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


Thu. November 16th, 2017 - by Robert Schaulis

WEST DES MOINES, IA – Just a week after news broke that Midwest-based retailer Hy-Vee had plans to introduce three new fulfillment centers, the company has announced a slate of expansions to its facilities and in-store changes to meet the demands of consumers’ changing lifestyles.

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

Hy-Vee noted in its press release that the company currently has construction projects underway across the retailer’s 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

Hy-Vee also added that it is transitioning many of its Hy-Vee Market Grill restaurants to a new Hy-Vee Market Grille Express format—wherein customers will be able to quickly order food, pay at a nearby pay station, then sit and enjoy their meal in a casual self-service, contemporary atmosphere. Express locations will offer both a convenient on-the-go eating experience and a full-service bar where customers can enjoy a variety of beverages while watching their favorite game or sporting event on TV. The company also noted the impending opening of its first Wahlburgers restaurant—the first of 26 planned Wahlburger locations.

A map of the Wahlburgers locationsWill the retailer’s expansive agenda continue to pay dividends as consumers lifestyles and shopping habits evolve? AndNowUKnow will continue to report.

Hy-Vee