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H-E-B Building Distribution Campus to Support Future Growth

Retailer closes on land deal in Hempstead, Texas, to develop several distribution facilities
Marian Zboraj, Progressive Grocer
H-e-B Hempstead
H-E-B's multi-phase plan involves developing nearly 500 acres in Waller County, Texas, to include several distribution facilities.

To support the company’s growing business, San Antonio-based H-E-B finalized a land purchase for nearly 500 acres in Hempstead, Texas, where the food retailer has plans to build a distribution campus that will be developed in multiple phases.   

The project’s first phase of construction is expected to start in late 2024. In the long term, H-E-B’s campus will include facilities to support its supply chain operations. At the Houston-area development, which is in Waller County, south of U.S. Highway 290 and east of Highway 6, its several distribution facilities will support H-E-B as it continues to grow its business across all areas of the company.

In 2024 alone, the company opened its fifth store in the DFW Metroplex, debuted stores in the San Antonio and Houston areas, and broke ground on new locations in Prosper, Dallas and Melissa.

With sales of $43 billion, H-E-B currently has more than 435 stores in Texas and Mexico. As a multi-format retailer, H-E-B operates Central Market stores throughout Texas, as well as Joe V’s Smart Shop and Mi Tienda store formats in Houston. H-E-B also owns Favor Delivery, a delivery service that serves cities across the state.

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Hempstead Texas
Hempstead, Texas, the site of H-E-B's future distribution campus, is located approximately 50 miles outside of Houston.

“The land purchase is the first step in the development of this strategically planned campus, a project that will position H-E-B to better serve our customers well into the future,” said H-E-B Chief Supply Chain Officer Carson Landsgard. “The investment demonstrates H-E-B’s commitment to communities across Texas and will give us the opportunity to create more jobs in the Hempstead area in the coming years.”

Details about the campus are still in the planning phase and will be released as the project develops. The terms of the land deal were not disclosed.

The largest privately held employer in Texas, H-E-B has more than 160,000 employees in Texas and Mexico. The company is No. 15 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.

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