Hy-Vee now has 5 alternative store formats. Here's how they're evolving.

From a growing dollar store to a struggling health concept, the grocer has a diverse stable of banners at varying stages of growth and success.

 

Jeff Wells, GroceryDive

Oct. 6, 2021

 

Hy-Vee’s executives think a lot about what the future of its stores will look like.

 

That goes for its tried-and-true supermarket model, which is now getting a next-generation facelift. It also goes for the grocer’s stable of alternative store banners that are also adjusting to a rapidly evolving industry and consumer landscape.

 

Hy-Vee currently has five store concepts in various stages of scale and development, including a convenience store, dollar format and a recently announced alcohol outlet. In some cases, these scaled-down locations are a way to bring Hy-Vee into communities where a full-size grocery store doesn’t make sense. In others, they’re a way to gain more spending from existing customers — like the weekday warriors who want a quick lunch from Fast & Fresh, or the wellness-minded ones who value the extensive vitamin and supplement selection at its HealthMarket format.

 

Not all of the store brands are performing well, however. One of them will soon go by the wayside while another will try out a change of scenery in Hy-Vee's hometown of Des Moines, Iowa. This speaks to the perilous nature of grocers venturing beyond their core shops. But it’s also something Hy-Vee, which has embraced a willingness to fail that’s uncommon in grocery, is okay with. Asked about the failure of its first HealthMarket location, CEO Randy Edeker waved off the result, saying it was likely due to having a poor location.

 

“We picked wrong, so we’ll move on,” he said...

 

Fast & Fresh ...

 

Dollar Fresh ...

 

Fourth + Court ...

 

HealthMarket ...

 

Wall to Wall Wine and Spirits ...

 

more, including links   

https://www.grocerydive.com/news/hy-vee-5-alternative-store-formats-evolving/