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Hy-Vee Announces Nearly 300,000 Square Feet of Facilities Expansion Projects

Hy-Vee Announces Nearly 300,000 Square Feet of Facilities Expansion Projects

Thursday, November 16th, 2017

Trailing the news that Hy-Vee intends to introduce three new fulfillment centers, the Midwest-based company has even newer news to bring to its consumers: expansions to its facilities. The company's in-store changes are aiming to address the constantly shifting consumer lifestyles, which relays into evolving demands.

Randy Edeker, Chairman, CEO, and President, Hy-Vee“This fiscal year, we have approved one of our largest capital expenditure budgets in our company’s history to make sure we are not only meeting our customers’ needs, but fulfilling their wants, now and in the future,” said Randy Edeker, Chairman, CEO, and President, in a press release. “We’ve studied customer habits and lifestyles and know that fewer people are cooking meals at home than ever before. We want our offerings to help individuals who are looking for something healthy to eat on the go as well as families who want to enjoy a sit-down meal that they can easily claim as their own.”

Hy-Vee's Fast & Fresh Concept

In the company's press release, it expressed current construction is underway in its eight-state region. Major projects include:

  • Construction of a 240,000-square-foot production facility in Ankeny, Iowa, which will serve as a commissary and central bakery as Hy-Vee offers more fresh prepared options and meal kits to its customers. The project also includes an expansion of Hy-Vee’s subsidiary PDI
  • Construction of a 48,000-square-foot production facility that will support Hy-Vee’s Short Cuts produce brand. The facility, which is adjacent to Hy-Vee’s current distribution center in Chariton, Iowa, will produce fresh cut, retail-ready fruits and vegetables for customers beginning in January 2018
  • Construction of Hy-Vee’s new 10,000-square-foot convenience and meal solutions stores, named Fast & Fresh, in the Des Moines area and Davenport, Iowa. These stores will feature grocery items, fresh prepared foods and a coffee shop. Another type of small store concept will open in West Des Moines, Iowa, in 2018
  • Additionally, the company noted that its planned e-commerce fulfillment centers in Kansas, Twin Cities, and Omaha—in addition to an existing fulfillment center in Des Moines—will meet the needs of the company’s growing online ordering service

In addition to the changes being made to the company's facilities, Hy-Vee has announced an transition in its restaurant format from Hy-Vee Market Grill to Hy-Vee Market Grille Express, where customers can order food, pay at a nearby pay station, and then sit to enjoy their meal in an ambiance marked with casual, self-service, and contemporary influences. While the Express location offers on-the-go eating experiences for those looking for conveince, it also caters to those with more time on their hands.

A map of the Wahlburgers locations

Consumers looking to fill their leisure with delicious food can head to the Express for a full-service bar and televised sporting events to their liking. But, the icing on top of the cake -- or maybe I should say bun on top of the patty–is that the company has its first of 26 planned Wahlburgers Wahlburgers restaurant locations in the works.

Will the retailer’s expansive plans continue to pay dividends as consumers' lifestyles and shopping habits change? Deli Market News will continue to report.


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