The Meijer Mystery: Why the Midwest‘s Favorite Supercenter Hasn‘t Made It to Texas (Yet)

Drive through any major city in the Midwest, and you‘re likely to spot a Meijer store towering over the retail landscape. With its sprawling supercenters that sell everything from apples to electronics, Meijer has become a one-stop-shop for millions of customers in states like Michigan, Ohio, Indiana, and Illinois. But drive through Texas, and you won‘t find a single Meijer location.

As a retail expert and picky shopper, I‘ve always been intrigued by Meijer‘s absence from the Lone Star State. Texas is a retail powerhouse, with a huge consumer base and no shortage of competition. So why hasn‘t Meijer taken the leap? Let‘s dive into some data and insights to explore the potential challenges and opportunities of Meijer expanding to Texas.

Meijer by the Numbers: A Retail Force in the Midwest

First, let‘s put Meijer into perspective. Founded in 1934 in Greenville, Michigan, Meijer has grown to become the 13th largest private company in the U.S., with estimated annual revenue of $20.7 billion in 2022, according to Forbes. The company currently operates over 250 supercenters across six states:

Source: Meijer.com, 2023

Clearly, Meijer has a strong foothold in the Midwest, with Michigan alone accounting for nearly half of its total store count. But the company has been gradually expanding its territory in recent years. Since 2020, Meijer has opened new stores in Wisconsin, Ohio, and its newest market, Kentucky.

Everything‘s Bigger in Texas: The Retail Landscape

Now let‘s look at Texas. With a population of nearly 30 million, Texas is the second-largest state in the U.S. both by area and population. It‘s also home to some of the nation‘s fastest-growing cities, such as Austin, Dallas, and Houston.

Texas has a thriving retail sector, driven by its large population, strong economy, and business-friendly environment. According to the Texas Comptroller, the state‘s retail trade employment totaled over 1.3 million in 2021, accounting for nearly 11% of Texas‘ total employment.

However, Texas is also a highly competitive retail market, with a mix of homegrown favorites and national giants vying for market share. Here‘s a snapshot of some of the major retailers operating in Texas:

Sources: Company websites and annual reports, 2022

As you can see, Walmart dominates the Texas market with nearly 600 stores, followed by regional favorite H-E-B and national chains like Kroger and Target. These retailers have spent decades building out their presence in Texas and establishing strong brand loyalty with shoppers.

The Challenges of Cracking the Texas Market

So what would Meijer be up against if it decided to expand to Texas? Retail analyst Chris Boring, founder of Boulevard Strategies, sees several potential hurdles:

"Meijer would face significant start-up costs to build out a presence in Texas," Boring explains. "They‘d need to invest in real estate, distribution, marketing, and hiring in a brand-new market. And they‘d be going head-to-head with entrenched competitors who have a long history in the state."

Real estate, in particular, could be a challenge. Meijer stores average around 200,000 square feet, meaning they require large plots of land, ample parking, and easy access to highways. In Texas‘ booming metropolitan areas, suitable sites could be scarce and expensive.

There‘s also the question of brand recognition. While Meijer is a household name in the Midwest, it has little to no brand awareness in Texas. Building that recognition would require significant marketing spend and time.

"Texans are fiercely loyal to their favorite brands, whether it‘s H-E-B, Buc-ee‘s, or Whataburger," notes Boring. "Meijer would need to offer something truly unique and compelling to win over Texas shoppers."

Potential Upsides for Meijer in Texas

Despite these challenges, there are also potential opportunities for Meijer in the Texas market. For one, Texans love a good deal. A 2019 survey by Valassis found that 57% of Texas shoppers "always" look for coupons and discounts when shopping, compared to 48% nationally. Meijer‘s focus on low prices and weekly promotions could resonate with these value-conscious shoppers.

Meijer‘s wide product assortment, spanning from groceries to clothing to home goods, could also be a draw. While H-E-B dominates in grocery, and Walmart and Target have a strong hold on general merchandise, Meijer could potentially carve out a niche as a one-stop-shop for busy Texas families.

And then there‘s the potential economic impact. A new Meijer store typically creates around 300 jobs, according to the company. In a state like Texas, which prides itself on job creation and business growth, that could be a compelling selling point for local officials and developers.

Will Meijer Ever Make the Move?

So will we see a Meijer store in Texas anytime soon? The company has been tight-lipped about its expansion plans, but history suggests that any move would be slow and deliberate.

"Meijer is a very disciplined, risk-averse company," says retail consultant James Thomson, a former business head for Amazon Services. "They don‘t rush into new markets. They take their time to study the landscape, build relationships, and test the waters."

Thomson points to Meijer‘s gradual expansion into Wisconsin and Kentucky as examples. The company opened its first Wisconsin store in 2015 and now has 11 locations, with plans for a 12th by 2024. In Kentucky, Meijer opened its first store in 2017 and now has 16, with more in development.

"I wouldn‘t be surprised if Meijer is already studying the Texas market and considering its options," Thomson speculates. "But I wouldn‘t expect a major rollout anytime soon. They‘ll want to make sure they have the right strategy and resources in place before making a big bet."

The Bottom Line for Texas Shoppers

For now, Texans will have to visit the Midwest to experience the Meijer difference. The closest stores are over 700 miles away in southern Indiana and Kentucky. And while Meijer does offer home delivery through Shipt in some of its markets, that service hasn‘t made it to Texas either.

But even without Meijer, Texas shoppers have plenty of options for their grocery and general merchandise needs. From H-E-B‘s legendary produce section to Target‘s on-trend fashion and home decor, there‘s a retailer for every taste and budget in the Lone Star State.

Still, as a retail nerd and picky shopper, I can‘t help but wonder what a Meijer store would look like deep in the heart of Texas. Would it win over loyal H-E-B fans with its mix of low prices and one-stop convenience? Or would it struggle to find its place in an already crowded and competitive market?

Only time will tell if Meijer decides to take on Texas. But one thing‘s for sure: the retail landscape in this big, bold state is never boring. And whether Meijer joins the fray or not, Texans will keep on shopping, bargain-hunting, and supporting the stores they love.