H-E-B Buys Out Albertsons in Austin

JON SPRINGER

SAN ANTONIO — H.E. Butt Grocery here last week said it will buy five stores in the Austin and Round Rock, Texas, market from Albertsons LLC.

Three of the locations will be converted into H-E-B stores. Two of the locations, which had already been closed by Albertsons, will not reopen, H-E-B said. The stores represent all the remaining Albertsons locations in the Austin-Round Rock market and will increase H-E-B's presence in that region to 45 stores.

Financial terms were not disclosed.

Under terms of the deal, Albertsons will continue to operate the open stores until early November. H-E-B said it plans to have locations in Round Rock and northwest Austin reopen as H-E-B stores in early December. The third store, in West Lake Hills, requires more extensive renovation and will reopen in February, H-E-B said.

“Central Texas is growing fast, and this is part of our long-term plan to keep up with that growth,” Jeff Thomas, senior vice president and general manager of H-E-B's Central Texas region, said in a statement. “We've been wanting to serve these neighborhoods for a long time, and now we're looking forward to bringing them our lower prices, fresh foods and quality products.”

According to Metro Market Studies, Tucson, Ariz., H-E-B already captures about 47% of the Austin grocery market with multiple formats, including two Central Market locations and an H-E-B Plus supercenter.