Evergreen East
El Paso, Texas

According to a recent article in the El Paso Times, funeral giant Service Corporation International (SCI) has added an 8th facility in the El Paso, Texas, market.  They have recently had an Open House and Grand Opening to announce the opening at the Evergreen East Funeral Home on the city’s East Montana  Avenue.

While it is the firm’s 8th facility in El Paso it is noted that it is SCI’s first combo in the city as it is located near the entrance to the company’s Evergreen East Cemetery.

Service Corporation International last June announced that they would be investing over $40 million in Texas metro locations.  It is believed that this is one of those investments.  As of the end of last year SCI operated over 1500 funeral homes and about 470 cemeteries in the United States, Canada, and Puerto Rico.

Funeral Director Daily take:  I think this is how it will be going forward.  Large firms will continue to add or acquire to gain market share going forward.  Margins for the operator may be able to rise because  of the “Combo” effect and there is a consumer preference for these types of facilities whee the consumer can get “One Stop” shopping.

On the other hand, having eight facilities in one metro area necessitates a lot in the form of overhead expenses.  There is no way to avoid the real estate expenses, property taxes, and staffing expense issues that arise.  I still am a firm believer that a “Disrupter” in the death care industry will appear.  Much like Amazon in the retail shopping industry has caused all sorts of problems to established retailers like Wal Mart and Target who harbor the “Big Box” expenses.  Who will be the death care “Disrupter” and how will it happen is a question that someday will be answered.[wpforms id=”436″ title=”true” description=”true”]