Subject category:
Marketing
Published by:
Harvard Business Publishing
Version: 17 December 2003
Notes: To maximise their effectiveness, colour items should be printed in colour.
Abstract
H-E-B is a USD9 billion grocery chain located in Southwest Texas. This case focuses on H-E-B's private label strategy, a product category that accounts for 19% of H-E-B's sales and one that earns gross margins 50% higher than national brands. A leader in its markets, H-E-B is faced with increasing competition, especially from Wal-Mart, which has aggressively entered the Texas markets with a series of 'supercenters'. Although the case specifically focuses on H-E-B's Own Brands (private label), it more broadly raises important strategic questions regarding H-E-B's ability to compete effectively in this new market environment.
Location:
Industries:
Size:
USD9 billion revenues, 33,000 employees
Other setting(s):
2000
About
Abstract
H-E-B is a USD9 billion grocery chain located in Southwest Texas. This case focuses on H-E-B's private label strategy, a product category that accounts for 19% of H-E-B's sales and one that earns gross margins 50% higher than national brands. A leader in its markets, H-E-B is faced with increasing competition, especially from Wal-Mart, which has aggressively entered the Texas markets with a series of 'supercenters'. Although the case specifically focuses on H-E-B's Own Brands (private label), it more broadly raises important strategic questions regarding H-E-B's ability to compete effectively in this new market environment.
Settings
Location:
Industries:
Size:
USD9 billion revenues, 33,000 employees
Other setting(s):
2000

