HEB Plans 'Tech Facility' In East Austin Amid Amazon Inroads

EAST AUSTIN, TEXAS — Officials at San Antonio-based grocer HEB outlined plans on Wednesday to build a "world-class" tech facility in East Austin by next year employing hundreds of people.

The move comes a year after the purchase of Austin-based Whole Foods Market by Amazon, changing the landscape of the local retail industry and ushering in wide delivery distribution of grocery items as a result. Since that industry milestone, several of Whole Foods' industry rivals have had to up their technology game or risk being left behind.

HEB's response came Wednesday, with the announcement that it would lease a two-story, 81,000-square-foot office space at 2416 E. 6th St., mere blocks from its East 7th Street store. In a press advisory, HEB officials said the space would be renovated into a "creative and collaborative" work space for Austin-based partners" that include the grocer's digital team and members of its delivery service Favor.

The new facility is expected to be completed by next spring, HEB officials said.

“This state-of-the-art space will be a hub for creativity and innovation as we continue to develop the ultimate digital experience for our customers,” Jag Bath, HEB Chief Digital Officer and Favor CEO and President, said in a prepared statement. “Bringing HEB and Favor closer together will allow us to promote collaboration between our two companies as we strengthen our commitment to building out HEB’s omnichannel services.”

The planned expanded Austin footprint, will result in the hiring of "several hundred" jobs between HEB and Favor sure to benefit the local economy, officials said. As a result, officials have begun to actively hire across all areas of expertise, including product management, product design, and software engineering. Career opportunities can be found on the HEB and Favor websites.

Officials noted in hte press advisory they have made a series of announcements and strategic technology investments to further establish the company as a technology leader in Texas, including the acquisition of Favor, the appointment of Bath as HEB’s Chief Digital Officer, and the recent addition of Mike Georgoff as Chief Product Officer for HEB Digital.

"In addition, HEB continues to enhance its digital offerings with the expansion of its HEB Delivery and HEB Curbside service, which is available in more than 145 locations across the Lone Star State and is on track to reach 165 stores in 2018," officials added.

HEB is the latest to respond to the Amazon/Whole Foods industry threat. According to reports, Kroger launched a pilot program centered on grocery delivery mere weeks ago; Target bought grocery store delivery firm Shipt; and Walmart expanded its delivery system while launching a robotic program related to restocking inventory.

HEB is the largest private employer in Texas, with more than 400 stores primarily in South and Central Texas.

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