Never underestimate PB&J without the ...Never underestimate PB&J without the ...https://www.recenter.tamu.edu/news/newstalk-texas/?Item=185852017-12-12T06:00:00Z2017-12-13T00:20:00Z

​​​​​​HOUSTON – Recently Houston business leaders chatted about the changing landscape of their industries in 2017 and beyond.

A common theme in the panel's discussion was evolution—particularly about grocery stores as they adapt to consumer demands for curbside delivery and convenience, and the evolution of real estate in Houston's growing urban core.

One panelist was Scott McClelland, president of San Antonio-based H-E-B.

In leading H-E-B's years-long expansion throughout Houston, McClelland said he's learned to take seriously consumer's demands for convenience. 

McClelland was a doubter, for example, when H-E-B started selling loaves of bread with the crust already cut off. H-E-B charged $0.75 extra for that bread, McClelland said.

"I thought we went too far," McClelland said. "Last year, we sold a million loaves of this product."

Valuing convenience, he said, means H-E-B keeps its shelves stocked with crustless bread. 

Convenience is also the driving force behind the nation's changing grocery store landscape. The rise of curbside pick-up and grocery delivery apps has tossed a wrench into grocery stores' otherwise steady revenue model. 

"I refer to it as retail Darwinism—if you're not effective and efficient at what you do, then going forward, you will not survive," McClelland said.

"Never underestimate demand for convenience."
Houston Business Journal
Houston-The Woodlands-Sugar Land
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