Hy-Vee's weirdest business decision yet?

Mads4st8

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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.
As a prior poster alluded to, they are trying to boost margins. Restaurants, clothing, etc do that and they have switched the mix over time trying to find the appropriate strategy. Every comparable gricery chain is doing the same thing. And no, Aldi’s is not a comparable grocery chain. Finally, holding cash is a death sentence. They have to grow and that’s exactly what they are trying to do.
 

somecyguy

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They have to grow and that’s exactly what they are trying to do.
They are, but they suck at it. Little to no market research and they are actively separating themselves from the reputation that made them popular in Iowa/Midwest. The friendly smiles thing is hokey, but it works. I don't know anyone who gives a rat's ass about Wahlberg or cares to eat his "hamburgers". He doesn't relate the Midwestern consumer. Why spend millions to convert what were popular if plain eat-in areas into upscale full service restaurants? They completely whiffed and the market grille concept died an expensive death. The Wahlberg stuff isn't doing any better.

Maybe other large metro areas they have fared better, introducing clothing/shoes/other random items, but anecdotally from people in Minneapolis they have the same compliants.
 

CRcyclone6

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They are, but they suck at it. Little to no market research and they are actively separating themselves from the reputation that made them popular in Iowa/Midwest. The friendly smiles thing is hokey, but it works. I don't know anyone who gives a rat's ass about Wahlberg or cares to eat his "hamburgers". He doesn't relate the Midwestern consumer. Why spend millions to convert what were popular if plain eat-in areas into upscale full service restaurants? They completely whiffed and the market grille concept died an expensive death. The Wahlberg stuff isn't doing any better.

Maybe other large metro areas they have fared better, introducing clothing/shoes/other random items, but anecdotally from people in Minneapolis they have the same compliants.
But trivia night is fun!
 
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Mads4st8

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They are, but they suck at it. Little to no market research and they are actively separating themselves from the reputation that made them popular in Iowa/Midwest. The friendly smiles thing is hokey, but it works. I don't know anyone who gives a rat's ass about Wahlberg or cares to eat his "hamburgers". He doesn't relate the Midwestern consumer. Why spend millions to convert what were popular if plain eat-in areas into upscale full service restaurants? They completely whiffed and the market grille concept died an expensive death. The Wahlberg stuff isn't doing any better.

Maybe other large metro areas they have fared better, introducing clothing/shoes/other random items, but anecdotally from people in Minneapolis they have the same compliants.
By and large, I agree. Hy-Vee openly admits to a fail-fast strategy. And let’s be fair, you only really hear about the failures. Pharmacy and niche medical services have been a huge success. As does Kroger and others. It’s part of the industry in 2024.
 

Big Daddy Kang

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By and large, I agree. Hy-Vee openly admits to a fail-fast strategy. And let’s be fair, you only really hear about the failures. Pharmacy and niche medical services have been a huge success. As does Kroger and others. It’s part of the industry in 2024.
Hy-Vee's front of the house is so poorly trained i won't go there anymore. the hometown ia store and each wi store i've set foot in is fully populated with a bunch of on-their-phone, can't make eye contact. don't say hello or thank you or sorry, etc employees. Honestly, in this regard, they should take a lesson from Kwik Trip.
 

tman24

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Hy-Vee's front of the house is so poorly trained i won't go there anymore. the hometown ia store and each wi store i've set foot in is fully populated with a bunch of on-their-phone, can't make eye contact. don't say hello or thank you or sorry, etc employees. Honestly, in this regard, they should take a lesson from Kwik Trip
Sounds lovely. Unless I need something I'd love going to the store and say a word.
 

CascadeClone

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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.
How do you "support" a store that continually cant show a profit? Just throw the money from your profitable stores in the fire at the unprofitable ones?

Id imagine they tried more than a couple things to make it work, those failed, and they finally gave up. They didnt close a good sized store on a whim. That place has been called the "LowVee" at least since i came to CR 30 years ago.

The fact is HyVee is CLEARLY going after more affluent market customers. Someone said suburban and $400 carts, and that is EXACTLY what they are doing. Wahlberg is meant to appeal to the 40yo moms that have more money than time They are leaving the lower end demo to the Dollar Store type places that are beating them in that market anyway. And that location is ripe for a store like that.
 

madguy30

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Hy-Vee's front of the house is so poorly trained i won't go there anymore. the hometown ia store and each wi store i've set foot in is fully populated with a bunch of on-their-phone, can't make eye contact. don't say hello or thank you or sorry, etc employees. Honestly, in this regard, they should take a lesson from Kwik Trip.

I was just in a Kwik Trip yesterday and while I it seems like they are EVERYWHERE in WI at least they're doing it right with expanding to a literal healthier situation.

There seems to be more general grocery availability including healthy food and any that I regularly go into have had very little employee turnover so I'd guess they treat their workers well.

Sorry to drag Casey's into this but their expansion of store size/availability led to...worse employees, shottier products and bigger aisles of junk food.

The local spots in Madison at least (Metcalfes, Pick n Save/Metromarket) seem better to me so I stick with them over Hy-Vee.
 
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madguy30

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How do you "support" a store that continually cant show a profit? Just throw the money from your profitable stores in the fire at the unprofitable ones?

Id imagine they tried more than a couple things to make it work, those failed, and they finally gave up. They didnt close a good sized store on a whim. That place has been called the "LowVee" at least since i came to CR 30 years ago.

The fact is HyVee is CLEARLY going after more affluent market customers. Someone said suburban and $400 carts, and that is EXACTLY what they are doing. Wahlberg is meant to appeal to the 40yo moms that have more money than time They are leaving the lower end demo to the Dollar Store type places that are beating them in that market anyway. And that location is ripe for a store like that.

They should honestly put in a new Kwik Star/Trip there (is Kwik Star expanding like Kwik Trip?) or something.
 
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ISU22CY

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How do you "support" a store that continually cant show a profit? Just throw the money from your profitable stores in the fire at the unprofitable ones?

Id imagine they tried more than a couple things to make it work, those failed, and they finally gave up. They didnt close a good sized store on a whim. That place has been called the "LowVee" at least since i came to CR 30 years ago.

The fact is HyVee is CLEARLY going after more affluent market customers. Someone said suburban and $400 carts, and that is EXACTLY what they are doing. Wahlberg is meant to appeal to the 40yo moms that have more money than time They are leaving the lower end demo to the Dollar Store type places that are beating them in that market anyway. And that location is ripe for a store like that.
Weird play to go after the 40 year mom demographic when Target has that pretty well locked up
 

NWICY

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They should honestly put in a new Kwik Star/Trip there (is Kwik Star expanding like Kwik Trip?) or something.
KwikStar in Iowa is just KwikTrip in WI, KwikTrip renamed in Iowa to not have a problem with QuikTrip from down south that was in Iowa 1st.
The KwikTrip story is amazing to me. Their growth and store quality is pretty amazing.
 

madguy30

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KwikStar in Iowa is just KwikTrip in WI, KwikTrip renamed in Iowa to not have a problem with QuikTrip from down south that was in Iowa 1st.
The KwikTrip story is amazing to me. Their growth and store quality is pretty amazing.

Yeah and is Kwikstar expanding locations/renovations in Iowa like WI? I haven't noticed on my usual routes when I've visited but I guess I haven't paid attention.

I know Casey's has just by eye balling it and holy cow has it been a bad trend.
 

KidSilverhair

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Yeah and is Kwikstar expanding locations/renovations in Iowa like WI? I haven't noticed on my usual routes when I've visited but I guess I haven't paid attention.

I know Casey's has just by eye balling it and holy cow has it been a bad trend.
The way I was told is, Casey’s and KwikTrip had an informal agreement not to encroach on each other’s territory. Casey’s then started aggressively expanding everywhere, including into Wisconsin, so KwikTrip/KwikStar started doing the same in Iowa.

I don’t know if that’s a true story, but it seems plausible. I see KwikStars everywhere I go in Iowa, they’re building a brand new one on the North Liberty/Tiffin border, and frankly - they put Casey’s to shame quality-wise. If that is an accurate description of events, Casey’s did not make the right play.
 

madguy30

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The way I was told is, Casey’s and KwikTrip had an informal agreement not to encroach on each other’s territory. Casey’s then started aggressively expanding everywhere, including into Wisconsin, so KwikTrip/KwikStar started doing the same in Iowa.

I don’t know if that’s a true story, but it seems plausible. I see KwikStars everywhere I go in Iowa, they’re building a brand new one on the North Liberty/Tiffin border, and frankly - they put Casey’s to shame quality-wise. If that is an accurate description of events, Casey’s did not make the right play.

Kwik Trip's approach looks like 5D chess in comparison and it's not even complicated.

I still get Casey's Pizza when I visit but have had to be a little selective because a couple of them have employees that can't follow ingredient cards/directions apparently.
 
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jsb

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Yeah and is Kwikstar expanding locations/renovations in Iowa like WI? I haven't noticed on my usual routes when I've visited but I guess I haven't paid attention.

I know Casey's has just by eye balling it and holy cow has it been a bad trend.

I don't know for sure. But they've made their way into central Iowa over the last few years.
 

NWICY

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Yeah and is Kwikstar expanding locations/renovations in Iowa like WI? I haven't noticed on my usual routes when I've visited but I guess I haven't paid attention.

I know Casey's has just by eye balling it and holy cow has it been a bad trend.
The stores in Iowa are almost all new builds, the ones aren't hardly old enough to remodel. I think there is remodeled one in CR that I stopped at it was nice. KwikStar is basically kicking Casey's *ss in most markets. It seems from a customer viewpoint.
 

jsb

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And they are inept at bagging groceries!
That is a training problem.

So I was at HyVee last week and the person ahead of me had a bottle of wine. The kid bagging the groceries obviously didn't know how to pack it and as soon as the woman grabbed the bag, it broke and the wine spilled all over. I felt a little sorry for the kid, but he stood there like he had no freaking idea what to do. He started scanning my groceries. Eventually he called for someone else who then proceeded to try and mop up the liquid with paper towels (i.e. the kind you have in a bathroom vs. the Bounty type ones). Of course that did nothing. All the while, the other one is still bagging my groceries and then acts surprised that I can't leave because there's someone right in front of me.
 

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