Hy-Vee's weirdest business decision yet?

Three4Cy

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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.

 
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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.
 
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Cyhig

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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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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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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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Ms3r4ISU

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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.
Some pricing probably depends on whether name or store or generic brand, and what might be in the weekly sale ad. There are only a couple things I buy at WalMart because their price beats anywhere else, and one is the laundry detergent we use.
 

bawbie

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Agree to disagree I suppose. From about 15th to 20th Street, and say A to E Ave. Its's kind of penned in buy the 2 colleges, Franklin School and the businesses along 1st Ave. But if you live "uphill" of Franklin, then yeah its all right there.

Also the area north of Coe, between CP Road and the interstate. Go hang out at the Green Gable. Used to be where you went for "green" but now its where you go to get meth. Or robbed.

Less gang related stuff than Wellington/Bever areas (thus less shootings) but still lot of crime.

CR is weird in that you have pretty nice areas in town very close to "not so nice".
My point is that "not so nice" and "a lot of crime" are VERY relative terms. Sure it's not as nice and less safe than a new housing development in Robbins or North Liberty, but relative to truly "unsafe" places around the country - it's perfectly fine. People always act like if you drive through the wrong part of town your car is going to get stolen or you're going to get shot or robbed. It's insane and it's not true. Honestly, most of it is just pure racial prejudice.
 

bawbie

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It should be called the 19th street paradox.
I've lived on the "wrong side" of 19th for almost 20 years, y'all are crazy scared of your shadows

Coincidentally, they have some maps at the history center of 1930 era "redlining" and you'll never guess which area's people of color could buy houses in the 30s-60s and which they couldn't...
 
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Cyclone06

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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.
If the people at Hy-vee think this, they will flush through the toilet bowl faster than I can imagine. The pace of their circling increases every day. Its fallen so far.

See the price posted on the shelf, 50/50 chance that is the price that rings up.
 

BillBrasky4Cy

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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.

I think the biggest difference is all of those non food things you mentioned were small scale compared to pushing everything out without even testing the waters. The number of miscalculations have been pretty staggering.
 

Cyhig

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Yeah my sources are pretty rock solid bud.
Ok - we will have to take your word for it. I mean you haven't worked there since high school and have made no mentions of your connections. But it's the internet. We will just assume everyone has "rock solid" connections.
 
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BillBrasky4Cy

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Some pricing probably depends on whether name or store or generic brand, and what might be in the weekly sale ad. There are only a couple things I buy at WalMart because their price beats anywhere else, and one is the laundry detergent we use.

Hy-Vee's sales are really good but WalMarts every day shelf price blows Hy-Vee out of the water. The other advantage Hy-Vee has is their house brand is rock solid. The great Value quality is pretty hit and miss.
 
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JM4CY

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Went to Hyvee this weekend because I forgot an couple essentials for something I needed for mothers day breakfast. Been probably a couple years since I went to Hyvee over Fareway/Aldi. My god. I literally paid over double for the items I would of gotten elsewhere. There's literally no reason for me to shop at Hyvee.
 

BillBrasky4Cy

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Ok - we will have to take your word for it. I mean you haven't worked there since high school and have made no mentions of your connections. But it's the internet. We will just assume everyone has "rock solid" connections.
Works for me.
 

JM4CY

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Ok - we will have to take your word for it. I mean you haven't worked there since high school and have made no mentions of your connections. But it's the internet. We will just assume everyone has "rock solid" connections.
Dude, people don't lie on the internet.
 
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