H-E-B: Online grocery is here to stay

H-E-B President Scott McClelland says bricks-and-mortar stores are here to stay.

But McClelland also says grocery stores must adapt to the growing presence of online food delivery services to remain competitive, according to the Community Impact Newspaper.

“We’re really inundated in the Spring and Cypress and North Houston area,” McClelland said during the Houston Northwest Chamber of Commerce’s annual Economic Outlook Forum March 29, according to the article. “At the same time, if you look at Kroger and Walmart, they’ve pretty much stopped building all together because they’re concerned about Amazon.”

To remain competitive, McClelland said H-E-B must work on improving the efficiency and profitability of its online delivery services, which costs the chain supermarket $10 per consumer while the consumer only pays $5. According to the article, H-E-B’s online delivery services include curbside, which allows customers to pick up their orders at the store, and delivery, which delivers orders to customers’ homes.

To read the article, click here.