AUSTIN – Texas retailer H-E-B has designs on a new innovation center.

The company recently announced plans to develop a technology and innovation space for the H-E-B Digital Team and Favor, an Austin, Texas-based delivery service and wholly owned subsidiary of H-E-B.

“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,” said Jag Bath, H-E-B chief digital officer and Favor CEO and president. “Bringing H-E-B and Favor closer together will allow us to promote collaboration between our two companies as we strengthen our commitment to building out H-E-B’s omnichannel services.”

The site for the new center is a recently renovated industrial warehouse in East Austin. The 81,000-sq.-ft. space is within walking distance of restaurants, breweries, coffee shops and an H-E-B store. The building will be open for business in spring 2019.

H-E-B has made several significant investments to expand the company’s digital expertise and footprint. The acquisition of Favor was part of its strategy, along with the appoint of Jag Bath and the recent hiring of Mike Georgoff as chief product officer for H-E-B Digital. H-E-B said the company maintains a strong technology and digital presence at its corporate headquarters in San Antonio and plans to continue growing its digital team in both locations.