AppleTree Markets: A History of a Texas Supermarket Chain

AppleTree Markets was a Texas supermarket chain with roots tracing back to Safeway. Formed in 1969 with the opening of Safeway stores in Houston, the brand as AppleTree emerged in 1988. For a period, the chain operated as many as 100 stores across Greater Houston and Greater Austin, but ultimately dwindled to a single location before closing in 2012.

Origins with Safeway

In 1988, Safeway sought to raise capital following a $4 billion leveraged buyout in 1986 and decided to sell its Houston division. The division, comprising 50 stores in Houston and 20 in Austin, along with stores in 23 other East and Central Texas communities, was sold to Texas Supermarkets Inc. For $174 million (approximately $244 million in 2024) . The sale included not only the stores but also a distribution center, a frozen food warehouse, a bread manufacturing plant, and a milk processing plant.

At the time of the sale, Safeway held an 18 percent market share in Houston, ranking third behind Kroger (27 percent) and Randall’s Food Markets (21 percent) . M. Dean Gantt, the former Houston division manager, became the president and CEO of Texas Supermarkets Inc., which initially owned only eight of the stores, leasing the remainder from Safeway .

Transition to AppleTree Markets

Texas Supermarkets was initially permitted to continue operating under the Safeway banner until June 28, 1989. However, the new brand, AppleTree Markets, began to appear in July 1989 .

Decline and Closure

By January 21, 2002, AppleTree Markets had significantly reduced its presence, operating only two stores in Bryan, Texas, where its headquarters had been relocated . One of these Bryan locations was sold in 2009, and the final AppleTree Market, located on Highway 21 and Texas Avenue in Bryan, closed in early 2012, marking the end of the chain .

AppleTree’s Presence in Austin

AppleTree Markets also had a presence in Austin, Texas. A location on the I-35 frontage road between 11th and 12th Street was once a Safeway before becoming an AppleTree Market . Another location at 715 Exposition Boulevard in West Austin operated as a Safeway in 1977, briefly transitioned to AppleTree, and later became a Randalls in 1994 .

Former employees of Safeway, AppleTree, and Randalls often transferred between stores within the Round Rock and Austin areas .