alt Hacker NewsHEB operates a similar model to Costco in being more expensive to the customer in a subtle way, through desirability. Their products are so interesting and appetizing that I go in with the intention of buying $30 of groceries and leave with a $100 load. Many of these products end up as local memes (tortillas, brisket queso, green sauce) they are so desirable.
Wal-Mart is the opposite. I go in to buy groceries and am always astonished to have my trip be like for $27 or something. I usually shop from the outside of the grocery (raw produce) and they are just dirt cheap.
HEB operates a series of upscale Central Market stores that are even more lopsided in price and even more interesting in selection.
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In Canada WalMart super centers (the ones with groceries) are low quality and have prices as high as (or higher) than other stores. Everything is prepackaged and shipped to the store so meat, dairy and bakery is the worst in town.
Fun fact but Central Market actually operates on the same margins as HEB. Their produce in particular is competitively priced. Where they get you however, is that all of their produce is jumbo sized. So yea, you have a competitive price on the apples per pound, but if you want 6 apples, they are on average going to be more than from HEB or a different supermarket.
Subtle, but it allows them to make some fun marketing claims!
Ya, central market was the only store close to me for a while and it crushed my budget, but was very worth it
> HEB operates a similar model to Costco in being more expensive to the customer in a subtle way, through desirability. Their products are so interesting and appetizing that I go in with the intention of buying $30 of groceries and leave with a $100 load.
Costco groceries are expensive because you're forced to buy in bulk. You can leave HEB with 1 tube of toothpaste or a single potato. You can't leave Costco with fewer than 5 tubes of toothpaste or several pounds of potatoes. I love Costco and imo they win in a few areas like the butcher, but HEB crushes them in the variety of desirable groceries hands down.