Is Hy-Vee Emblematic of What’s Happening to Traditional Grocery Stores

If an outsider were to read the press clipping about Hy-Vee for the past four years one just might think of a dog chasing its own tail.  What in the world does Hy-Vee what to be when it grows up?  Well, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Hy-Vee wants to be what it has always been: everything to everyone.  Clearly, that’s not working for any legacy grocery store.

Hy-Vee “roughly two months opened its ‘Fresh & Fast Concept they are planning more locations. New media outlets report that “In addition to the new store in Altoona, Iowa, Hy-Vee is planning to open two more locations "soon," the news outlet stated. One will be in West Des Moines, south of the freestanding Hy-Vee HealthMarket that opened last summer in the Jordan Creek Town Center, and the other in Des Moines.

The fresh-focused, smaller-format concept provides shoppers with standard products found in a typical convenience store, including fuel pumps, roller-grill favorites, frozen food and wine and spirits. The new units ff anything like the location in Davenport, they will be roughly one-tenth the size of Hy-Vee's largest grocery store, in Bloomington, Ill. And shoppers even can make their purchases in the store or through Hy-Vee's Aisles Online click-and-collect service.

At the new location, shoppers also can enjoy an "abundance of prepared meals, [and] a build-your-own-pizza bar," the Register said. It is intended to help on-the-go shoppers seeking to grab a "quick pizza" or "throw a family meal in the oven" on a day when the family needs to eat but a complete grocery-shopping trip cannot be made.”  So, what are we to think? Well not much it was just two years ago they were opening new stores with 60,000 SQFT with full-service restaurants? Why such a change in focus so fast? Were they on the worng track then or are they on the wrong track now, or should they be just adding more restaurants in the stores?

Business models evolve, brands evolve however, if success does leave clues it’s clear Hy-Vee has not pick up the right clues.  Is you brand still trying to be all things to all consumers?  How is that working for you?

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869