The company said the building will house up to 1,000 H-E-B partners and will further expand the technology base in the Alamo City.
Construction is scheduled to begin by next summer with the completion of the building expected by 2022.
H-E-B said this expansion will add 500 new jobs in San Antonio and relocate its other digital teams from across the city into one building.
With the growth of H-E-B Digital, which includes its product, design, technology and e-commerce teams, the company strengthens its position as a leading digital retailer and brick-and-mortar business.
"Our success starts with our people, who provide exceptional hospitality to deliver world-class shopping and digital experiences," said Craig Boyan, H-E-B President. "We're committed to hiring more people, adding the necessary skills to become both a better tech company and even stronger brick-and-mortar retailer."
The grocer currently has more than 1,000 partners in its San Antonio digital team, with another several hundred at its tech hub in Austin's East Side that opened up in June.
Like its sister facility in Austin, the new workspace will offer a variety of dynamic work areas spread throughout the floor plan. This will include open collaboration areas, individual workspaces, and meeting rooms equipped with advanced technology and video conferencing capabilities.
San Antonio-based Lake Flato Architects will design the project, which will boast modern amenities and cutting-edge features while incorporating design elements found throughout the Arsenal campus.
“The San Antonio tech center will be become part of the new front door to our Arsenal campus, just as H-E-B Digital is creating a new front door for our customers online and via mobile shopping experiences,” said Jag Bath, H-E-B Chief Digital Officer.
As the company accelerates toward becoming a tech leader in Texas, these efforts support their strong commitment to growing its digital team in San Antonio while continuing to invest in the city, state, and its overall workforce.
City and county leaders of San Antonio applauded the news.
"H-E-B's service to customers, commitment to community and drive for innovation are why they are so much more than a store, and why the City of San Antonio is honored and proud of this incredible growth," said San Antonio Mayor Ron Nirenberg. "Just as no store does more than our H-E-B, no city achieves more than San Antonio because of H-E-B."
“The H-E-B tech center employing 1,000 people will be a quantum step in making San Antonio a center for technology,” said Bexar County Judge Nelson Wolff.
For H-E-B, this growth is part of a companywide push to integrate more innovative technology-based services into its digital lineup.
Along with the acquisition of Favor, H-E-B continues to expand its e-commerce offerings such as H-E-B Curbside and H-E-B Home Delivery, which are expected to be avilable at over 200 locations by year’s end, and H-E-B Go, a mobile solution that allows people to scan and pay for their items with their phones.
As the largest privately-held employer in Texas, H-E-B Digital and Favor are actively hiring across all areas of expertise, including product management, product design, and software engineering. Career opportunities can be found on the H-E-B Careers and Favor websites.
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