Near-North Austin Grocery Scene Report

In reading the minutes of the Allandale Neighborhood Association’s August 30th meeting, I came across some interesting information regarding the H-E-B at the corner of Burnet and Allandale. If Knight Real Estate is to be believed, H-E-B is apparently staying put on that corner and has no plans to look at the redeveloped Northcross Mall property.

Knight is the property manager for Allandale Village. H-E-B’s 50-year lease there expired two years ago, but they’re now two years into the first of four five-year lease extensions. They have no plans to renovate or expand the existing store.

Anyone who shops at this H-E-B on a regular basis knows it’s the smallest, least well-stocked and most cramped-up location in the Austin area. I typically drive the extra distance to the Far West location if I have serious shopping to do. Although a bad H-E-B is still beats a middling Randall's or Albertson's on price, the San Antonio-based chain stands to lose its neighborhood allegiance if a marginally better grocery store moves into the redeveloped Northcross Mall.

If H-E-B isn’t moving into Northcross, the only logical contender left for the proposed supercenter there is Wal-Mart. Target has a recently-remodeled store at Ohlen and Research, so I doubt it would be them.

Although hatred of Wal-Mart’s business practices and political leanings will keep a few people from shopping there, it won’t take much effort from Sam’s shock troops to pick off Allandale H-E-B customers. At that point, they’ll have no choice but to expand or wither.