Hy-Vee's weirdest business decision yet?

[Cyclones01]

I went on Sunday. It was a great event and HyVee did a great job of using it for their own branding sake, including huge seating areas on both ends of the grandstands with their logo prominently displayed.

It did seem odd to be pouring so much money into this race after the recent job cuts. However, the race sponsorship decision was probably made a long time ago. It would have been fascinating to listen to the executive conversation about why sponsorship made sense to them.

Also, are they committed to sponsor in future years too?

The decision to sponsor the race was made before the end of 2021 if not sooner. That is when they started preparing their Aisles Online teams to support integrations with Shopify, which would service new "Ship to Home" micro-sites, now listed under https://www.hy-vee.com/deals (Petship, Wholelotta Good, etc)

The decision to build all of these sites centered around the idea that the race sponsorship would be a huge success on a national scale. The hope was that the marketing would be so effective that people all over the country would flock to the Deals site and be able to order things from Hy-Vee. Things that they can already order for less money at places like Amazon, Chewy, etc.

This past March is when the layoffs and mass exodus began.

 

[KidSilverhair]

Will get those good vibrations.

 

[ZRF]

I get pretty much everything I can from Aldi, and then go to Fareway for the rest. Love shopping at Aldi though

A false perception of Aldi is that it's a cheap "generic" store, and that's the allure for most who use it. The reality is they have the best laid out store of possibly any retail operation out there. Most of the food necessities...bread, dairy, produce, etc. is on the periphery of the store. You can literally stack a cart and be out the door in 15 minute, something you can't do at Hy-vee, Fareway, etc.

The two knocks on Aldi for me are the meat (got a pork roast there once and it was rotten to the core) and checkout (can be a line). Other than that I love the store.

 

[BCClone]

Okay, to get back on track, how did the dating experiment go?

 

[AirWalke]

Okay, to get back on track, how did the dating experiment go?

It didn’t, HSTV got axed when they laid off the majority of their marketing department in March.

 

[Jer]

One data point I've heard from an IT manager at Hy-Vee is that for every Aisles Online order, Hy-Vee loses $27 of overhead, employee wages, etc. Thus why they are discontinuing it in most locations.

That had to have added up hugely over the past 2 1/2 years when it exploded in use.

 

[NickTheGreat]

One data point I've heard from an IT manager at Hy-Vee is that for every Aisles Online order, Hy-Vee loses $27 of overhead, employee wages, etc. Thus why they are discontinuing it in most locations.

That had to have added up hugely over the past 2 1/2 years when it exploded in use.

Good. Maybe I'll finally be able to shop without a teenager pulling a train of carts through the aisles!

 

[carvers4math]

My husband’s brother, who frequently drunk calls me, is my only reference point for Aisles. In DM metro, he called to complain it took them 20 minutes to bring out his order and all he got was whiskey. I am guessing maybe they don’t let a teenager bring that out. He did use Aisles frequently so he will be pissed.

 

[Three4Cy]

My husband’s brother, who frequently drunk calls me, is my only reference point for Aisles. In DM metro, he called to complain it took them 20 minutes to bring out his order and all he got was whiskey. I am guessing maybe they don’t let a teenager bring that out. He did use Aisles frequently so he will be pissed.

Have to be 18 to serve/sell alcohol in Iowa.

 

[Three4Cy]

One data point I've heard from an IT manager at Hy-Vee is that for every Aisles Online order, Hy-Vee loses $27 of overhead, employee wages, etc. Thus why they are discontinuing it in most locations.

That had to have added up hugely over the past 2 1/2 years when it exploded in use.

80% of the online business was coming from 20% of the stores, it made sense to eliminate the online shoppers in stores that weren't doing much business.

 

[CyPhallus]

The decision to sponsor the race was made before the end of 2021 if not sooner. That is when they started preparing their Aisles Online teams to support integrations with Shopify, which would service new "Ship to Home" micro-sites, now listed under https://www.hy-vee.com/deals (Petship, Wholelotta Good, etc)

The decision to build all of these sites centered around the idea that the race sponsorship would be a huge success on a national scale. The hope was that the marketing would be so effective that people all over the country would flock to the Deals site and be able to order things from Hy-Vee. Things that they can already order for less money at places like Amazon, Chewy, etc.

This past March is when the layoffs and mass exodus began.

Let's not pretend like a couple stupid ideas they ditched were the reason they sponsored the race. The biggest races in the world don't get traction on a national scale.

 

[dmclone]

I really wish Fareway would grow some balls and call out Hy-Vee in their ads. Pretty much everything they do they could make fun of in their ads.

The dumb **** Hy-Vee sells, the terrible delivery, actors telling you to buy their meat, Wahlburgers and everything involved, etc. There are just so many opportunities.

 

[carvers4math]

I really wish Fareway would grow some balls and call out Hy-Vee in their ads. Pretty much everything they do they could make fun of in their ads.

The dumb **** Hy-Vee sells, the terrible delivery, actors telling you to buy their meat, Wahlburgers and everything involved, etc. There are just so many opportunities.

Armed guards in aisle 2

 

[alarson]

I really wish Fareway would grow some balls and call out Hy-Vee in their ads. Pretty much everything they do they could make fun of in their ads.

The dumb **** Hy-Vee sells, the terrible delivery, actors telling you to buy their meat, Wahlburgers and everything involved, etc. There are just so many opportunities.

That really could make for a great series of ads if done right. And not just because it'd be funny to make fun of Hyvee, but it'd allow them to put the focus on their strengths, that they're just focused on groceries, not on extraneous stuff.

 

[Cyclones01]

Let's not pretend like a couple stupid ideas they ditched were the reason they sponsored the race. The biggest races in the world don't get traction on a national scale.

I didn't say those ideas were the reasons they sponsored the race. They were an attempt to boost revenue by being able to serve customers nationally as a result of sponsoring the race.

The effort to build them, which they have not ditched, was sold by management as "the biggest project HST has ever attempted". A significant amount of resources were assigned, and taken away from other critical efforts.

The reason they sponsored the race is in part because Randy started watching Formula One and loved the "Drive to Survive" Netflix documentary. They're also trying to expand into new states where Indy races are hosted.

 

[dmclone]

The reason they sponsored the race is in part because Randy started watching Formula One and loved the "Drive to Survive" Netflix documentary.

I really hope this isn't true. This is like comparing Mac and Cheese to Lobster.

 

[Cyclones01]

I really hope this isn't true. This is like comparing Mac and Cheese to Lobster.

The Remarkable Story Of How Hy-Vee Saved Iowa Speedway For IndyCar

How an Iowa-based supermarket chain saved Iowa Speedway and has gone "all-in" with its support for the NTT IndyCar Series.

www.forbes.com

"Edeker’s interest in IndyCar started by watching Formula One. He was intrigued by the Netflix documentary, “Drive to Survive.”

According to Edeker, the year after that series began, Formula One viewership increased 70 percent. Sixty-five percent of that increase was in the coveted 18-35 year old demographic."

Also: https://apnews.com/article/entertainment-sports-music-indycar-iowa-99c4fc36b67c72f6d44cf139b30f15ef

 

[carvers4math]

I really hope this isn't true. This is like comparing Mac and Cheese to Lobster.

I have no idea what goes on at HyVee but Randy certainly seems enamored by celebrity, which has led to some questionable business decisions

Is Caitlin Clark still getting big money?

 

[Trice]

I really wish Fareway would grow some balls and call out Hy-Vee in their ads. Pretty much everything they do they could make fun of in their ads.

The dumb **** Hy-Vee sells, the terrible delivery, actors telling you to buy their meat, Wahlburgers and everything involved, etc. There are just so many opportunities.

Their weekly ads say things like "great deals, no memberships required," taking mild jabs at retailers that require memberships - Costco, Amazon Prime, Hy-Vee Plus, I presume - so it's not like they're above it.

 

[dmclone]

Hy-Vee pumps millions into Iowa for IndyCar extravaganza

NEWTON, Iowa (AP) — The longtime premise in Iowa of “If you build it, he will come” originates with the 1989 “Field of Dreams” movie.

apnews.com

The Remarkable Story Of How Hy-Vee Saved Iowa Speedway For IndyCar

How an Iowa-based supermarket chain saved Iowa Speedway and has gone "all-in" with its support for the NTT IndyCar Series.

www.forbes.com

"Edeker’s interest in IndyCar started by watching Formula One. He was intrigued by the Netflix documentary, “Drive to Survive.”

According to Edeker, the year after that series began, Formula One viewership increased 70 percent. Sixty-five percent of that increase was in the coveted 18-35 year old demographic."

Maybe I'm different than the average but as a long time F1 fan, I have zero interest in Indy car. With that said, I think it's great of Hy-Vee to do this.