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H-E-B to invest $200 million in South Austin, add 1,000 jobs

The expansion includes the opening of three previously announced new stores and a major remodel of an existing H-E-B Plus! location.

AUSTIN, Texas — H-E-B is planning a major expansion in South Austin that includes $200 million in investment and more than 1,000 new jobs.

H-E-B said its growth plans were driven by the increased density and growth in South Austin and that the plans include the opening of three previously announced new stores – near Slaughter Lane, on South Congress Avenue and at U.S. 290 – and a major remodel of an existing H-E-B Plus! location on East Riverside Drive.

"This level of investment has been years in the making, and we are incredibly excited to deliver fresh, new stores to this growing community," said Jeff Thomas, H-E-B senior vice president and general manager, Central Texas Region. "Next year, we will showcase an unprecedented investment in new stores across the greater Austin area, especially in South Austin, where our customers will soon be receiving the best and most advanced shopping experience H-E-B has to offer."

H-E-B said Wednesday that it will close the existing store at South Congress and Oltorf Street on Mar. 22. The building will be demolished to make way for a 130,000-square-foot multi-level store, complete with a beer garden and a community gathering place. It's expected to open in 2022 and in the meantime, a temporary store will operate across the street at the Twin Oaks Shopping Center, starting on Feb. 26.


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H-E-B also said it will begin construction of the new 90,000-square-foot store at U.S. 290 and FM 1826 in January. It will replace an existing H-E-B location less than two miles away in the Oak Hill area. That store is expected to open in late 2020.

The company also announced it will close its store at South First Street and William Cannon Drive on Apr. 2. H-E-B said all employees at stores that are temporarily or permanently closing will be offered positions at other H-E-B locations.

Earlier this year, H-E-B launched a digital technology hub in East Austin with plans to employ 650 workers there. That space will also serve as the headquarters for the delivery company Favor.

Two other South Austin H-E-B projects are also currently underway and scheduled to wrap up in early 2020. The 130,000-square-foot store at Slaughter Lane and Interstate 35 – which includes a barbecue restaurant – is scheduled to open on Mar. 27. And the renovations on the H-E-B Plus! on East Riverside Drive – which include adding more than 7,000 square feet to the footprint – are expected to be completed in early 2020.

H-E-B said the design of these new and renovated stores will incorporate the look and feel of their surrounding neighborhoods and will incorporate conservation elements such as rainwater harvesting, water retention ponds, enivornmentally-friendly refrigeration and solar panel installation.

H-E-B has over 50 stores in Austin and the surrounding area and has several projects planned for other parts of the city besides South Austin as well, including renovations on the East Seventh Street H-E-B and the new H-E-B Lake Austin location that is expected to open in 2021.

WATCH: The supersized H-E-B coming to Austin's South Congress


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