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Hy-Vee

From Wikipedia, the free encyclopedia
American supermarket chain

Hy-Vee, Inc.
Company typePrivate,employee-owned
IndustryRetail (grocery)
Founded1930; 95 years ago (1930), inBeaconsfield, Iowa
FoundersCharles Hyde
Dwight Vredenburg
Headquarters5820 Westown Parkway,West Des Moines, Iowa
Number of locations
285+ (2022)[1]
Area served
Midwestern andSouthern United States[a]
Key people
Randy Edeker (chairman)
Jeremy Gosch (CEO &vice chairman)
ProductsBakery, catering, sushi, Asian foods, hibachi, dairy, deli, frozen foods, organic foods,bulk foods, gas, general grocery, meat and seafood, pharmacy,liquor, general merchandise, lawn & garden, floristry
ServicesStarbucks, Market Grille, Market Grille Express, HealthMarket, Health Clinics,gas station/convenience stores, car wash, Hy-Chi, Hy-Vee Drive-In Theatre, Wahlburgers
RevenueIncrease $12.0 billion (2021)[3]
Number of employees
93,000[1]
DivisionsHy-Vee Fast & Fresh
Websitehy-vee.com

Hy-Vee, Inc. (/ˌhˈv/), is anemployee-owned chain ofsupermarkets in theMidwestern andSouthern United States, with more than 280 locations inIowa,Illinois,Kansas,Minnesota,Missouri,Nebraska,South Dakota,Wisconsin, with stores planned inIndiana,Kentucky,Tennessee, andAlabama. Hy-Vee was founded in 1930 by Charles Hyde and David Vredenburg inBeaconsfield, Iowa, in a small brick building known as theBeaconsfield Supply Store, which is listed on the National Register of Historic Places.

The largest Hy-Vee stores are full-service supermarkets withbakeries,delicatessens, floral departments, dine-in and carryout food service, wine and spirits,pharmacies, salad bars, health clinics, HealthMarkets (natural and organic products) andcoffee kiosks (Caribou Coffee andStarbucks). The company maintains fuel stations withconvenience stores, fitness centers, and full-service restaurants at some of its properties, includingWahlburgers, a chain made famous by thesame-titled A&E reality series. Hy-Vee's largest store in the United States opened June 13, 2023, inGretna, Nebraska (nearOmaha), with nearly 135,000 square feet (12,500 m2) of retail space.[4] Even larger stores of 150,000 square feet (14,000 m2) are planned forZionsville, Indiana, andLouisville, Kentucky; the Zionsville store has no set opening date as of May 2024[update], while the Louisville location expected to open in 2023 was yet to be built as of June 2025.[5][6][7][8]

Hy-Vee's longtimeadvertising slogan, "Where there's a helpful smile in every aisle", was adopted for the chain's firsttelevision commercial in 1963. In the 1990s, the slogan became ajingle with music by Annie Meacham and James Poulsen. Hy-Vee is known as the "Pride of Des Moines".[9]

History

[edit]

Early years and General Supply Company

[edit]
TheBeaconsfield, Iowa Supply Store

Starting in 1917, Vredenburg & Lewis, David Vredenburg's previous partnership, operated stores as part of the General Supply Company, anRLDS Church-owned company based inLamoni, Iowa.

In 1921, Charles Hyde started working for the General Supply Company's store inWoodbine, Iowa, which was operated by Vredenburg & Lewis. In 1922, the General Supply Company was formally incorporated. Vredenburg was president and Hyde was a member of the board of directors. In 1924, Hyde left the General Supply Company and started his store inCameron, Missouri.

In 1927, Hyde purchased a half stake of a store inKellerton, Iowa, the other half being owned by the General Supply Company. In 1930, Vredenburg and Hyde started a separate partnership from the General Supply Company, named Supply Stores, and opened their first store inBeaconsfield, Iowa.

In 1932, The General Supply Company was dissolved because of the effects of theGreat Depression. Vredenburg purchased most of the former General Supply Company's remaining stores and mill. Both Hyde and Vredenburg owned and operated other stores outside of their partnership. Hyde and Vredenburg's partnership was dissolved for approximately six months in 1935 after Iowa enacted the Chain Tax Act of 1935, a heavy tax against chain stores that was later declared unconstitutional.

In 1938, Hyde & Vredenburg, Inc. was officially incorporated, with 15 stores inIowa andMissouri. The incorporation consolidated all of Hyde's and Vredenburg's independently owned stores with the stores they had in their partnership. The company was headquartered inLamoni. The new company's management plan involved autonomy for store managers, setting the stage for eventual employee ownership.

In 1945, Hyde & Vredenburg moved its corporate headquarters from Lamoni toChariton, Iowa, after acquiring the Chariton Wholesale Company.

The Supply Store name, with each town's name preceding it, was still used on most stores until 1952. A few stores were named differently, such as Hyde's Service Store, Vredenburg's Grocery, and Hyde & Vredenburg, all changed in 1952.[10][11]

1950s and 1960s

[edit]

The Hy-Vee name, a portmanteau of Hyde and Vredenburg, was adopted in 1952 as the winning entry of an employee contest, with three employees submitting the name. The first store with the name opened inFairfield, Iowa, in 1953. In 1956, Hy-Vee introduced its first private-label products and a new logo.[12] In 1957, Hy-Vee opened its first in-store bakery at theIowa City, Iowa, store.

In 1960, the company became employee-owned by the Employees' Trust Fund.[13] The slogan "Where There's a Helpful Smile in Every Aisle" was first used in a TV commercial in 1963. The company's name was officially changed to Hy-Vee Food Stores, Inc., in 1963.

In 1969, Hy-Vee expanded intoMinnesota after acquiring the Swanson Stores chain based inCherokee, Iowa. In 1969, Hy-Vee opened its first Drug Town, a pharmacy separate from a regular store, inCedar Rapids, Iowa. At the end of 1969, Hy-Vee had 66 stores.

1970s, '80s, and '90s

[edit]
A Hy-Vee Store inDubuque, Iowa, in February 2005, in a former Randall's Foods. This was remodeled and expanded in 2013.

Hy-Vee continued expanding during the 1970s and 1980s, opening stores inSouth Dakota (1975),Nebraska (1977),Illinois (1979), andKansas (1988). In 1975, Hy-Vee's 100th store, which was also its first to use electroniccash registers, opened inKeokuk, Iowa. By the end of 1989, Hy-Vee had 172 stores in seven states.[14] In 1994, Hy-Vee updated its logo.

In 1995, Hy-Vee moved its corporate headquarters from Chariton toWest Des Moines, Iowa and shortened its name to Hy-Vee, Inc. The company's primary distribution center is still in Chariton; a second one is in Cherokee, Iowa.

NFL quarterbackKurt Warner worked at a store inCedar Falls, Iowa from 1994 to 1995, before going to playarena football for theIowa Barnstormers.[15]

2000s

[edit]

At the turn of the millennium, Hy-Vee increased its focus on customers' healthy lifestyles. HealthMarket private-label products were introduced in 2001. The company also began an initiative to provide customers with the services of corporate and in-store dietitians.

Stores began offering an expanded line of ethnic foods to the Midwest's increasingly diverse population. Online shopping capabilities expanded in 2005, with a redesigned Hy-Vee website offering online shopping for such items as holiday meals, floral arrangements, and catering selections; gift cards were added in 2006.

Hy-Vee was selected as Progressive Grocer's Retailer of the Year in 2003.[16] Drug Town stores were renamed Hy-Vee Drugstores in 2005. Hy-Vee celebrated its 75th anniversary in 2005 with the publication of a second company history book (The History of Hy-Vee). In 2007, Hy-Vee's first store, inBeaconsfield, Iowa, was placed on the National Register of Historic Places.[17]

In the fiscal year 2009, Hy-Vee sales exceeded $6.3 billion; at the time, it was the second-largest employee-owned company in the United States and ranked byForbes magazine the 48th-largest privately owned company in the country.[18] More than 55,000 employees worked in the Hy-Vee family in 2009.

By the end of 2009, there were 228 stores. In 2009, Hy-Vee moved into its eighth state of operations when the store inMadison, Wisconsin, opened. In December 2009, Hy-Vee's fourth president, Randy Edeker, was selected to lead the company. Ric Jurgens retained the chairman and chief executive officer titles until 2012, when Edeker assumed those roles.

In 2003,Milan, Illinois, based grocerEagle Food Centers went out of business, and a few of their stores, such as the John Deere Road store inMoline, Illinois, became Hy-Vee stores in the late 2000s.

2010s

[edit]

In 2010, Hy-Vee expressed interest in building/opening a store inJoplin, Missouri, but the plans fell through when the developer would not negotiate traffic signal installation. Despite this, they retained interest in the area, but according to a Facebook reply in 2016, they have yet to make plans for the Joplin area.[19][20][unreliable source?]

In 2012, Hy-Vee introduced its loyalty program, Hy-Vee Fuel Saver, which allows customers to earn discounts on fuel atCasey's General Stores;Shell;PDQ/Kwik Trip, as well as Hy-Vee's own gas stations, by purchasing select items.[21][22]Later that year, Hy-Vee began adding full-service restaurants to some stores, such as the Hy-Vee Market Grille.[23]

In 2015, Hy-Vee brought online shopping to all stores with the introduction of its new website, Hy-Vee Aisles Online.[24] The company's loyalty program adopted Hy-Vee Fuel Saver + Perks branding.[citation needed]

In September 2015, Hy-Vee opened its first stores in theMinneapolis–Saint Paul metropolitan area.[25]

In 2016, Hy-Vee began opening clothing boutiques featuringTesco's F&F brand in select larger locations.[26]

In 2017, Hy-Vee became the exclusive retailer in its service area for sports nutrition products marketed byMark Wahlberg. This expanded into a deal-making Hy-Vee a franchisee forWahlburgers restaurants; the first location under the deal opened in May 2018 at theMall of America inBloomington, Minnesota.[27] In 2025, Hy-Vee announced the end of its partnership with Wahlburgers, converting all locations into Market Grille.[28]

Hy-Vee opened its first standalone HealthMarket store in 2018. Much like the in-store health department, also named HealthMarket, the standalone store focuses on health and wellness. The store is a smaller format than regular Hy-Vee stores and contains a pharmacy and attachedOrangetheory Fitness.[29]

In 2018, the first-ever Hy-Vee Dollar Fresh store opened up inOsceola, Iowa.[30] This concept offers customers in smaller communities a fresh, new product selection at low prices. Customers will find a full selection of grocery items, a bakery section with a full range of fresh-baked items, a dollar section, a Wall of Value, ready-to-eat meal offerings, and other services.

In 2018, the first Hy-Vee Fast & Fresh convenience store opened inDavenport, Iowa.[31][32] It offered standard pantry and frozen grocery items alongside fresh produce, dairy, meat, and bakery departments. It also had a gas station, online pickup, wood-oven pizzas, sushi, a craft beer station, wine and spirits section, made-to-order meals, take-and-heat meals, meal kits, and a Starbucks with a drive-thru. Unlike other Hy-Vee locations, the convenience store was not open24/7; in some markets, Hy-Vee Fast & Fresh was meant to compete withWalmart Neighborhood Market, a similar small-store concept launched in 1998.[33]

In 2019, Hy-Vee announced it would openJoe Fresh clothing sections in stores and replace its existing F&F clothing departments.[34]

2020s

[edit]
The largest Hy-Vee store, inGretna, Nebraska, opened on June 13, 2023.

On January 27, 2020, Hy-Vee agreed to acquire six formerShopko locations in Iowa that will re-open under the Dollar Fresh brand by late summer.[35]

On February 10, 2020, Hy-Vee grocery stores ended 24-hour service at most locations. Most of the 24-hour stores closed between midnight and 5 a.m., though hours varied by location. The stores still had stock crews working overnight, but the stores are not open to the public.[36]

On February 19, 2020, Hy-Vee acquired fourQuikTrip convenience store locations in the Des Moines metro that re-opened under the Hy-Vee Fast & Fresh Express brand on March 20, 2020.[37]

In August 2021, Hy-Vee announced a new standalone liquor store named Wall to Wall Wine and Spirits, with plans to open four stores inWest Des Moines, Iowa,Papillion, Nebraska,Omaha, Nebraska, andLincoln, Nebraska.[38]

In September 2021, Hy-Vee opened a 92,989-square-foot flagship store inGrimes, Iowa. The "smart store" contained new technology for Hy-Vee, including scan-and-go shopping, salad-making robot vending machines, digital shelf labels, and self-serve kiosks that allow customers to order bakery items, hot food, or fitness equipment. The store also had experimental ideas including a cigar room, a new design for the hot food area inspired by food halls, fitness equipment fromJohnson Fitness & Wellness, redesigned wine and spirits section,DSW shoe department, and nail salon named The W Nail Bar.[39][40] The same month the chain opened a similar store inEau Claire, Wisconsin. This location was the first in the state outside of theMadison area.[41][42]

In November 2021, Hy-Vee received several awards from the Technology Association of Iowa at their annual Prometheus Awards ceremony. Hy-Vee won the awards: CEO of the Year, Creative Technology Solution of the Year, and Software Development Technology Company of the Year.[3]

In December 2021, Hy-Vee expressed interest in a formerShopko location inAshwaubenon, Wisconsin by applying for liquor licenses. The nearly 125,000-square-foot store opened on November 8, 2022, becoming the largest in the chain by square footage. It was the fourth location in Wisconsin.[43]

In December 2021, Hy-Vee launched a new subsidiary, RedBox Rx, which providestelehealth online pharmacy services and home prescription delivery.[44]

In December 2021, Hy-Vee announced the closure of four locations. Two of them, one inCedar Rapids, Iowa, and one inMoline, Illinois (acquired in the 2000s as part of the Eagle Food Center bankruptcy), were to be closed permanently. A store inKansas City, Missouri, will be converted into a Wall to Wall Wine and Spirits location, and another inSioux Falls, South Dakota, will be renovated into a non-retail bakery and pharmacy fulfillment location.[45]

In December 2021, Hy-Vee announced plans to expand into four new states, with plans to open at least 21 new stores by 2025 with seven of the 21 to open no later than 2023, in the following markets:Indianapolis,Louisville, Kentucky,Huntsville, Alabama,Knoxville, Tennessee,Nashville, Tennessee, andMemphis, Tennessee.[46] Their primary competitors in theSouth will beCincinnati, Ohio-basedKroger andLakeland, Florida-basedPublix. Hy-Vee said it had no plans to open stores withinH-E-B's trade territory ofTexas. Hy-Vee plans to build a third distribution center, in Nashville, their first outside of Iowa, which will service the seven new stores and southern Missouri. Hy-Vee had originally planned to build its third distribution center inAustin, Minnesota, but put those plans on hold indefinitely.[2]

In December 2021, Hy-Vee expanded its online offering by introducing home delivery. Customers are able to purchase bulk grocery items directly from the Hy-Vee Deals website, and a pet specific website (Petship) was also launched.[47]

In February 2022, Hy-Vee opened its secondSpringfield, Missouri, store.[48]

In March 2022, Hy-Vee announced a new location inSpring Hill, Tennessee, its first location in the state.[49]

On July 27, 2022, the company announced that Randy Edeker would step down from his position as CEO, and Aaron Wiese would assume the CEO role. Randy Edeker remained chairman of the board.[50]

On April 17, 2024, Hy-Vee announced the acquisition ofStrack & Van Til stores of Highland, Indiana, adding 22 locations in northwest Indiana. The acquisition included the one Town & Country location under Strack & Van Til ownership.

Hy-Vee did not reveal the price, but spokesperson Tina Potthoff said the purchase is one of the largest in Hy-Vee's history. Potthoff said privately owned Strack & Van Til will become a subsidiary of Hy-Vee but will retain its logos, name, and branding.

Having previously announced locations in Zionsville and Noblesville for Indiana expansion, Hy-Vee said those timelines may shift, but are still in the plans for expansion. "We plan to continue to build in these areas," Potthoff said. "Due to this acquisition, we are reviewing and finalizing our construction timeline for those locations."[51]

Information and statistics

[edit]

Hy-Vee is known to move departments into separate buildings for legal requirements or optimal customer service. This is commonly seen in the construction of a separate building for Hy-Vee Gas, usually near the main store. It is also common for Hy-Vee to have attached liquor stores, as in Minnesota, where grocery stores are not allowed to sell alcoholic beverages over 3.2% alcohol by weight. In some cases, there is a completely separate building for the liquor department, such as thePrairie Village, Kansas store, where the liquor store is across the street (State Line Road) inKansas City, Missouri and thus operates under Missouri'smore liberal alcohol laws.

Hy-Vee ranked second on theNational Center for Employee Ownership's list of Largest Employee Owned Companies in 2011.[52] Hy-Vee ranked 27th onForbes magazine's annual list of the largest privately owned companies in the United States in 2017.[53] Hy-Vee ranked 27th on "Top 75 North American Food Retailers" by Supermarket News in 2016.[54] Hy-Vee ranked 4th on America's Favorite Grocery Retailers by Market Force Information in 2016.[55]

Hy-Vee won numerous awards in 2017, including recognition byForbes as one of America's Best Employers.Forbes named Hy-Vee as one of the top 50 private companies in the United States. Hy-Vee was ranked as the sixth favorite Grocery Retailer in America by Market Force in 2017. Progressive Grocer selected Hy-Vee as its Retailer of the Year in 2017, while Mass Market Retailers appointed Hy-Vee as the 2017 Retail Innovator of the Year.

In 2021, Hy-Vee was ranked byForbes magazine as the 24th largest privately owned company in the United States.[56]

As of 2021, Hy-Vee Inc. had more than 91,000 employees and 285 retail stores. It had annual sales of more than $12 billion.[3]

Presidents and CEOs

[edit]

Hy-Vee has had five Presidents and four CEOs in its 91-year history[57]

Dwight Vredenburg, son of founder David Vredenburg, became Hy-Vee's first president at age 23 and served in that role for 45 years.

  • President: 1938–1983
  • CEO: 1978–1989
  • Chairman of the Board: 1978–1989

Ron Pearson was Hy-Vee's second President and CEO. During his time, Hy-Vee expanded its services to include gas stations, dry cleaning, takeout meals, and added online shopping.

  • President: 1983–2001
  • CEO: 1989–2003
  • Chairman of the Board: 1989–2006

Ric Jurgens, Hy-Vee's third President and CEO. During this time, Hy-Vee focused on healthy living, adding pharmacies, clinics, dietitians, and health food sections to stores.

  • President: 2001–2009
  • CEO: 2003–2012
  • Chairman of the Board: 2006–2012

Randy Edeker, Hy-Vee's fourth President and CEO. Since 2012, Hy-Vee has renovated many of its stores, introduced the Hy-Vee Fuel Saver program, and emphasized expanding online shopping.

  • President: 2009–2021
  • CEO: 2012–2023
  • Chairman of the Board: 2012–2024

Jeremy Gosch, Hy-Vee's fifth President. In December 2021, Hy-Vee announced that Jeremy would be promoted to President of Hy-Vee and dual-CEO, with Randy Edeker continuing to serve as CEO and chairman of the board.[58]

  • President: since 2021[59]
  • CEO: dual CEO from 2021 to 2023, sole CEO since 2023
  • Chairman of the Board: since 2024

Sponsorships

[edit]

Hy-Vee has been a major sponsor of road racing—especially women's half marathons. The company sponsors a series of half marathons for women, which takes place in the cities of Kansas City, Omaha, Des Moines, and St. Paul.[60]

Hy-Vee previously served as the title or presenting sponsor for multiple later-defunct sporting events that included theHy-Vee Classic, a Women's Senior Tour event from 2000–2006, and theHy-Vee Triathlon, an Olympic-distance triathlon from 2007–2014.

In the Des Moines area, Hy-Vee sponsors the80/35 Music Festival as the Main Stage sponsor since 2015.[61] They sponsor theDes Moines Arts Festival[62] and theIowa State Fair.[63]

College sports

[edit]

TheIowa–Nebraska football rivalry is officially branded as the Hy-Vee Heroes Game (2011–present). Hy-Vee also is a sponsor for over 38 colleges and universities over its eight-state region. Hy-Vee also sponsored theHy-Vee Classic, an annual doubleheader inDes Moines,Iowa, involving Iowa's four Division I men's basketball teams - Iowa, Iowa State, Drake, and Northern Iowa. Hy-Vee previously served as the sponsor for theDrake Relays, an athletics event held atDrake University inDes Moines,Iowa from 2013–2019.

Motorsports

[edit]

IndyCar

[edit]

In2020, Hy-Vee began sponsoring a car for theRahal Letterman Lanigan Racing Team in theIndyCar Series forGraham Rahal at therace atIowa Speedway andSpencer Pigot at that year'sIndianapolis 500. In2021 Hy-Vee sponsoredSantino Ferrucci for five races including theIndianapolis 500 andOliver Askew for three race in the No. 45.[64] Hy-Vee was also the sponsor of the No. 45 driven byJack Harvey and a prominent associate sponsor for teammatesGraham Rahal andChristian Lundgaard in the No. 15 and 30 cars respectively. In 2025, it was announced that Hy-Vee wouldn't sponsor RLL nor serve as the title sponsor of theIowa andMilwaukeeraces.[65]

NASCAR

[edit]

In 2024, whenNASCAR returned to Iowa Speedway, Hy-Vee currently sponsors theHy-Vee PERKS 250, a race in theNASCAR Xfinity Series.[66]

Professional sports

[edit]

Hy-Vee served as a sponsor ofMajor League Baseball'sKansas City Royals from 2001 to 2016.[67] In 2009, Hy-Vee replacedPrice Chopper as the official grocery store of the NFL'sKansas City Chiefs.[68] In July 2015, Hy-Vee was named the NHL'sMinnesota Wild official grocery, pharmacy, and floral partner. Hy-Vee was named a founding partner forU.S. Bank Stadium and an official partner of the NFL'sMinnesota Vikings in August 2015. This partnership includes prominent signage in the new stadium.[69] In October 2017, Hy-Vee was named the official grocery, pharmacy, and floral partner of the NBA'sMinnesota Timberwolves, WNBA'sMinnesota Lynx, and the G-league'sIowa Wolves.[70]

Venues

[edit]

Hy-Vee purchased thenaming rights to theIowa Events Center's exhibition hall, namedHy-Vee Hall in 2001; the venue was completed in December 2004.

On May 17, 2018,The Kansas City Star reported that Hy-Vee purchased the naming rights toKemper Arena inKansas City, Missouri. The renovatedHy-Vee Arena has been converted into an adult and youth sports facility.[71]

Subsidiaries

[edit]

Throughout its history, Hy-Vee hasvertically integrated its retail operations by acquiring several companies that provide services to its stores. Hy-Vee'ssubsidiaries are:[72]

  • Midwest Heritage Bank, FSB, with branch locations and offices in Iowa
  • Lomar Distributing, Inc., a specialty food distributor based in Des Moines[74][75]
    • Acquired in 1990
  • Perishable Distributors of Iowa, Ltd., a distributor ofmeat,seafood, cheese and dairy items based inAnkeny, Iowa
    • Became an affiliate in 1982 and a subsidiary of Hy-Vee in 1990
  • D & D Foods, Inc., a supplier of freshly preparedsalads, dips, meat, and entree items based inOmaha, Nebraska
    • Originally named D & D Salads, Inc., this subsidiary was purchased in 1992
  • Florist Distributing, Inc., a distributor offlowers andplants based inDes Moines, Iowa
    • Became a subsidiary in 1992
  • Hy-Vee Construction, L.C., aconstruction company based in Des Moines[76]
    • Partially purchased Weitz Construction in 1995 and named Hy-Vee/Weitz Construction L.C. Purchased the remaining share of the company in 2013, officially forming a subsidiary.
  • A+ Communications[77]
    • Surveillance, Security Systems, and Home Audio
  • Amber Pharmacy
    • Hy-Vee Pharmacy Solutions and Amber Pharmacy began a partnership in 2009. Amber Pharmacy was fully purchased in 2014.
  • Vivid Clear Rx
    • Became a subsidiary in 2020
  • Wall to Wall Wine and Spirits
    • Became a subsidiary in 2021
  • Dollar Fresh Market

Notes

[edit]
  1. ^Stores and a Nashville distribution center are planned for Tennessee, Indiana, Kentucky, and Alabama.[2]

References

[edit]
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