This story from today is another indication that Hy-Vee is struggling to figure out how many stores, the size of the stores, where to put the stores, how to fulfill growing online orders and how to compete with the Aldi's and Amazon's of the world.
As you can see from this story, up to 2,000 jobs are gone by the end of this month.
Hy-Vee closing all Fullfillment Centers, more than 300 jobs at risk in Eagan, Minnesota (St Paul suburb)
Hy-Vee is also moving the opening of its Spring Lake Park MN store to this fall.
By John Ewoldt
Minneapolis Star Tribune
MARCH 9, 2020 — 5:01PM CT
Hy-Vee will close its all of its four online fulfillment centers, including one in Minnesota, later this month.
The four centers for the West Des Moines-based supermarket chain are located in
Eagan MN, Des Moines IA, Omaha NE and Kansas City MO.
More than
300 employees could lose their jobs at the Eagan MN plant, according to a Worker Adjustment and Retraining Notification issued Monday.
Some of the other locations have more than 500 employees. Hy-Vee executives didn’t provide exact numbers based on the number of employees who may be offered other work in the company. For those who do not find other work within Hy-Vee, their last day will be May 6.
“Our customers want a full assortment of products, personalized shoppers and same-day pick up at the store, which we are unable to fully provide when we process orders at a fulfillment center,” said Hy-Vee spokeswoman Christina Gayman in a statement. Operations will be transferred to the retail stores later this month so that customers’ online orders will now be filled at local Hy-Vees.
Hy-Vee’s online ordering system called Aisles Online was launched in 2015. The Eagan, Omaha and Kansas City centers opened last year. The Eagan facility was about 90,000 square feet.
About a year ago, Hy-Vee dropped plans for a distribution center in Austin, Minn., to focus on online ordering. Consumers can also use delivery services from Instacart and Shipt for Hy-Vee orders.
Other retail chains such as Albertsons, ShopRite, Loblaws, and Amazon’s new grocery store chain are switching to micro fulfillment models, which fill online orders from existing store locations, according to trade publication Progressive Grocer.
In another sign that Hy-Vee is shifting gears, its 74,000-square-foot Spring Lake Park store that was to open this spring will now open in the fall. A new store in Blaine that was making a debut in 2021 is now in a “no update” status, according to Gayman.
New stores in Columbia Heights, a second location in Maple Grove on 101st Av., Chaska, Farmington and West St. Paul also have no updates. A Wahlburgers restaurant in a franchise partnership with the Wahlberg brothers Mark, Donnie and Paul opened in February in Maple Grove.
Hy-Vee operates more than 260 stores in eight Midwestern states, including 11 in the Twin Cities.
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John Ewoldt is a business reporter for the Star Tribune. He writes about small and large retailers including supermarkets, restaurants, consumer issues and trends, and personal finance.
jewoldt@startribune.com
612-673-7633
StribEwoldt (Twitter)
LINK: http://www.startribune.com/hy-vee-c...ore-than-300-jobs-at-risk-in-eagan/568641892/