H-E-B at 110: From Humble Beginnings to a Texas Icon
H-E-B founder Florence Butt behind the counter of the first store.
was Nov. 26, 1905, to be exact, when Florence Butt opened the C.C. Butt Grocery Store with her savings of $60 to support her ailing husband and three children. For $9 a month, she leased the 450-s.f. store on the ground floor of a small frame building on Main Street in Kerrville, Texas. Sales for that first month were $50.60, a tiny beginning for what would become a Texas icon. While Florence ran the store, she also put down roots in her new community. She eventually came to rely on her youngest son, Howard, to help out at the store after school and make grocery deliveries to customers using a hand-drawn red wagon. When Howard took over leadership of the family business, he moved to a cash-and-carry operation and expanded across the state of Texas. In 1971, Howard handed the reins of leadership to his youngest son, Charles C. Butt. Under Charles’ direction, H-E-B has grown into one of the largest privately held retailers in the country, with more than 360 stores, multiple manufacturing plants, warehouses and transportation depots. H-E-B, with sales of more than $22 billion, operates more than 360 stores in
Inside the new Houston H-E-B on San Felipe store that opened in February.
Texas and Mexico. Known for its innovation and community service, and recognized for its fresh food, quality products, convenient services and a commitment to environmental responsibility and sustainability, H-E-B strives to provide the best customer experience at everyday low prices. “Since our humble beginnings, H-E-B has remained dedicated to making the lives of Texans better by providing an exceptional shopping experience and quality products and services at affordable prices,” said Craig Boyan, president of H-E-B. “It is because of the longstanding relationships we share with our amazing Partners (employees) and our loyal customers that we are able to celebrate 110 years in business, and we hope to celebrate many more to come.” Based in San Antonio, H-E-B employs more than 85,000 Partners and serves millions of customers in more than 150 communities. The Shelby Report salutes H-E-B on 110 years of serving customers in Texas and Mexico and presents this history in honor of its success.
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Putting Food on the Table: An American Empire in Texas Florence Clementine Thornton comes into the world during the Civil War, on Sept. 9, 1864. She is the daughter of a farmer and the youngest of eight siblings. She graduates with honors from a Baptist School in Kentucky and then becomes a teacher. She marries Charles Clarence Butt, a widower 16 years older, when she is 24 years old. Sons Charles C. Butt Jr. and Howard Butt are born in August 1890 and April 1895, respectively. ••• In 1904, the family moves from moist Memphis, Tennessee, to the drier clime of San Antonio, Texas, because the elder Charles suffers from tuberculosis. A year later, the family moves to Kerrville. With Charles unable to work, Florence must provide for the family. She sells Great Atlantic & Pacific Tea Co. products door to door.
The Butt family in 1905: Howard Sr., Florence, Charles Jr., Charles Sr. and Eugene. ••• In November 1905, Florence Butt invests $60 and opens the 450-s.f. C.C. Butt Grocery Store on the ground floor of a two-story frame building on Main Street in Kerrville. It features “fancy and staple groceries.” The family lives upstairs. Charles Jr. helps in the store while Howard delivers groceries, first in a little red wagon and later on horseback. ••• By 1913, the store has moved into a rock Masonic Building on Earl Garrett Street and is advertised as “Mrs. C.C. Butt.The Sanitary Grocery Store.” Howard helps out, and by the time he is 16, he is managing the store. He is an excellent student and graduates as valedictorian of Tivy High School in 1914.
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The Shelby Report of the Southwest • October 2015
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A natural born retailer, Howard Butt knows greater things would come from the foundation his mother laid. But he takes a break after high school and hitchhikes to California. He seeks out and meets his favorite author, Jack London. He picks grapes to earn money to get back home. ••• With World War I raging in Europe, Howard adds the middle name “Edward” and joins the U.S. Navy in 1917. At one point, he serves as aide to the commandant of the Naval Station Great Lakes near North Chicago, Illinois, the Navy’s only “boot camp” that had been built between 1905 and 1911. •••
Howard E. Butt in 1924.
Howard returns to Texas in 1919 and takes over management of the dry grocery again from his mother. Like other mercantile businesses of its time, the Butt family’s full-service store sell mostly nonperishable products. Flour, sugar, salt and crackers are scooped from barrels and sold by the pound, and merchandise usually is sold on credit. Store clerks gather all the items for customers and deliver the goods to their homes.
Howard E. Butt Sr., left, in a C.C. Butt Grocery delivery truck. ••• With Howard helping at the store, Florence Butt is freer to spend time on religious and philanthropic endeavors. She is Sunday school superintendent at the First Baptist Church of Kerrville for many years. She becomes the first Mother Advisor to the Order of Rainbow Girls affiliate of the Order of the Eastern Star, a Freemasonry organization. Her support helps the formation of Oak Park Baptist Church. In 1948, she is listed as VP of the H.E. Butt Grocery Co. Inc. Howard Butt is listed as president. Florence passes away at age 89 on March 4, 1954, a few weeks after suffering a stroke. She is buried in Glen Rest Cemetery in Kerrville, next to Charles Sr., who had died in March 1915 at age 67. The Texas House of Representatives passes a resolution expressing sympathy upon Florence’s death and reflecting that she was an “outstanding citizen,” “a good, gentle, and unselfish woman.” ••• Howard Butt changes the grocery’s business model. At the end of 1921, during a two-day New Year’s break, Howard and an assistant put prices on all the merchandise in the store using paperclips and a stapler. Instead of the goods-on-credit and home delivery offered by his competitors, Howard’s store, renamed C.C. Butt Cash Grocery on New Year’s Day 1922, is now a self-serve, cash-and-carry operation. The store also begins to sell fresh meat. An advertisement in the Kerrville Mountain Sun on Dec. 30, 1921, announces the change: “We will sell on a very low margin of profit because our business expense will be very low … and we know that we can save you more than 10 percent on your monthly grocery bill.” Customers appreciate the lower prices at the C.C. Butt Cash Grocery and volume picks up. But the post-war recession sends commodity prices plummeting, leaving the store with stock that cost more to buy than the Butts could charge to sell it. Creditors help keep the store afloat. Howard Butt tries four times to expand the family grocery business. He opens a feed store in Kerrville and grocery stores in Center Point, Junction and Brownwood, according to The Handbook of Texas. All fail. Other attempts in Eagle Pass, Uvalde and Crystal City fail as well. ••• Howard Butt marries Mary Elizabeth Holdsworth of Kerrville on Dec. 5, 1924, and after that, his fortune turns. He persists with efforts to grow the grocery business, and in 1926, he opens a successful store in Del Rio. It is a Piggly Wiggly franchise. Memphis, Tennessee-based Piggly Wiggly had introduced the concept of self-service shopping in 1916. Howard opens two more Piggly Wiggly stores in 1927 in Brady and Gonzalez, and in 1928, he borrows $38,000 to buy three stores in the Lower Rio Grande Valley—in Brownsville, Mercedes and Weslaco. He builds two new stores in San Benito and Harlingen. ••• In 1929, Howard E. Butt moves his family and the headquarters of his grocery business to Harlingen to better manage the enterprise. Butt borrows short-term money from banks and rolls over his debts. He is scrupulous in handling every detail of operations. The stores specialize in low-priced foods. For a nickel, customers can purchase a pound of Rio Coffee, shortening or prunes.
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The Shelby Report of the Southwest • October 2015
110th Anniversary ••• In 1934, Howard forms the H.E. Butt Foundation, a charitable organization created to aid the community. Mary Butt serves as president. H-E-B contributes 5 percent of its pretax earnings to charitable causes in Texas. That continues to this day. •••
On July 21, 1929, H-E-B holds its first documented employee picnic at Olmos Lake in Olmita, Texas. ••• In the 1930s, Howard’s company is well positioned as the U.S. economy struggles through the Great Depression. People still buy food, and his stores are designed for value. The grocery company grows. By 1931, Butt Grocery is operating 24 stores, with four in Corpus Christi. Stores open in Alice and Austin. ••• On Sept. 5, 1933, a hurricane with sustained winds estimated at 125 mph hit Brownsville, causing heavy damage to the Rio Grande Valley and killing 40 people in southern Texas. The storm damages many of Howard’s properties. His Piggly Wiggly in Harlingen is the only grocery store in the area to open immediately after the storm.
In 1935, the company name becomes H.E. Butt Grocery Co. Howard opens stores in Crystal City, San Angelo, Kingsville and Kerrville. The number of stores he operates now is 32. ••• Back in 1928, Howard Butt and R.L. Hill, an ice manufacturer in Harlingen, had begun building a canning factory. By 1936, the Harlingen Canning Co. begins producing “Texas-grown, Texas-packed” products. It packs and ships private label products nationwide. H.E. Butt Grocery Co. becomes vertically integrated by purchasing the plant and also a bakery. ••• In 1935, Howard begins calling his stores the H. E. Butt Grocery Co. with the exception of his Valley Piggly Wiggly stores, which by 1938 are operating in Brownsville, San Benito, Harlingen, Mercedes, Weslaco, Donna, Pharr, McAllen, Mission, Edinburg and Raymondville. The banner on those stores is not changed until the early 1940s. •••
Congratulations to
The opening of a new store in Robstown in 1938 is delayed two weeks due to the impending birth of the Butts’ third child, Howard E. Butt Jr. Store openings feature giveaways, and in Robstown, chickens are tagged and tossed off the roof of the building. People who catch a bird and get a tag get free food items. ••• In 1940, the corporate headquarters moves from Harlingen to Corpus Christi, and so does the family. Howard Butt takes on additional responsibilities in the community, including serving as head of the First Bank of Corpus Christi, and has interests in the Boggus Motor Co. of Corpus Christi, Harlingen and McAllen. Mary Butt organizes local branches of the YWCA, a home for the aged, a tuberculosis hospital and a local branch of the American Cancer Society.
110 Years in Business Our company appreciates our long partnership with HEB
••• In the 1940s, the retailer opens its first air-conditioned stores and begins stocking frozen foods. Exclusive brand names also appear, including Village Park and Park Manor. The company opens three stores in San Antonio. •••
In 1942, the first H. E. Butt Grocery store in San Antonio opens.
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Opening day at the 1601 Nogalitos Street store in San Antonio on April 1, 1945, right. Pictured above is the same store in 2014.
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The Shelby Report of the Southwest • October 2015
110th Anniversary
In 1946, the company’s stores are branded H.E.B. •••
Stores open in Taylor in 1951 and in Waco in 1956 and in smaller towns along the way between the two. ••• Because of its centralized location, San Antonio in 1952 becomes the site of Howard E. Butt Grocery Co.’s 132,000-s.f. regular warehouse and facilities for produce and frozen food. •••
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On April 28, 1954, the Texas Legislature passes a resolution lauding Florence Butt’s leadership and accomplishments. ••• It was by 1956 that 11 Butt Piggly Wiggly stores in the Valley began to be listed as H. E. Butt Grocery Co. In 1957, the stores in Edinburg and Mission are bannered with the much-shorter H.E.B. The remainder of Butt’s Valley stores would take on the H.E.B. banner the following year. •••
Florence Butt
In 1953, H.E. Butt Grocery Co. opens a 10,500-s.f. “food wonderland” back in its hometown of Kerrville. In the 1950s, the dry grocery becomes a supermarket. The H.E.B. store consolidates the fish market, butcher shop, pharmacy and bakery under one roof. ••• When the company celebrates its 50th anniversary in 1955, it has 65 stores in 29 Texas cities. ••• In 1955, Texas Gov. Allan Shivers appoints Mary Butt to the governing board of Texas State Hospitals and Special Schools (later the Texas Department of Mental health and Mental Retardation). She is appointed by six different governors and serves as the only woman member of the board for 18 years.
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Howard E. Butt Sr. and 19-year-old Charles Butt at a Waco grand opening on June 24, 1957.
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By February 1958, the corporation switches its signage and advertising from Howard E. Butt Grocery Co. to H.E.B. (It would be updated to the current H-E-B in 1991.) ••• In 1959, the company begins publishing a monthly news magazine for its employees and their families. Howard Butt Jr. is editor in chief of “The Newsbasket.” ••• By 1960, the company operates 84 stores in 35 cities. It continues to build, expand and replace stores. In some communities, it reaches a saturation point and, by doing so, runs out-of-state competitors out of town. •••
On July 4, 1970, the Pleasanton H.E.B. opens with great fanfare. •••
In September 1960, Lois and Beatrice from H.E.B.’s San Antonio warehouse office hold the “world’s largest” shopping bag awarded to a lucky customer during San Antonio #20’s opening celebration.
On July 12, 1971, Charles C. Butt succeeds his father, Howard E. Butt Sr., to become president and CEO of H.E. Butt Grocery Co. ••• In 1971, the stores begin to stock alcoholic beverages. ••• In March 1972, the Texas Senate passes Resolution 81 commending Howard Butt Sr. for his contributions to the state. •••
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S h i r l e y Cothran, Miss America for 1975, visits H.E.B. in Corpus Christi June 4-5 that
In 1961, President John F. Kennedy appoints Howard Butt to the President’s Committee on Equal Employment Opportunity. •••
On Aug. 7, 1966, H.E.B. holds its first “Truck Roadeo,” where drivers show off their safety skills.
••• In 1967, the Butt-Holdsworth Memorial Library opens with support from the Butt family. Among attendees is First Lady Alta “Lady Bird” Johnson.
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The Shelby Report of the Southwest • October 2015
110th Anniversary
America for 1975, visits H.E.B. in Corpus Christi June 4-5 that year. She is brought to the city as the guest of H.E.B. and makes appearances at three stores.
In 1976, H.E.B. opens the largest milk plant in Texas in San Antonio. The company also operates the largest bread bakery in the state. ••• In 1985, H.E.B. buys 10 acres of the U.S. Arsenal in San Antonio (established in 1859). H.E.B. rehabilitated the existing buildings and moved its headquarters to San Antonio from Corpus Christi. As H.E.B. has added onto the facilities, it has retained the use of limestone. (City of San Antonio photo) ••• On March 11, 1988, H.E.B. Driver Luis Torres of Corpus Christi is the first to achieve driving 2 million consecutive safe miles. For this epic accomplishment, he is inducted as a “Legend” in H.E.B’s Transportation Hall of Fame. ••• In the 1990s, H-E-B introduces the H-E-B Own Brand.
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Howard Edward Butt Sr. passes away on March 12, 1991, at age 95. ••• On Oct. 6, 1993, Mary Butt passes away in her home in Corpus Christi. ••• In 1994, H-E-B opens the first Central Market in Austin. Texas Monthly dubs it “an amusement park for food lovers.” Charles Butt had acquired the stateowned property on the corner of Lamar and 38 ½ streets in Austin in 1992. He believed it to be such a unique property that he wanted to create a completely different concept for it. The result was Central Market. Across a serpentine flow and full-view, European-style layout, customers experience the energy, color and aroma of coffees, hot baked breads, vegetables, fruits and herbs—some locally grown and others from as far away as Tanzania. Central Market’s 80-ft. seafood case, selection of 600 cheeses, 3,500 wine labels and specialty grocery aisles are among the dazzling features that elevate the everyday shopping trip. Highly trained experts, called “Foodies,” don green-striped aprons and assist customers with solutions on topics ranging from key recipe ingredients and low-carb options to gifts and entertaining a group of 10 arriving at your home in 30 minutes. Foodies are trained to know every product in the store and to be on hand just to help. ••• In February 1997, H-E-B opens a 74,000-s.f. store across the border in an upscale suburb of Monterrey, Mexico.
Inside the San Pedro store in Monterrey, Mexico.
An H-E-B in Tampico, Mexico.
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The Shelby Report of the Southwest • October 2015
110th Anniversary ••• In 2000, H-E-B introduces its mascot, H-E-Buddy. ••• In 2001, H-E-B Houston market.
enters
the
••• Since 2001, Stephen Butt, nephew of Charles Butt and grandson of H.E. Butt Sr., leads Central Market. Stores open in Fort Worth, Plan, Dallas and Southlake. The stores embody the “next generation” outlook in terms of branding and additional features. ••• The first Excellence in Education Awards celebration is held in San Antonio. The 2015 Excellence in Education Awards banquet was held in May, when Chairman Charles Butt (pictured) distributes a total of $430,000 in cash and grants to the state’s top teachers, principals, school districts and one early childhood facility. •••
Happy 110th Anniversary, H-E-B!
In 2002, H-E-B opens its state-of-the-art quality assurance laboratory, giving the company technologically advanced scientific capabilities, including DNA analysis to detect genetically engineered ingredients in food products and pathogenic microorganisms. H-E-B is the only retailer in the U.S. to undertake extensive safety testing of produce and ground beef. ••• In 2003, H-E-B opens a $4 million, 14,000-s.f. transportation terminal in Weslaco. ••• In 2003, H-E-B ranks sixth in the nation and first in Texas in a Consumer Reports reader’s survey of the nation’s top conventional supermarkets; the survey is based on price, checkout speed, service and cleanliness. In addition, H-E-B ranked 10th in the nation among privately held companies based on $11 billion in annual sales, according to Forbes. ••• In 2004, H-E-B introduces the H-E-B plus! concept with a store in San Juan, Texas. The store provides customers with expanded product and service offerings, including extensive music, video, and DVD selections; a larger baby department; dedicated space for grills and grilling supplies; an expanded card and party product section; lawn and garden equipment; electronic and household items; and designated space for “surprise buys.” ••• In 2004, H-E-B opens a new Houston bakery. This fully automated facility provides fresh breads to the region. The bakery produces an average 153 loaves of bread and 750 buns per minute.
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The Sensational Lemon Cupcake is a best seller at H-E-B.
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The Shelby Report of the Southwest • October 2015
110th Anniversary •••
••• H‑E‑B opens three H‑E‑B Plus! stores, two of which feature a Texas Backyard garden center. •••
the community and one from participating Partners. The top cash prize is $10,000. To date, 185 contestants have lost more than 4,000 pounds. In 2006, H‑E‑B opens its first Latino‑focused store, Mi Tienda, in Houston, Texas. Mi Tienda, Spanish for “my store,” offers products favored by Hispanic customers, such as piñatas, pan dulce, and pupusas, and is decorated like a Mexican village. ••• In 2007, H‑E‑B opens a warehouse in 400,000-s.f. Weslaco. The Regional Dry Grocery Facility serves the Rio Grande Valley and South Texas regions. •••
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The first Joe V’s Smart Shop opens in Houston in 2010. This small store offers big savings on meat, produce and groceries. ••• H-E-B begins the Slim Down Showdown internally in 2010 and follows a group of Partners as they work with a team of fitness experts and nutritionists to set them on a course for a healthier lifestyle. In 2012, H-E-B expands the program to include community members. One winner is selected from
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On Texas Independence Day, March 2, H-E-B kicks off a fivemonth long celebration across the Lone Star State in honor of the company’s 110th anniversary. The kickoff celebration begins at the H-E-B located at 300 Main St. in Kerrville, just blocks away from where Florence Butt opened the original store. H-E-B takes the celebration to 14 cities in the order in which H-E-B originally entered that market. •••
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In 2012, H-E-B introduces the Primo Picks Quest for Texas Best contest. It is a competition that invites new food product submissions. The grand prize winner gets $25,000, and his or her creation becomes a Primo Pick. Primo Picks selections represent the best of what is in stores, such as H-E-B MooTopia, H-E-B Queso Poblano Chicken Sausage and H-E-B That Green Sauce.
H-E-B demolishes its oldestoperating store at 1601 Nogalitos Street in San Antonio
The H-E-B Mobile Museum showcases a digital archive of historical H-E-B mementos and a timeline of the company’s history. H-E-B asks customers to contribute to the history by bringing mementos to customer appreciation day events in their city for inclusion in the mobile museum. H-E-B representatives photographed items and included brief descriptions.
Partners in Corpus Christi (pictured) honor firefighters stationed at Fire Station #8 on Kostoryz Road on Sept. 11, 2015. They express gratitude on the anniversary of the worst terrorist attack in American history by providing a meal for them and cleaning up afterward. Many H-E-B stores have done this for several years.
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In 2010, H-E-B opens the Temple Retail Support Center, a 450,000-s.f. warehouse and transportation facility, strategically located in the Central Texas Region. •••
In July 2014, H-E-B truck driver Andy Corona is presented with the H-E-B Platinum Crown Award for hitting four million safe consecutive miles. Hundreds of Partners line the roads holding up signs, balloons and banners to celebrate with Corona and his family.
in 2014 to make way for its modern replacement. The design for the new store, which opens on Jan. 16, 2015, incorporates the curved corner entrance wall and canopy. It also features the grocer’s first “travelator,” which leads to the second floor in the company’s first multilevel store.
The Nicholas Brown family received a home in July 2013. In 2013, H-E-B launches Operation Appreciation, a companywide campaign to honor service members of the U.S. Armed Forces. H-E-B and partner Operation Finally Home are giving homes to veterans and their families. All told, H-E-B and Operation Finally Home will gift seven homes. In 2014, H-E-B partners with the Gary Sinise Foundation to broaden the home building program. H-E-B also honors its Partners who have served. They are given “Proudly Served” pins to wear on their name badges. It also holds special sendoff and welcome home events for Partners who are deployed or returning home from military service.
The Shelby Report owes a deep debt of gratitude to Norman Rozeff of Harlingen, Texas, who graciously allowed the use of his work in this tribute to H-E-B’s 110th anniversary. Other sources: Handbook of Texas, Texas State Historical Association International Directory of Company Histories, Vol. 32 (2000) City of San Antonio
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