H-E-B Opens Third San Marcos Store on McCarty Lane

H-E-B opened its third San Marcos location on Oct. 7, expanding grocery access for residents east of I-35 and in the city's south side.

The 114,000-square-foot store at 1074 E. McCarty Lane broke ground on Nov. 4, 2025. The project represents an estimated $53 million capital investment. It created more than 400 positions, split between 212 full-time and 238 part-time roles.

The city has sought more grocery options for several years. On May 7, 2024, the San Marcos City Council adopted a resolution to support tax incentives for grocery development. This move aimed to address barriers faced by low-income residents living more than a mile from a SNAP-authorized retailer.

According to the Central Texas Food Bank, 20.3% of children in Hays County were identified as food insecure. The overall population figure for food insecurity in the county stood at 17.8%. The new store serves to alleviate access struggles for community members in the area.

The store features the city's first True Texas BBQ restaurant. The eatery serves all-natural meats smoked in-house over Texas oak wood. It also offers classic sides such as brisket beans, creamed corn, and homestyle potato salad.

Jeff Martinez, general manager of the new location, said the store is built to reflect the community it serves. "We've gone all out for you, bringing together fresh food, quality products and convenient services you know and love from H-E-B," Martinez stated.

Kathy Ham, H-E-B senior vice president for the Central Texas region, said the store deepens the company's roots in the city. "This new store represents our way of saying thank you for your years of trust, your years of loyalty and the great support that you have shown H-E-B for 71 years," Ham said.

During the ribbon-cutting ceremony on Oct. 6, H-E-B donated $10,000 each to three local organizations. The recipients were the San Marcos Education Foundation, Hays County Food Bank, and the Meadows Center for Water and the Environment at Texas State University.

The company also allocated $20,000 toward planting native trees at San Marcos High School. This funding is part of H-E-B's Trees for Texans initiative. The trees are scheduled for planting in spring 2027.

H-E-B applied for the city's incentive program before developing the site. Over the next five years, the city will provide H-E-B with a total tax rebate of approximately $2.2 million. The city, Hays County, and San Marcos CISD are projected to collect an estimated $5.5 million in sales and property taxes generated by the business.

Mayor Jane Hughson said the incentive offer remains open for future development. "We could use several more grocery stores across our city," Hughson said. The store is located in a rapidly growing area with new developments underway. A Home Depot is slated to open in 2027, and Rooms To Go is projected to open in late 2027.

H-E-B plans to open a Fresh Bites convenience store at the McCarty Lane location in spring 2027. This addition will include a fuel station and a car wash. A traffic impact analysis proposes mitigation measures, including new turn lanes and re-striped roads at the intersection, to manage increased traffic.