|Only days before its commercial leases expire on a warehouse in Schertz, TX, San Antonio-based CST Brands Inc. is unveiling a 365,000-square-foot distribution on the city’s Northeast Side. According to local news sources, the company plans to use this big change to fuel a significant expansion plan throughout Texas.Located at 19500 Bulverde Road, the new warehouse is more than three times the size of their previous facility, featuring 42,000 square feet of refrigerated space. The company plans to store around 4,744 unique products, including 528 types of candy and 900 grocery items, which will service around 600 of the convenience store retailer’s locations.
This change is only the latest for CST Brands, which has seen significant progress in recent years. For example, the company opened 38 stores in the U.S. and Canada last year. Now, CST Brands is planning to build another 35 to 40 locations in the coming year and will need facilities to support this further growth.
According to company representatives, the smaller size of their previous, leased warehouse was already limiting their operations. By doubling the size of their storage facility, the company hopes to improve the freshness and quality of their store’s inventory. However, despite their increase in size, CST Brands may soon miss some of the benefits of leasing a warehouse.
Then again, CST Brand’s change could be beneficial to the San Antonio area: because the company’s trucks made more than 90,000 store deliveries and covered about 2.6 million miles, they expect to hire three dozen additional warehouse workers to support their operations.
Other changes to the company include the addition of approximately 146,000 square feet of office space, which will serve as CST’s future headquarters. Their current headquarters are located at the Valero corporate campus in Palo Alto, CA but only take up 83,000 square feet. The new location will feature a prototype Corner Store, which will allow the company to test new products, train employees and serve customers in the area.
CST Brands attributed the purchase of its new property, which cost $43 million, to $2 million in property tax abatements and cash grants from the city and county. These incentives will require CST to retain an existing 305 full-time jobs and create an additional 100 new positions. The company’s relocation is expected to be completed by June 2016.