New H-E-B leads retail boom in bustling Texas Hill Country town

Construction continues on the new H-E-B site on April 14, 2026 in San Marcos, Texas.

Nicholas Hernandez/MySA

San Marcos is rapidly evolving into one of the most active commercial corridors in Central Texas, as national chains, Texas-born institutions and fast-growing local brands converge along the I-35 strip.

Driven by steady commuter traffic between Austin and San Antonio, plus a growing Texas State University population, the city is seeing a wave of redevelopment along once-underutilized frontage roads, which are now being replaced by new builds and national expansions.

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From chicken chains and kolache shops to luxury outlets and grocery giants, here’s what’s now open, coming soon or expanding in the San Marcos growth zone.

I-35 drivers get their first glimpse of the upcoming San Marcos Buc-ee’s.

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Crews work on the H-E-B development on April 14, 2026 in San Marcos, Texas. 

Nicholas Hernandez/MySA

New San Marcos H-E-B takes shape

A major new retail anchor is rising along the I-35 corridor as H-E-B continues to expand its footprint in San Marcos.

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The 114,000-square-foot store at I-35 and McCarty Lane is now visibly taking shape, with walls and steel beams up, parking areas forming and interior work underway after construction began last November following a formal groundbreaking.

When it opens, expected in late 2026, the store will bring a full-service format to the east side of the highway, including pharmacy drive-thru service, curbside pickup, home delivery, an in-store bakery and meat market and prepared food offerings such as Sushiya sushi and Meal Simple entrees and appetizers.

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The location will also debut San Marcos’ first True Texas BBQ restaurant, featuring oak-smoked meats and classic sides, alongside additional amenities including a fuel station, car wash and H-E-B Fresh Bites convenience store.

Find it: 1074 E. McCarty Lane, San Marcos, TX 78666  

The exterior of Slim Chickens is shown following its grand opening in early April 2026 in San Marcos, Texas.

Nicholas Hernandez/MySA

Slim Chickens joins crowded ‘chicken wars’ along I-35

The fast-casual fried chicken race in San Marcos just added a new contender.

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Slim Chickens has officially opened, taking over the former Zaxby’s site near the Tanger Outlets corridor — a high-traffic stretch increasingly filled with national chains chasing steady I-35 commuter flow.

The Arkansas-based brand enters an already crowded market that includes Raising Cane’s and Layne’s Chicken Fingers, underscoring the continued expansion of chicken-focused fast-casual concepts in college-driven Texas cities.

The menu centers on hand-breaded tenders, wings, sandwiches and signature sauces, along with Southern-style sides like fried okra and potato salad, plus mason jar desserts built for quick-turn dining and repeat traffic.

Its positioning is equally strategic: directly off I-35 and minutes from outlet retail, the location taps commuters, Texas State University traffic and shoppers from nearby retail hubs.

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Find it: 4002 S. I-35 South Frontage Road, San Marcos, TX 78666 

San Marcos Premium Outlets in San Marcos, Texas.

Courtesy of Dancie Perugini Ware Public Relations

San Marcos Premium Outlets adds Sephora, new stores amid retail boom

Retail expansion is also continuing at San Marcos Premium Outlets, where a mix of luxury, footwear and beauty brands are rolling out new stores or preparing to open in 2026, according to a recent news release. 

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Now open is Cuadra, which brings its first U.S. outlet location to San Marcos. The leather luxury label is known for its handcrafted leather goods and western-inspired design, offering a full range of men’s and women’s merchandise, including leather boots, jackets, handbags and accessories. 

Located next to Starbucks within the center, Cuadra is already operating as part of the outlets’ latest wave of first-to-market tenants.

Several more openings are scheduled for 2026.

Birkenstock is set to open its first Texas outlet in April 2026. The German footwear company, founded in 1774, is best known for its contoured sandal design focused on comfort and orthopedic support. The outlet will carry sandals and closed-toe footwear, expanding access to one of the brand’s most recognizable global lines. It will be located next to Karl Lagerfeld Paris.

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Sephora is expected to open its doors in June 2026, adding a major beauty anchor to the shopping destination. The retailer offers a wide assortment of makeup, skincare, haircare and fragrance products, featuring both prestige brands such as FENTY BEAUTY by Rihanna, Drunk Elephant and Tatcha, along with its in-house Sephora Collection. The store will sit near Coach, further strengthening the outlets’ mix of fashion and lifestyle tenants.

A line forms outside Dos Gatos Kolache Bakery as customers wait to order from the outdoor pickup site in New Braunfels, Texas. 

Nicholas Hernandez/MySA

Dos Gatos expands along the I-35 corridor

A homegrown San Marcos brand is following the same highway-driven expansion path as national chains.

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Dos Gatos Kolache Bakery is planning its second San Marcos location, shifting from its Texas State University-area roots to a high-traffic stretch along the I-35 frontage road.

Founded by brothers Chase and Seth Katz, the kolache shop is taking over a former convenience store space for a 1,694-square-foot build-out. Texas Department of Licensing and Regulation filings show an estimated $350,000 renovation, with construction expected to begin in July and finish by November.

Kolache assortment at Dos Gatos Kolache Bakery and Coffee Shop in San Marcos, TX.

Dos Gatos Kolache Bakery and Coffee Shop

The new location will shift toward a faster service model, adding a drive-thru alongside walk-up ordering and indoor seating, a hybrid setup aimed at capturing commuter-heavy demand along one of the city’s busiest corridors.

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The site places the bakery near established traffic generators, including Pluckers Wing Bar, Texas Roadhouse, Olive Garden and Whataburger, positioning it within a dense commercial cluster serving commuters between Austin, San Antonio and Texas State University.

The expansion also builds on the company’s New Braunfels location, where a drive-thru-focused format is being tested as the brand continues scaling beyond its original campus footprint.

Find it: 1004 I-35 N. Frontage Road, San Marcos, TX 78666 

Workers continue building out the exterior of the San Marcos Buc-ee’s on April 2, 2026, with scaffolding covering the front of the structure.

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Buc-ee’s takeover continues to fuel growth

Though there’s not an official opening day set, construction is clearly progressing for the new Buc-ee’s in San Marcos.

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The massive 74,000-square-foot travel center at the southwest corner of I-35 and Yarrington Road is now in an advanced stage of construction, with exterior brickwork and surrounding roadway work taking shape as the project gets closer to completion.

Once open, the site is expected to bring the Texas-based brand’s signature mix of high-volume fueling, travel retail and food offerings to the busy I-35 corridor, with an official opening currently targeted for July 2026.

Find it: 3245 N. I-35, San Marcos, TX 78606