Hy-Vee vs Fareway - Sunday Commercials

WooBadger18

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Agreed. In the interview he did a couple months ago, he said something like "The core of our business is in the retail stores. If we have corporate employees who aren't willing to accept jobs in our retail stores, I don't want them here anyway."

Such a condescending thing from a CEO. I work as an engineer for a construction company. I'm pretty sure if they said "you're getting laid off, or you can take a job as a laborer," the decision would be an easy one.
Yeah, that was dumb, especially when he could have framed it so much better. I don’t think he would have gotten nearly the pushback if he had said something along the lines of “unfortunately we don’t need the same number of corporate employees as we have in the past. However, we care about them and have offered them these jobs if they would like to remain with us. If not, we completely understand and wish them the best.” The end result is obviously the same, but not trashing your employees seems like it would be a good bet.
 

Cyrealist

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Yeah, I was asking what kind of "retail jobs" those who were losing their "corporate jobs" were being pushed into.
Someone who worked in marketing or accounting (corporate jobs) would have to start near the bottom because there's nothing in their training or experience that would equip them to be even assistant managers. They're completely different jobs. The bottom would be stocking shelves or carrying out groceries. In the Fareway system, it's 3 years or more to become an assistant manager.
 

ScottyP

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I heard an interesting point on a podcast yesterday regarding Trader Joe's. There is some thinking that the reason TJ's is so popular is because they keep it simple. You have 1 or 2 choices for each item, which makes shopping so much simpler. Instead of stores like Wal-Mart or Hyvee, where there are 16 different brands of ketchup to pick from.
I also think that the consumer doesn't prefer the mega-store for groceries.
 

Trice

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Someone posted this in another forum. As of a year ago, Hy-Vee's market share for groceries in Des Moines was 32%, with Fareway at 10.2%. I'm not sure if there's anything in there I'd consider a surprise...perhaps Sam's Club.

But Costco nearly matched Sam's with only one location. I'm guessing having a second store will shake up the Des Moines market considerably. Throw in Fareway growing plus consumers getting spooked at higher prices and it's easy to see why Hy-Vee would be nervous. It's a bad time to have years of bad decisions coming home to roost.

 

Gonzo

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They really are cringey bad. And I'm sure they paid top dollar for them.
Hy-Vee had a great opportunity in front of it with the 5 million meals for needy families initiative. Then they completely whiffed with that horrible, self-congratulatory tailgate campaign with people oohing/aahing over the B-list celeb. Great, you can afford Donny Wahlburg. If you want to pay for a celeb, find one who's dealt with hunger in their life and have them speak to what it was like for them and what a difference an initiative like this can have, documentary style, or something. Would've brought a lot more weight and impact to the campaign IMO.
 

throwittoblythe

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Someone posted this in another forum. As of a year ago, Hy-Vee's market share for groceries in Des Moines was 32%, with Fareway at 10.2%. I'm not sure if there's anything in there I'd consider a surprise...perhaps Sam's Club.

But Costco nearly matched Sam's with only one location. I'm guessing having a second store will shake up the Des Moines market considerably. Throw in Fareway growing plus consumers getting spooked at higher prices and it's easy to see why Hy-Vee would be nervous. It's a bad time to have years of bad decisions coming home to roost.


We are Hy-Vee lifers and have been very loyal to them for our groceries for our entire adult life. However, we just got a membership to Costco in the past month. With two growing children, the potential cost savings of Costco was too enticing. So, we'll be buying less from Hy-Vee going forward.
 

urb1

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In all the years since the Urbandale HyVee put in the bath and soap department, I have never seen a customer shopping in it. Sometimes I see an employee, but never a customer.
 
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jsb

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Someone posted this in another forum. As of a year ago, Hy-Vee's market share for groceries in Des Moines was 32%, with Fareway at 10.2%. I'm not sure if there's anything in there I'd consider a surprise...perhaps Sam's Club.

But Costco nearly matched Sam's with only one location. I'm guessing having a second store will shake up the Des Moines market considerably. Throw in Fareway growing plus consumers getting spooked at higher prices and it's easy to see why Hy-Vee would be nervous. It's a bad time to have years of bad decisions coming home to roost.


Des Moines metro are just Des Moines. There aren’t many fareways in west Des Moines, for example.
 

BillBrasky4Cy

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While everyone is going bigger, Fareway seems to be going smaller. Carrying items that people will travel to the store for, instead of carrying items customers will "cherry pick" the sales on by shopping around at other stores. Typically those items you lose money on too (cereals, any kraft items, etc.) Fareway decided leading with their strong foot (meat department) was the way to go. It seems to be working.

Fareway has always went with a more no frills approach. They keep their selection/options low which helps to A.) utilize a smaller footprint store and B.) reduce their sku count and increase their inventory turns.
 
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BillBrasky4Cy

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I heard an interesting point on a podcast yesterday regarding Trader Joe's. There is some thinking that the reason TJ's is so popular is because they keep it simple. You have 1 or 2 choices for each item, which makes shopping so much simpler. Instead of stores like Wal-Mart or Hyvee, where there are 16 different brands of ketchup to pick from.

Walmart's selection is actually pretty small. It's a big store but they don't carry a lot of different brands of the same product much like Fareway.
 
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Trice

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Des Moines metro are just Des Moines. There aren’t many fareways in west Des Moines, for example.
Not clear what you're saying here...that there are fewer Fareways in the metro than Hy-Vees? Because I certainly wasn't suggesting Hy-Vee and Fareway are on the same footing.
 

DSM4Cy

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I also think that the consumer doesn't prefer the mega-store for groceries.
Hey, that's me! How'd you know? I avoid Hy-Vee like the plague. Giant parking lots jammed full, so I'm obviously not typical, but getting in and out of there is more than I want to deal with.
 

Gunnerclone

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I heard an interesting point on a podcast yesterday regarding Trader Joe's. There is some thinking that the reason TJ's is so popular is because they keep it simple. You have 1 or 2 choices for each item, which makes shopping so much simpler. Instead of stores like Wal-Mart or Hyvee, where there are 16 different brands of ketchup to pick from.

Love TJ’s. If I were closer to one I would just go there all of the time.

NOTE: supplemented by Costco
 
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alarson

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I also think that the consumer doesn't prefer the mega-store for groceries.

Yeah, if I need something on Sunday I might pop in to Hy-Vee, but it's inconvenient to have to walk through a giant parking lot, and walk through their big store to go get just a couple things.

The giant stores have their demand too, but they need more smaller stores in the mix too. The location on 60th and ashworth in WDM would be good to see replicated into more locations
 
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Pat

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Yeah, if I need something on Sunday I might pop in to Hy-Vee, but it's inconvenient to have to walk through a giant parking lot, and walk through their big store to go get just a couple things.

The giant stores have their demand too, but they need more smaller stores in the mix too. The location on 60th and ashworth in WDM would be good to see replicated into more locations

Wild. If I need one thing, I wouldn’t mind stopping at a Fareway, particularly since it’s a quick in-and-out, but if I’m shopping for the family, I want the options of Hy-Vee. Is this a big/small town thing?

I know Hy-Vee is trying to complete with Walmart and Target, but by reducing grocery choices to make room for other nonsense and going self-check, they’ve just reduced the incentives I had to go there.
 

theshadow

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Instead of stores like Wal-Mart or Hyvee, where there are 16 different brands of ketchup to pick from.

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