Hy-Vee-What's up?

[dmclone]

The one thing that Hy-Vee and others are probably struggling with is the pace of change. For their whole history, Hy-Vee's main competitors were other grocery stores. Your options 10 years ago in the metro were mostly Hy-Vee, Dahls, and Fareway.

Now you have
Costco
Wal-Mart is finally a grocery option and also delivery
Target is finally a grocery option and also delivery
Amazon=Will soon have grocery delivery
Trader Joes
Aldi's=People are now considering this an option
Whole Foods
KwikTrip=Not all your groceries but cheap options for things like butter, milk, bread ext.

My wife is a loyal Hy-Vee shopper and has used the delivery service since day one. She constantly has issues with them missing items, not crediting her fuel saver, etc. She has tried Target delivery (actually pick-up) and she said they kill Hy-Vee when it comes to customer service.

I don't know much about Fareway but I do know that I like that Hy-Vee is willing to try new things. When I walk into most Fareway's, it's like stepping back 50 years ago. I will sometimes go there for meat but the rest of the store is depressing. If I want to be depressed, I'd rather go to Aldi's and pay less. As a car guy, it's kind of like this:

Hy-Vee=Lexus
Fareway=Toyota
Aldi=2013 Toyota Corolla
Whole Foods=Mercedes S Class
Amazon=Tesla
Wal-Mart=Nissan Leaf
Costco=Mazda CX-5
Price Chopper=Nissan Altima


Aldi's doesn't have to worry about Amazon and Whole foods because very few people cross shop a new Mercedes and a used Corolla.

Hy-Vee is still reliable and people have always paid a little more for the luxury. Except now for the same price you can buy a Tesla. With the Tesla, you may lose some of the luxury but customers are realizing that the Tesla is better in a lot of other aspects.

Fareway has always gotten away with "The ES and the Camry are basically the same car". Not sure how well this will work in the future. Do they stick with the gas engine, move to a hybrid, or go full electric? Do they just keep producing the same thing until this demographic dies out?

Price Chopper=Altima trying to compete against better sedans in an already dying market.

Costco=Sedans are dying and everyone is buying mid size SUV's and ours is the best in the segment.

Amazon believes that grocery stores are a thing of the past and the future is delivery.

 

[Sturge34]

Probably expanded things to fast and need to lean out

Heard the expansion into Minneapolis did not go very well. This has made them restructure and employees are worried and overworked now.

 

[Gunnerclone]

Sheetz is probably my favorite gas station chain in the Country. Wawa's aren't too bad-many don't sell gas though. The touchscreen MTO items are the bomb.

Have you been to Jungle Jim's grocery store? Its crazy.

Yes I’ve been to Jungle Jim’s (and it is amazing), but they don’t have them in CBus, I’ve only been in Cincy. Jungle Jim’s and Sheetz are probably the most “wanted” stores on Columbus reddit/internet.

the shittyness of the convenience stores here is a major headache for me. You can’t even go out to the burbs and find anything close to even the Casey’s on Beaver/Douglas which I consider a pretty crappy Urban/Suburban location. UDF has their ice cream thing which is fun but even the newest stores are like Kim and Go circa 1998.

 

[BillBrasky4Cy]

The one thing that Hy-Vee and others are probably struggling with is the pace of change. For their whole history, Hy-Vee's main competitors were other grocery stores. Your options 10 years ago in the metro were mostly Hy-Vee, Dahls, and Fareway.

Now you have
Costco
Wal-Mart is finally a grocery option and also delivery
Target is finally a grocery option and also delivery
Amazon=Will soon have grocery delivery
Trader Joes
Aldi's=People are now considering this an option
Whole Foods
KwikTrip=Not all your groceries but cheap options for things liek butter, milk, bread ext.

My wife is a loyal Hy-Vee shopper and has used the delivery service since day one. She constantly has issues with them missing items, not crediting her fuel saver, etc. She has tried Target delivery (actually pick-up) and she said they kill Hy-Vee when it comes to customer service.

Walmart absolutely KILLS HyVee in the online order/grocery pickup area.

 

[ISUCyclones2015]

Sheetz is probably my favorite gas station chain in the Country. Wawa's aren't too bad-many don't sell gas though. The touchscreen MTO items are the bomb.

Have you been to Jungle Jim's grocery store? Its crazy.

Sheetz will always be the best gas station to me but Buc-ee's down in Texas are a sight to behold. I went to a Wa-Wa in Richmond Virgina that sold gas. Maybe it's a new thing?

 

[CYdTracked]

So when I heard "Farnsy courtesy please" I wasn't suppose to run straight to the freezer as you couldn't hear the loudspeaker in there?

But to your first point sometimes the manager overdoes it and wants to use the whole story at all times to keep it moving. I normally worked dairy, in high school, have school the next day, I can't courtesy all night because I will be home so late trying to get pull down done.

Oh I totally get where you are coming from! I used to work in the meat dept and our manager or whoever was in charge if we were getting slammed at the full service counter would call up to the front and tell them he wasn't sending anyone. If we could spare someone at the time he'd tell us don't stay up there any more than 10-15 mins. I get why they had to do it because it was a combination of someone usually didn't show up or schedule enough help and sometimes you just can't prepare for an unexpected big wave of people so you can't have baggers just standing around doing nothing if you over-staff. I think nearly every store operates this way and it's not just Hy-Vee it's Fareway too. Even the small town grocery store I started at when I was 16 did some of this too. It's just part of retail having to balance how much staff to schedule while maximizing the staff you do have.

 

[Gunnerclone]

Sheetz will always be the best gas station to me but Buc-ee's down in Texas are a sight to behold. I went to a Wa-Wa in Richmond Virgina that sold gas. Maybe it's a new thing?

Buc-ee’s! I think they are on the verge of a big expansion.

 

[cyfan92]

Anybody else notice that fuel saver credits are way down from the past?

I'm guessing this is 100% a circle the wagons moment for cost savings.

 

[Cyinthenorth]

And maybe I’m just an old man now, but I started working there at age 14 through high school, went back after the military as a college job and back then (not THAT long ago) it was a freaking grocery store that emphasized customer service over all else. Now try finding an employee in an aisle that knows where a specific item you’re looking for is. Try finding an empty and open check out lane. Try finding a shift manager that’s not more worried about their phone or chatting with other workers. In my day you’d get written up for not greeting a customer in the aisle. Now it’s not so much a grocery store as they want it to be a lifestyle thing. Dumb.

This is exactly why I got out a couple years ago. I was in management for almost 5 years at pretty much entry level or slightly above it the entire time, despite efforts to advance including taking the advice of my bosses (more senior managers). 5 years of hard work and moving around to 3 different stores at their behest, still got me nowhere. Between that and the facts that you mention in your post about the customer service quality plummeting, the shift managers on their phones, clueless employees etc. I was miserable, this wasn't the same company I had started working for and loved back in high school. I had no choice but to look elsewhere. I could tell hy-vee was going a strange new direction, for better or worse, and I just didn't want any part of it anymore. My wife described it perfectly at the time: They aren't trying to be Hy-Vee, they are trying to be Trader Joe's.

 

[CYdTracked]

I also know that HyVee has done a lot of automation, especially for their prepared foods. I heard they can make like 8 million “take home and bake” pizzas a week in their plant and it takes like 20 people to run it. I could have those numbers off but it was something crazy and they make a KILLING on those things.

Right around 2000 or shortly after they changed their self service meat coolers to nearly all pre-packaged cuts and even some of the specialty stuff in the full service stuff that we used to make started to come pre-made too like the brats, twice baked potatoes, some of the marinated stuff, etc. I was not a fan of this because before then they were at least competitive with Fareway in terms of quality of meat but now the pre-packed stuff is so inconsistent. I'm sure they did it because the automation of pre-pack gave them better profit margins but anyone who wants to buy a good cut of meat probably found the stuff we cut and packaged on site daily much more appetizing than some of the sloppy butchering done on the pre-packed stuff they stock now.

I get my beef home raised from my in-laws and processed at their local locker these days so I rarely buy beef at a store now but if do I'll likely go to Fareway. Chicken is chicken so I'll buy that anywhere. Pork I'll buy from both Hy-Vee and Fareway depending on price and what cut I am looking for. Fareway most of the time wins out but if I am in the mood for something last minute and quick on the grill really not much difference in some cheap boneless pork chops from either store.

 

[SCyclone]

I've been in retail for a huge portion of my adult life, and I've always admired Hy-Vee for how they train their employees. Here in Fort Dodge, it's still pretty much the same in terms of store attitude.

I'll agree that some of the things they've added make me scratch my head - but competition is a *****. They were cutting edge years ago when they added deli, bakery, pharmacy, dry cleaning, floral, banking, etc. But I think it has to reach a point of satiety eventually.

I wonder how much their expansion out of state has affected their bottom line. Just the things like distribution and turnover could add up pretty quickly.

I still shop Hy-Vee 90% of the time.....but I will admit Fareway has begun to look tempting. One thing that absolutely pisses me off about Hy-vVee is - just about the time I begin to familiarize myself with the layout (what's in which aisle?), they go and remerchandise a bunch of stuff. Come on, people. The layout department at corporate jsut needs something to do?

 

[ISUTex]

I told my wife that Hy-Vee jumped the shark when they started putting bars in their grocery stores. WTF? Who bellies up at a grocery store?

 

[CYdTracked]

The one thing that Hy-Vee and others are probably struggling with is the pace of change. For their whole history, Hy-Vee's main competitors were other grocery stores. Your options 10 years ago in the metro were mostly Hy-Vee, Dahls, and Fareway.

Now you have
Costco
Wal-Mart is finally a grocery option and also delivery
Target is finally a grocery option and also delivery
Amazon=Will soon have grocery delivery
Trader Joes
Aldi's=People are now considering this an option
Whole Foods
KwikTrip=Not all your groceries but cheap options for things liek butter, milk, bread ext.

My wife is a loyal Hy-Vee shopper and has used the delivery service since day one. She constantly has issues with them missing items, not crediting her fuel saver, etc. She has tried Target delivery (actually pick-up) and she said they kill Hy-Vee when it comes to customer service.

You can probably add Menards to that list too as they have a limited section too where you can get dry goods, milk, and frozen items. KwikTrip/KwikStar is going to be direct competition for their Fast and Fresh stores. Walgreens and CVS another I just thought of too.

The 1 thing about Hy-Vee that they do probably excel in over most if not all those stores is their fresh produce section. Go compare the quality and selection at places like Wal-Mart and Target and Hy-Vee is hands down much better there. I try to avoid buying "fresh" produce at Wal-Mart because a lot of it just doesn't look very fresh to me. Hy-Vee uses a lot of local and regional vendors for their produce which is 1 area I think they've not messed up yet.

 

[Isualum13]

The one thing that Hy-Vee and others are probably struggling with is the pace of change. For their whole history, Hy-Vee's main competitors were other grocery stores. Your options 10 years ago in the metro were mostly Hy-Vee, Dahls, and Fareway.

Now you have
Costco
Wal-Mart is finally a grocery option and also delivery
Target is finally a grocery option and also delivery
Amazon=Will soon have grocery delivery
Trader Joes
Aldi's=People are now considering this an option
Whole Foods
KwikTrip=Not all your groceries but cheap options for things liek butter, milk, bread ext.

My wife is a loyal Hy-Vee shopper and has used the delivery service since day one. She constantly has issues with them missing items, not crediting her fuel saver, etc. She has tried Target delivery (actually pick-up) and she said they kill Hy-Vee when it comes to customer service.

Speaking of Aldi, that is another chain that is spending lots of money revamping stores. Granted these are just facelifts and not much as changed except for the layout and more fresh produce. For about 25 years between going with my mom as a child and now on my own things were in the same general spot no matter the location. After the remodel it took a few trips to figure out where the stuff I buy is and it varies more by location.

 

[CYdTracked]

I've been in retail for a huge portion of my adult life, and I've always admired Hy-Vee for how they train their employees. Here in Fort Dodge, it's still pretty much the same in terms of store attitude.

I'll agree that some of the things they've added make me scratch my head - but competition is a *****. They were cutting edge years ago when they added deli, bakery, pharmacy, dry cleaning, floral, banking, etc. But I think it has to reach a point of satiety eventually.

I wonder how much their expansion out of state has affected their bottom line. Just the things like distribution and turnover could add up pretty quickly.

I still shop Hy-Vee 90% of the time.....but I will admit Fareway has begun to look tempting. One thing that absolutely pisses me off about Hy-vVee is - just about the time I begin to familiarize myself with the layout (what's in which aisle?), they go and remerchandise a bunch of stuff. Come on, people. The layout department at corporate jsut needs something to do?

That last part pisses me off too! I remember our training how every store there is a logic about what aisle and order certain types of products are in because they fit a category and sort of a "flow" of how an average shopper looks for things. One example are fruit cups I buy for my kids. In 1 store they are stocked in the same place as the canned fruit and applesauce and in another they are like 3 aisles down on the shelf by some fruit snacks. Some things you need for baked goods can be the same way, the pancake mix may be in the aisle with the syrup and another store they have the syrup in a completely different area no where near the pancake mix.

 

[somecyguy]

As someone that used to work in a store and knows how the front end runs its frustrating when you bring a full cart of groceries to a checkout and there is no one there bagging them or a shift manager just standing there and sees it and not stepping in themselves to help out or calling more help up front.

This. I know that I'm paying more than I would by going to Fareway. So when I'm standing there waiting for the poor check out clerk to bag the groceries, I get really irritated. And 9/10 times, there is an asst mgr within 10 yards, looking around attempting to make himself look busy.

One area I will give them props though, is the sandwich counter. $6 for a ~9inch sub with enough meat to choke a Subway employee.

 

[cc1091]

A few reasons for putting them in smaller glasses:

1.) No one wants to pay $15 for a 22oz pour of a 10% beer. Smaller glasses keep the costs in line with other beers for the consumer.
2.) Some states have laws that don't allow you to pour high ABV in bigger glasses without a different type of liquor license.
3.) Lots of people are ignorant to the fact that a 22oz of a 10% beer can do a number on someone.

One thing my local HyVee doesn't offer is 22oz beers. They're all pints unless they're 10 oz.

 

[coolerifyoudid]

The one thing that Hy-Vee and others are probably struggling with is the pace of change. For their whole history, Hy-Vee's main competitors were other grocery stores. Your options 10 years ago in the metro were mostly Hy-Vee, Dahls, and Fareway.

Now you have
Costco
Wal-Mart is finally a grocery option and also delivery
Target is finally a grocery option and also delivery
Amazon=Will soon have grocery delivery
Trader Joes
Aldi's=People are now considering this an option
Whole Foods
KwikTrip=Not all your groceries but cheap options for things like butter, milk, bread ext.

My wife is a loyal Hy-Vee shopper and has used the delivery service since day one. She constantly has issues with them missing items, not crediting her fuel saver, etc. She has tried Target delivery (actually pick-up) and she said they kill Hy-Vee when it comes to customer service.

I don't know much about Fareway but I do know that I like that Hy-Vee is willing to try new things. When I walk into most Fareway's, it's like stepping back 50 years ago. I will sometimes go there for meat but the rest of the store is depressing. If I want to be depressed, I'd rather go to Aldi's and pay less. As a car guy, it's kind of like this:

Hy-Vee=Lexus
Fareway=Toyota
Aldi=2013 Toyota Corolla
Whole Foods=Mercedes S Class
Amazon=Tesla
Wal-Mart=Nissan Leaf
Costco=Mazda CX-5
Price Chopper=Nissan Altima


Aldi's doesn't have to worry about Amazon and Whole foods because very few people cross shop a new Mercedes and a used Corolla.

Hy-Vee is still reliable and people have always paid a little more for the luxury. Except now for the same price you can buy a Tesla. With the Tesla, you may lose some of the luxury but customers are realizing that the Tesla is better in a lot of other aspects.

Fareway has always gotten away with "The ES and the Camry are basically the same car". Not sure how well this will work in the future. Do they stick with the gas engine, move to a hybrid, or go full electric? Do they just keep producing the same thing until this demographic dies out?

Price Chopper=Altima trying to compete against better sedans in an already dying market.

Costco=Sedans are dying and everyone is buying mid size SUV's and ours is the best in the segment.

Amazon believes that grocery stores are a thing of the past and the future is delivery.

The way you describe Price Chopper in IA feels a lot like how I describe HyVee in KC. Both are trying to move in and scoop up market share, but each one not quite succeeding as much as they'd like. I assume they each face a battle of brand loyalty.

 

[Sousaclone]

Sheetz will always be the best gas station to me but Buc-ee's down in Texas are a sight to behold. I went to a Wa-Wa in Richmond Virgina that sold gas. Maybe it's a new thing?

Buc-ee's is an experience. I have never in my life seen a gas station be so busy at 7 PM on a Saturday night. Just insane.

I agree with others that I think Hy-Vee is maybe trying to do to much (granted I go to Hy-Vee maybe 1-2 times a year when I'm visiting my parents). The one right by my parents always seems cluttered and hard to shop in.

Maybe the nicest grocery store I've been to is Lowes Foods. They built one right by where we go on vacation as a family so we are constantly in that store.

 

[NickTheGreat]

I've always given HyVee credit for not being afraid to try new things. I think that adding hte healthy aisles made sense to counteract Trader Joe and Whole Foods in DSM.

The Market Grill experiment had to really sting. I feel that the Wahlbuger thing is also not going to work. 95% of people who go to eat at HyVee just want to grab their food, sit down and eat it. Nothing more.