H-E-B is planning a $700 million expansion of its supply chain operations in San Antonio, marking the company’s largest-ever investment in its manufacturing and distribution network.
The proposed expansion would take place at H-E-B’s Foster Road campus on San Antonio’s East Side, where preliminary plans include a new bakery, refrigerated warehouse, transportation building and expanded manufacturing capacity. While plans are still being finalized, construction could begin later this year, with the first facilities potentially opening by 2028 and development continuing through 2038.
“While we are still developing our plans, this will be a major investment for H-E-B that will create jobs and better position us to serve even more Texans,” said Carson Landsgard, Chief Supply Chain Officer. “We look forward to advancing our plans to grow our supply chain operations, a project that reaffirms our commitment to be an economic engine for our great state.”
If completed as planned, the project would bring total investment at the Foster Road campus to more than $1 billion. H-E-B purchased the 870-acre site seven years ago and has already invested more than $445 million in facilities spanning over 2 million square feet.
The investment comes as H-E-B continues an aggressive growth strategy across Texas, including store remodels, new store development and expanded logistics infrastructure to support rising demand and growth in key markets such as North Texas. Earlier this year, the retailer also acquired land in Valley View to support future supply chain operations.
Based in San Antonio, H-E-B operates more than 455 stores across Texas and Mexico under the H-E-B, Joe V’s Smart Shop, Central Market and Mi Tienda banners and reported annual sales exceeding $50 billion.
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