1. Channel: Grocery

H-E-B Opens Largest E-commerce Fulfillment Center

H-E-B said this week at it has opened a new 100,000+ square-foot e-commerce fulfillment center in Katy, Texas, about 30 miles west of Houston.

H-E-B said that it is “the largest eCommerce fulfillment center for the company, coming in at twice the size of previous facilities,” and that it “further expands the retailer’s commitment to integrate innovative technologies that drive omnichannel growth and provide a more convenient and better shopping experience for Texans.”  The facility will “support H-E-B Curbside and Home Delivery orders across the Houston area.”

The announcement goes on:  “To help support rising demand of online shopping, the eCommerce fulfillment centers stock goods found in stores, which are used to satisfy Curbside and Home Delivery orders. These facilities allow for more capacity, greater efficiency, less aisle congestion for the in-store shopper, and better product availability. To help streamline the process and boost productivity, the facilities use various forms of automation to help Partners throughout the order process. With these centers, H-E-B has grown its Curbside and Home Delivery services, which are available at more than 270 stores in Texas.”

KC’s View:

The Houston Chronicle makes the point that this is part of H-E-B’s broader strategic positioning to effectively compete with Walmart, which has been getting more aggressive in e-commerce (even delivering into people’s homes) and Amazon, which has a five-story fulfillment center in Richmond, about 30 miles southwest of Houston.

H-E-B isn’t fooling around – this is the seventh e-commerce fulfillment center it has opened in the past five years.  And I think we can all pretty much agree that when it comes to serving Texas customers, everybody else is playing catch-up.

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