.

 

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Jenna Gleespen is a copywriter specializing in finance and investment finance. Originally from the United States, she now calls London, England home.