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H-E-B Turns Old Store Into a Parking Lot, Builds New Larger-Format Experiential Store

Commercial Development of the Year for San Antonio
H-E-B replaced one of its older stores in the greater San Antonio area with a 122,222-square-foot location that includes a two-story barbecue restaurant. (CoStar)
H-E-B replaced one of its older stores in the greater San Antonio area with a 122,222-square-foot location that includes a two-story barbecue restaurant. (CoStar)

H-E-B replaced one of its older stores in the greater San Antonio area with a 122,222-square-foot location that includes a two-story barbecue restaurant as the grocer rolls out its larger-format experiential store strategy.

The H-E-B Plus at 651 S. Walnut Ave. in New Braunfels, Texas, which is about 35 miles northeast of downtown San Antonio along the Interstate 35 corridor, brought 150 new jobs to the area. Those jobs were in addition to the more than 300 workers who transitioned over from the original store, which is now the parking lot.

The H-E-B Plus includes ample curbside pickup spots to allow for the growing popularity of the consumer preference. San Antonio-based H-E-B is the largest privately held employer in Texas and operates more than 430 stores in Texas and Mexico, recording more than $38 billion in annual sales.

H-E-B added the most new square footage for grocery stores in the nation in 2022, with about 1.2 million square feet of space comprising 12 new locations coming online, according to JLL's annual U.S. Grocery Tracker report. H-E-B is moving "away from its standard 50,000-square-foot format to footprints of more than 100,000 square feet that allow for a more experiential store with unique offerings such as tortillerias, BBQ restaurants and garden departments," according to JLL.

About the project: The new H-E-B in New Braunfels includes a two-story True Texas Barbecue restaurant and a new Home by H-E-B department, which offers furniture and other home decor items. The project earned a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.

What the judges said: “H-E-B continues to innovate in the grocery space, smashing the competition and engaging with the community,” said Sarah Esserlieu Khalil, director of economic development with Centro San Antonio.

The store provides "the needed elements to support growth along the I-35 corridor," said Bryan Sethney with Cushman & Wakefield.

“Not only will it bring jobs to the city, but it will have a long-term impact on New Braunfels,” said Tom Long, managing director of industrial for Greater:SATX.

They made it happen: H-E-B Valley Regional Manager Jessica Cain oversaw the development of the new grocery store in New Braunfels. The store was designed by Selser Schaefer Architects.

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