Hy-Vee's weirdest business decision yet?

[dmclone]

I think Hy-Vee has had a ton of screw ups over the last decade. With that said, there is a tendency for people to hate companies the bigger they get. There is also a tendency to always root for the guy in 2nd.

e.g. Like everyone else, I find Hy-Vee to be expensive, they make some dumb store decisions, their customer service has taken a hit, their delivery service has been a complete fail, etc. On the other hand, they do a lot of things right. As an overall package, they are hard to beat. Fareway meat department has better service but if you look at the total package (Meat, Seafood, Cheese Island, Deli, Bakery, Liquor, Frozen Foods, Grocery), they are hard to match in Iowa.

Then you have a place like Aldi's, which everyone seems to blow. Yes, they are dirt cheap. Basically everything else about the store sucks. Yes, some of their things are "not bad for the price". Produce sucks, meat sucks, no bakery, alcohol section sucks, etc. Yes, the few times I went, my bill was super low. A big part of this is because I couldn't find half the **** I needed.

With all of this said, I'm roughly the same distance from 2 Hy-Vee's, 2 Fareway's, Target, and Super Wal-Mart. If I'm buying beer, 86th st. Hy-Vee. If I'm buying just meat, Grimes Fareway. Normal grocery shop and don't need anything special, Wal-Mart. Big shop with a lot of needs, Grimes Hy-Vee. When Dahls was open, I would shop there for most things, strictly because of distance.

 

[Three4Cy]

Well, yeah, but you gotta wonder if HyVee hadn’t lost all that money trying to sell clothing and fancy soaps and creating upscale restaurants inside their stores, how far that money could have gone to support stores like these.

I mean, heck, their egg prices can be almost double what you pay at Target or KwikStar, there are serious profit margins visible there.

Eggs at Hy-Vee on Saturday were $1.69/dozen, and at Aldi (Mills Civic location), $2.05/dozen. Target price in WDM (West Glen location) is $1.99/dozen.

 

[throwittoblythe]

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 am in the same boat! My wife is a hy-vee lifer. She even worked for them for most of HS and college. I've struggled to show how much more we are spending in groceries because we continue to shop there. Aldi, Fareway, etc are no-go for options.

One thing I tried was a sample meal. I put together all the items we buy for tacos for our family at both Hyvee and Aldi. Aldi was about 15% cheaper on what is an already inexpensive meal option.

My biggest recent win was shifting our meat purchases. Meat is about half the price per pound at Costco compared to Hyvee. We just started stocking up on meat at Costco the past couple of months instead of buying it weekly at Hyvee. That plus cutting down the number of trips reduced our grocery bill by about 30% last month, alone (including the extra expense at Costco).

 

[BillBrasky4Cy]

Eggs at Hy-Vee on Saturday were $1.69/dozen, and at Aldi (Mills Civic location), $2.05/dozen. Target price in WDM (West Glen location) is $1.99/dozen.

I bought a 18 pack of HyVee large eggs two weeks ago at the Johnston HyVee and they were like $5. You are referencing a "sale" price, Hyvee's everyday shelf price on eggs is stupid high compared to the competition. This is a very common theme for them now, especially on everyday type things.

 

[KidSilverhair]

Eggs at Hy-Vee on Saturday were $1.69/dozen, and at Aldi (Mills Civic location), $2.05/dozen. Target price in WDM (West Glen location) is $1.99/dozen.

Hence, they “can” be. I’ve recently seen 18 eggs for near $4 at HyVee, while you could get the same at Target for around $2.50. But prices do vary, of course.

 

[carvers4math]

I think Hy-Vee has had a ton of screw ups over the last decade. With that said, there is a tendency for people to hate companies the bigger they get. There is also a tendency to always root for the guy in 2nd.

e.g. Like everyone else, I find Hy-Vee to be expensive, they make some dumb store decisions, their customer service has taken a hit, their delivery service has been a complete fail, etc. On the other hand, they do a lot of things right. As an overall package, they are hard to beat. Fareway meat department has better service but if you look at the total package (Meat, Seafood, Cheese Island, Deli, Bakery, Liquor, Frozen Foods, Grocery), they are hard to match in Iowa.

Then you have a place like Aldi's, which everyone seems to blow. Yes, they are dirt cheap. Basically everything else about the store sucks. Yes, some of their things are "not bad for the price". Produce sucks, meat sucks, no bakery, alcohol section sucks, etc. Yes, the few times I went, my bill was super low. A big part of this is because I couldn't find half the **** I needed.

With all of this said, I'm roughly the same distance from 2 Hy-Vee's, 2 Fareway's, Target, and Super Wal-Mart. If I'm buying beer, 86th st. Hy-Vee. If I'm buying just meat, Grimes Fareway. Normal grocery shop and don't need anything special, Wal-Mart. Big shop with a lot of needs, Grimes Hy-Vee. When Dahls was open, I would shop there for most things, strictly because of distance.

Our local Hy-Vee is easy to beat. They don’t even have a meat counter. Just prepackaged crap. So can’t buy just the amount you want.
Happy to drive 15 miles to Fareway.

 

[KidSilverhair]

I am in the same boat! My wife is a hy-vee lifer. She even worked for them for most of HS and college. I've struggled to show how much more we are spending in groceries because we continue to shop there. Aldi, Fareway, etc are no-go for options.

One thing I tried was a sample meal. I put together all the items we buy for tacos for our family at both Hyvee and Aldi. Aldi was about 15% cheaper on what is an already inexpensive meal option.

My biggest recent win was shifting our meat purchases. Meat is about half the price per pound at Costco compared to Hyvee. We just started stocking up on meat at Costco the past couple of months instead of buying it weekly at Hyvee. That plus cutting down the number of trips reduced our grocery bill by about 30% last month, alone (including the extra expense at Costco).

I wish we had a Costco closer to us than Coralville. I still get down there every 2 or 3 months, but I’d be thrilled if I didn’t have to make an hour round-trip to shop there.

I’m so jealous seeing Iowa City people just doing basic shopping for that day’s meal at Costco.

 

[BillBrasky4Cy]

I think Hy-Vee has had a ton of screw ups over the last decade. With that said, there is a tendency for people to hate companies the bigger they get. There is also a tendency to always root for the guy in 2nd.

e.g. Like everyone else, I find Hy-Vee to be expensive, they make some dumb store decisions, their customer service has taken a hit, their delivery service has been a complete fail, etc. On the other hand, they do a lot of things right. As an overall package, they are hard to beat. Fareway meat department has better service but if you look at the total package (Meat, Seafood, Cheese Island, Deli, Bakery, Liquor, Frozen Foods, Grocery), they are hard to match in Iowa.

Then you have a place like Aldi's, which everyone seems to blow. Yes, they are dirt cheap. Basically everything else about the store sucks. Yes, some of their things are "not bad for the price". Produce sucks, meat sucks, no bakery, alcohol section sucks, etc. Yes, the few times I went, my bill was super low. A big part of this is because I couldn't find half the **** I needed.

With all of this said, I'm roughly the same distance from 2 Hy-Vee's, 2 Fareway's, Target, and Super Wal-Mart. If I'm buying beer, 86th st. Hy-Vee. If I'm buying just meat, Grimes Fareway. Normal grocery shop and don't need anything special, Wal-Mart. Big shop with a lot of needs, Grimes Hy-Vee. When Dahls was open, I would shop there for most things, strictly because of distance.

We are fortunate to live in a metro area. Go out to some of the towns/stores that serve the rural areas and Hy-Vee has all but stopped caring about them. A lot of these stores are dated and very unkept. Just to show how little the corporate office cares about these locations, Denison, Carroll, and Harlan have one store director that oversees all three locations.

 

[carvers4math]

We are fortunate to live in a metro area. Go out to some of the towns/stores that serve the rural areas and Hy-Vee has all but stopped caring about them. A lot of these stores are dated and very unkept. Just to show how little the corporate office cares about these locations, Denison, Carroll, and Harlan have one store director that oversees all three locations.

This is spot on. They also try to destroy competition. They had a chat with the manager at the dollar store when their AE milk was 75 cents a gallon less. Also do all they can to keep Fareway from getting a good location to move into.

 

[Cyhig]

I bought a 18 pack of HyVee large eggs two weeks ago at the Johnston HyVee and they were like $5. You are referencing a "sale" price, Hyvee's everyday shelf price on eggs is stupid high compared to the competition. This is a very common theme for them now, especially on everyday type things.

Hy-Vee will have some items cheaper than their competition, and some items will be more expensive than their competition. Sometimes their competitors will have a sale to make their item cheaper than Hy-Vee, and sometimes Hy-Vee will have a sale to make their item cheaper than their competitors

Basically, there isn't a single store where items will always be the lowest price than a nearby competitor. That's why it pays to shop around and look for coupons/sales. Stock up on items with longer shelf life if there is a really good sale at a store.

Sometimes I will pay slightly more going to Hy-Vee simply because it is directly on my way home from work. I could drive a couple miles west to go to a Target, but sometimes I value convenience especially if there is very little difference in price (which is usually the case)

 

[dmclone]

We are fortunate to live in a metro area. Go out to some of the towns/stores that serve the rural areas and Hy-Vee has all but stopped caring about them. A lot of these stores are dated and very unkept. Just to show how little the corporate office cares about these locations, Denison, Carroll, and Harlan have one store director that oversees all three locations.

There is another example, where I think they lost their way. Some of those small town stores were cash cows, so they would get the best store directors, who were 100% commision. When I worked at Hy-Vee multiple store managers made more than the CEO of the company. No one wanted the big/new Des Moines/KC/Omaha stores, because they usually didn't make a lot of money in the beginning. That golden ticket of becoming store director, is what kept a lot of people at the company.

 

[BillBrasky4Cy]

Hy-Vee will have some items cheaper than their competition, and some items will be more expensive than their competition. Sometimes their competitors will have a sale to make their item cheaper than Hy-Vee, and sometimes Hy-Vee will have a sale to make their item cheaper than their competitors

Basically, there isn't a single store where items will always be the lowest price than a nearby competitor. That's why it pays to shop around and look for coupons/sales. Stock up on items with longer shelf life if there is a really good sale at a store.

Sometimes I will pay slightly more going to Hy-Vee simply because it is directly on my way home from work. I could drive a couple miles west to go to a Target, but sometimes I value convenience especially if there is very little difference in price (which is usually the case)

My point was that HyVee's "shelf price" is much higher than the competition, which is 100% fact.

 

[dmclone]

Hy-Vee will have some items cheaper than their competition, and some items will be more expensive than their competition. Sometimes their competitors will have a sale to make their item cheaper than Hy-Vee, and sometimes Hy-Vee will have a sale to make their item cheaper than their competitors

Basically, there isn't a single store where items will always be the lowest price than a nearby competitor. That's why it pays to shop around and look for coupons/sales. Stock up on items with longer shelf life if there is a really good sale at a store.

Sometimes I will pay slightly more going to Hy-Vee simply because it is directly on my way home from work. I could drive a couple miles west to go to a Target, but sometimes I value convenience especially if there is very little difference in price (which is usually the case)

100%....especially in the aisles. The profit in the food aisles used to be razor thin for every grocer, and I assume that hasn't changed. In the 90's, Hy-Vee made 1% on the combined grocery aisles(dry).
I remember that we lost money on a number of things. For example, mayonnaise was a loss leader at every store I ever worked at. I believe formula was as well.

 

[Cyhig]

My point was that HyVee's "shelf price" is much higher than the competition, which is 100% fact.

"much higher" is quite subjective, and not every product is higher than their competition. That is 100% fact

 

[khardbored]

Target did the same thing in Ottumwa, their store there was profitable, but not making enough money so they closed it down. Corporate greed at its finest, with little or no thought to how the decision effects the community.

Bring back the Ottumwa north side Hy-Vee / Target complex!!!!

 

[throwittoblythe]

100%....especially in the aisles. The profit in the food aisles used to be razor thin for every grocer, and I assume that hasn't changed. In the 90's, Hy-Vee made 1% on the combined grocery aisles(dry).
I remember that we lost money on a number of things. For example, mayonnaise was a loss leader at every store I ever worked at. I believe formula was as well.

I had a friend who was an assistant store director that confirmed this. His short version of it was "we don't make hardly anything on the groceries, but we make a killing on the hy-chi, bakery, etc."

Example: mini cupcakes. A 9-count of their "gourmet" mini cupcakes is $17.99 right now in Waukee. Even including labor+equipment, I bet those things don't cost more than $0.50 each to make.

 

[BillBrasky4Cy]

I had a friend who was an assistant store director that confirmed this. His short version of it was "we don't make hardly anything on the groceries, but we make a killing on the hy-chi, bakery, etc."

Example: mini cupcakes. A 9-count of their "gourmet" mini cupcakes is $17.99 right now in Waukee. Even including labor+equipment, I bet those things don't cost more than $0.50 each to make.

A lot of foods are small margin but snacks and beverages are bigger margin.

 

[JayV]

But trivia night is fun!

It is. But my group has had to split it up between Hy-Vee one week and another place the next week because Wahlburgers is foul and disgusting. I don't understand why it's a thing. And I won't eat the Hi-Chi until that stupid standup is no longer there.

 

[CRcyclone6]

It is. But my group has had to split it up between Hy-Vee one week and another place the next week because Wahlburgers is foul and disgusting. I don't understand why it's a thing. And I won't eat the Hi-Chi until that stupid standup is no longer there.

I was being a little sarcastic about the trivia and Wahlbergers. We've gone a couple times and it was fine. Mulligans was a better time though.

 

[JayV]

Example: mini cupcakes. A 9-count of their "gourmet" mini cupcakes is $17.99 right now in Waukee. Even including labor+equipment, I bet those things don't cost more than $0.50 each to make.

Stupid mini cupcakes. A cupcake is already a small portion of a cake. Why do we have to then go even smaller? If I want less cake, I'll cut a smaller piece of cake. Sorry if I'm off-topic. Mini-cupcakes need to come with a trigger warning around me.