H-E-B has shared plans to invest $700 million to expand its supply chain operations, a project expected to create 720 jobs by 2028 and more than 1,200 new full-time jobs over the next decade.
While not yet finalized, the retailer has identified its Foster Road campus on San Antonio’s East Side as a potential location for the expansion. Preliminary plans include construction of a bakery, refrigerated warehouse, transportation building and additional facilities, as well as an expansion of its manufacturing plant. The project will be the company’s largest investment in its manufacturing and supply-chain division.
“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,” said Carson Landsgard, H-E-B chief supply chain officer. “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.”
Project timeline and scale
Although the project is still in planning stages, construction could start later this year with facilities expected to come online as early as 2028. More than 700 new full-time jobs will be added to the local economy once operations begin, with an additional 500 full-time positions expected at the site by 2038.
If the retailer moves forward with developing its plans at the Foster Road location, it will be among the largest industrial investments in the San Antonio area. The new roles will feature a comprehensive benefits package, including medical, dental, and vision insurance, paid time off, and a 401(k) plan, as well as robust premium pay programs.
Current footprint
To support its supply chain operations, H-E-B purchased the Foster Road property, which is more than 870 acres, in 2018. Since then, the retailer has invested more than $445 million at the site, which includes the addition of a more than 2 million-square-foot warehouse and manufacturing plant already in operation. Currently, H-E-B employs nearly 1,400 H-E-B Partners at the campus.
If plans move forward at the Foster Road site, the workforce there will grow to more than 2,600 employees, and investment at the location will total well more than $1 billion.
What this means for independent grocers
For independent grocers in Texas, particularly those in San Antonio and surrounding regions, H-E-B’s continued supply chain investment signals intensifying competition on multiple fronts. The new bakery and refrigerated warehouse will likely improve H-E-B’s in-store freshness and reduce out-of-stocks on perimeter items – areas where independents have traditionally differentiated themselves.
The scale of the investment ($700 million) and employment growth (1,200+ jobs) also underscores H-E-B’s long-term commitment to Texas, making it harder for smaller operators to compete on price or selection. However, independents can still compete on personalized service, local sourcing relationships, and community connections that a large chain cannot replicate. The Foster Road expansion – focused on bakery and manufacturing – suggests H-E-B is doubling down on private label and fresh prepared foods, two categories where independents might consider strengthening their own offerings or partnering with local producers.
For Texas independents not competing with H-E-B (such as those in West Texas or the Panhandle where H-E-B has limited presence), the expansion may have less immediate impact but serves as a reminder that the state’s grocer continues to invest heavily in efficiency and scale.
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