Albertson’s adds insult to injury by overcharging for everything. Tomato? $4.99/lb please.
TJs and Costco also have similar fan bases, but they restrict their stores to the richer side of town.
Kroger and Albertsons, however, have operations in many stagnant or declining areas, saddled with union contracts from a long time ago when those places were not stagnant. Household sizes and hence the utility of full service grocers have fallen precipitously for many of their stores.
There is certainly a component of HEB’s leaders choosing to not squeeze a short term profit now, but they wouldn’t be able to do it if Walmart and Kroger could eat their lunch because their customer base was declining in numbers and purchasing power.
Hell, even Kroger and Albertsons’ customer base is declining in purchasing power which is why not Aldi and Lidl are wrecking them wherever Walmart hasn’t.
I had to argue with a Meat Department Manager at a Publix in Central Florida who told me that "Top Round Roast" did not exist. I told him I could walk 50 feet to the Deli and get some slices of the Boar's Head Top Round Roast Beef if he'd like to try this non-existent cut. He did not have an answer and I had to show him images of the cut I wanted and he said they don't sell that cut.
This was great given it was a 20-mile round trip to that store for me...
Having spent most of my life in the south, I thought Publix was a great grocery store. But then I spent some time traveling the US and discovered stores like H-E-B, Hy-Vee, Wegmans, and Harmons and realized that Publix was just clean version of a low-end grocery store.