Texas-based grocery giant H-E-B has announced plans to build a new 110,000-square-foot grocery store along with a 10,000-square-foot convenience store at the southeast corner of I-35 and McCarty Lane. The new store will feature grocery staples along with bakery, deli, drugstore, produce, floral, meat, and seafood departments, all tailored to meet the specific needs of an eager San Marcos community. Additionally, the development will include fuel pumps and a car wash, adding convenience for shoppers.
The capital investment for the project is estimated at $55.35 million, with the construction expected to create approximately 450 jobs. H-E-B has long been recognized for offering competitive wages, and while specific salary details for the San Marcos location are yet to be confirmed, the company is known for providing its employees—referred to as "Partners"—with comprehensive benefits and opportunities for career advancement.
“The City Council confirmed their desire to meet the needs of our community with their unique and proactive approach to encouraging this type of development,” said Economic & Business Development Manager, Christian Smith. “After that vote, staff began contacting grocery stores, and we’re proud that we were able to secure development of this project within a short period of time.”
The project will be located on a 17.67-acre site, with an estimated facility size of 110,000 square feet. It is expected to boost the local economy significantly, especially with the City Council approving a grocery store incentive in May 2024. This incentive provides up to 80 percent in property and sales tax rebates, gradually decreasing over a five-year period, which aims to promote grocery store development in the area.
“Our community has expressed a desire to add additional grocery stores in San Marcos for many years,” said Mayor Jane Hughson. “The City Council took proactive steps to help make that happen in May 2024. When H-E-B contacted us in August to begin discussions, they cited our proactivity as a reason for moving forward with this project.”
H-E-B's expansion in San Marcos will not only provide new employment opportunities but also contribute to the city’s economic growth. The new store is projected to generate significant local revenue, which is further supported by the city’s grocery store incentive program. The approval of these tax incentives underscores the city’s commitment to attracting key retailers and developing commercial areas.
H-E-B has a strong commitment to giving back to the communities where it operates. The company’s philanthropic efforts include supporting Texas schools, emergency personnel, and veterans. Through programs like the H-E-B Food Bank Assistance Program and Operation Appreciation, H-E-B actively fights hunger and supports military families. These initiatives are part of H-E-B’s broader goal to strengthen the fabric of the communities it serves.
By expanding into San Marcos, H-E-B not only aims to meet the shopping needs of residents but also intends to become an active community partner, contributing to both the economic and social well-being of the city.
The new H-E-B location will further reinforce the company’s reputation as a leader in Texas retail, sustainability, and community engagement. Construction is expected to begin soon, marking a new chapter of growth for both H-E-B and San Marcos.