Hy-Vee, Inc.

  • Overview

Give Hy-Vee a high five for being one of the largest privately owned US supermarket chains, despite serving some modestly sized towns in the Midwest. The company runs some 235 stores in eight Midwestern states. About half of its supermarkets are in Iowa, as are most of its 20-plus Hy-Vee drugstores. It distributes products to its stores through several subsidiaries, including Lomar Distributing (specialty foods) and Perishable Distributors of Iowa (fresh foods). Other activities include construction and specialty pharmacies. Charles Hyde and David Vredenburg founded the employee-owned firm in 1930. It takes its name from a combination of its founders' names.

Geographic Reach

Hy-Vee's stores are located in Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin. The company supplies its stores from distribution centers in Chariton and Cherokee, Iowa.

Operations

In addition to its food and drug retail operations, Hy-Vee offers customers financial products. Adding to its menu of financial services, Hy-Vee subsidiary Midwest Heritage Bank in 2011 acquired Iowa-based L&K Insurance, a full-line insurance agency. L&K changed its name to Midwest Heritage Insurance Services post sale.

Financial Performance

Hy-Vee's 235 stores ring up more than $8 billion in annual sales.

Strategy

Hy-Vee is gradually expanding in several key markets in the Midwest, including Chicago, Minneapolis-St. Paul, and Madison, Wisconsin. To that end, the regional grocery chain in 2014 announced plans to enter the Twin Cities market. In 2013 the chain opened its second supermarket in Madison, after entering the Madison market in 2009. To cater to local tastes, the company says the 80,000-sq.-ft. Madison store has the largest cheese selection of any Hy-Vee supermarket. Hy-Vee is also testing a smaller-format store (about 20,000-25,000 sq. ft., with no pharmacies) in select locations. It's also adding stores in its core Iowa market, with a supermarket slated to open in Winterset in 2014.

Going beyond traditional grocery fare, Hy-Vee in 2013 acquired its joint venture partner's stake in Hy-Vee Weitz Company, a construction firm based in Des Moines. The grocery store operator renamed the company Hy-Vee Construction and plans to expand the in-house construction management group. The company also teamed up with specialty pharmacy operator Amber Pharmacy to form a new company (called Hy-Vee Pharmacy Solutions) to provide services for patients with complex and chronic health problems, including Crohn's disease, hemophilia, psoriasis, and other chronic ailments. The grocery chain has also been focusing on adding Hy-Vee Gas convenience units (some 80 locations include these), wine and spirits stores, pharmacies, and Hy-Vee HealthMarket departments.

Ric Jurgens in 2012 retired as chairman and CEO after 43-years with Hy-Vee. He was succeeded by president and COO Randy Edeker.

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Hy-Vee, Inc.


5820 Westown Pkwy
West Des Moines, IA 50266-8223
Phone: 1 (515) 267-2800
Fax: 1 (515) 2672817
www.hy-vee.com

STATS


  • Employer Type: Private
  • Chairman, President, and CEO: Randall Edeker
  • VP Management Information Systems: Eric Smith
  • SVP Marketing: Jon Wendel

Major Office Locations

  • West Des Moines, IA

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