Hy-Vee's weirdest business decision yet?

Three4Cy

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Jan 19, 2010
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Haha! Hy-Vee is only growing in regards to their footprint. The company is hemorrhaging money. HyVee can also reinvest into their stores without trying to sell me new jeans. None of those strategies have worked for them and WE are paying the price for it. I've been pretty anti WalMart my entire adult life and I can't ignore the savings anymore. Hy-Vee has made it perfectly clear they don't give a sh!t about their consumers so I've all but stopped supporting them.
All of their clothing agreements and agreements with DSW have ended, and those sections have been removed from their stores. Nobody is forcing you to shop at Hy-Vee. If you dislike the store so much, go elsewhere.

 

BillBrasky4Cy

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All of their clothing agreements and agreements with DSW have ended, and those sections have been removed from their stores. Nobody is forcing you to shop at Hy-Vee. If you dislike the store so much, go elsewhere.


Which is what I have chosen to do. I've always supported Hy-Vee going back to my high school days when I worked there. Just because the agreement has ended doesn't remove the fact that it was a another terrible business decision by the new regime.
 

BillBrasky4Cy

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Unless you work in the accounting department you don't know that. How do you know the lease agreements they're getting from the space on the stuff you have determined isn't working? They don't have to move much product to get the margins I would expect from groceries.

And typically their pricing isn't too much more terrible than say...Target. You'll notice item to item difference but in the grand scheme your total won't be much different for a cart.

You're going to find most things which are growing absolutely churn cash. Kwik Trip is spending more cash than it takes in on expansion. That company PRINTS money from operations and the land investment company spends it before it even comes in the door. A company like Menards is the exact same story.

Go ask the old senior execs like Ron Pearson and Ken Waller what they think of Hy-Vee's new model. Randy Edeker absolutely trashed Hy-Vee's business model and erased years of work by the former executive team.
 

Cyhig

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Nov 29, 2017
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Go ask the old senior execs like Ron Pearson and Ken Waller what they think of Hy-Vee's new model. Randy Edeker absolutely trashed Hy-Vee's business model and erased years of work by the former executive team.
I would like to see/read what Ron and Ken have to say about the current Hy-Vee business model. Any articles you can provide?
 

KnappShack

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May 26, 2008
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Go ask the old senior execs like Ron Pearson and Ken Waller what they think of Hy-Vee's new model. Randy Edeker absolutely trashed Hy-Vee's business model and erased years of work by the former executive team.

Perception is reality.

Hy-Vee sure seems to have a problem.

I don't find Hy-Vee to be high end enough to pay more. The stores don't have a great look and customer service doesn't exist.

But they carry a product I can get nowhere else and I do grab some sale items, but it's not our main store.

It'll always be better than Aldi. **** Aldi.
 

dmclone

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Oct 20, 2006
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Which is what I have chosen to do. I've always supported Hy-Vee going back to my high school days when I worked there. Just because the agreement has ended doesn't remove the fact that it was a another terrible business decision by the new regime.
IMO, things like DSW in a couple of stores is the least of their problems, they've been doing those types of things even when Ron Pearson was ceo. E.G. I worked at DSM#2 when they had a baseball card shop, a pizza shop, movie rentals, etc. They've been trying to push non-foods for the last 40+ years. I think Fluer has a health club? Grimes had a nail salon, WDM 1 I think had an upscale mens clothing store in the early 90's, Reichardts.
I worry more about their expansion, where their competition will be a lot better than Fareway. The only large markets that I've seen them enter and do really well is KC and Omaha.
I worry more about them outsourcing IT.

I do think it's good that the new CEO seems to be making some hard decisions, like closing unprofitable stores.

On a side note, my wife is a dedicated Hy-Vee shopper. She usually orders online and then picks up at the Grimes store. I always give her a hard time of how we can barely afford Hy-Vee. A few months ago she tried an order from Wal-Mart to see what the price difference was and I about fell over when the total at Hy-Vee was actually cheaper by like $6 on a $170 order.
 

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