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Hy-Vee to drop up to 500 more corporate-level jobs

cigaretteman

HR King
May 29, 2001
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West Des Moines-based retailer Hy-Vee — citing economic challenges and “uncertain times ahead” — said it will ask “up to 500 additional employees” to move from corporate-level jobs to retail positions at its stores.


Hy-Vee in March eliminated 121 corporate-level positions, with 102 of those employees offered retail positions at its stores.


The retailer, in a full-page advertorial in Wednesday’s Gazette, laid out the current challenges it says it and other companies in the retail food sector face.


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“In preparation for the uncertain times ahead, Hy-Vee has begun taking strategic steps to analyze spending and reduce operational costs,” the company said in its statement.


In addition to requesting some 500 Hy-Vee employees make the change to retail jobs, the company said it will be “pausing several projects — such as the new warehouse in Cumming, Iowa — to be resumed at a later date.”


“Since we are in the midst of these changes, I don’t have details on specific numbers to share with you at this time,” Tina Potthoff, senior vice president of communications, told The Gazette in an email Wednesday.


The chain in its statement noted measures already implemented in recent years that include reducing store hours, “restructuring” its store leadership by adding district director and manager positions, and reducing the number of locations that service its Aisles Online orders.


READ THE AD: See Hy-Vee’s full-page advertorial in The Gazette


In Cedar Rapids, Aisles Online grocery services now are served from its Oakland Road, Wilson Avenue, and Edgewood Road Hy-Vee locations, Potthoff wrote in March in an email to The Gazette.


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Among the sector’s current challenges, Hy-Vee cited rising inflation, increasing fuel and construction costs, and supply chain disruptions. It also noted the “pain point” direct and indirect remuneration fees that come as part of charges in connection with its pharmacy services.


Those pharmacy fees, Hy-Vee said, will “take away” more $100 million this year.


Hy-Vee in its statement did not specifically address its expansion plans into Indiana, Alabama, Kentucky and Tennessee.


“As a trusted retailer that millions of people depend on every day, we need to make adjustments to better serve our customers and our more than 93,000 employees,” Hy-Vee Chairman and CEO Randy Edeker said in the statement.


It chain also announced its Food Bank Fridays, intended to raise donations for area food banks.


The chain reports more than 280 venues in Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin, with 93,000 employees.


It closed its Collins Road NE grocery store, adjacent to Lindale Mall in Cedar Rapids, in January.

 
I've just been learning about direct and indirect renumeration fees. It's a HUGE cost that comes directly off the bottom line. 100 million this year that just vanishes. That's insane!
 
This is something government should be putting a stop to. These companies can just take money back six months after the sale. The retailer has zero chance at recouping these expenses.
 
it sounds like their conversion of the in-store restaurants to Wahlburger's has been a disaster too.
They just lost their way. A shitty clothes section. A shitty shoes section. A "restaurant". I get that they sell food they make, but the eating area should be more like a food court or what you see at the front section Costco and Sam's. They spent way too much building those out and pushing the grille concept. Meanwhile, their grocery prices having really gotten out of control to pay for all of this stupid shit and corporate fat. It is still a great store but restructuring is needed.
 
This is something government should be putting a stop to. These companies can just take money back six months after the sale. The retailer has zero chance at recouping these expenses.
Not clear what you’re talking about.
Coupons?
 
How do they have 600 corp level positions that they can just eliminate?
Some execs love to build bureaucracies. Multiple levels of people that oversea already micromanaged areas. It sort of protects them. Lots of meetings, emails, and colorized graphs and flowcharts.

my guess is a true big shot said “we are selling groceries, it isn’t rocket science, let the store managers do their job “.
 
So they make a killing off the pandemic, thought the good times would continue in perpetuity? Now facing the reality that people are eating out again.

I’m not following the pharmacy taking $100 million, what costs do those include outside of normal pharmacy operations?
 
So they make a killing off the pandemic, thought the good times would continue in perpetuity? Now facing the reality that people are eating out again.

I’m not following the pharmacy taking $100 million, what costs do those include outside of normal pharmacy operations?
I looked up “remuneration” sounds like it’s just the cost of an employee. So I don’t exactly get that.

inflation is killing HyVee. Plenty of cheaper places, all that glitz has to be paid for.
 
So they make a killing off the pandemic, thought the good times would continue in perpetuity? Now facing the reality that people are eating out again.

I’m not following the pharmacy taking $100 million, what costs do those include outside of normal pharmacy operations?
I don't get that either. Why is Hy-Vee taking a $100M hit while places like Walgreen's hum merrily along?
 
I knew a HyVee corporate lady once. She was making healthy 6 digits. Lived in relatively small town Iowa, did diddly squat. Jumped ship at the opportune time. I don't get the love for Marky Mark. That expansion and rebranding has to be killing them.
 
Our HyVee has fancy candy section. Type of thing you might splurge on if you were on vacation at a gift shop. Not sure I am going to load up on bulk/retro candy on a regular basis. Seems like they could have just made this a website offering with in store pickup.
 
Hy-Vee prices suck, their “grilles” suck, by all accounts they suck as an employer too….so as others have said they can take a long hike.

For sure lost their way, they used to be the gold standard. leadership likes to go on the news and say the corporate office does nothing for the company and it’s all the retail stores, I would say he needs to look in the mirror.
 
Google dir fees. And Walgreens and every other pharmacy gets hit with them too. They've gotten out of control this year.
 
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Remember the conversation last December when I stated the Hy-Vee Pharmacy was taking on contracts below the cost of fulfilling the medications. Looks like it is coming home to roost. Those contracts go out a year. Meaning it is only April and they have a lot of pain coming their way for the next 8 months. Stupid management.
 
They should start by getting rid of their celebrity obsessed CEO. If they offer him a one week all-inclusive trip with Mark Wahlburg as a severance payment, I’m sure he’d leave.

From the interviews I have seen their CEO is a large share of the problem. Any smart corporate employees he has would have jumped ship a while ago.

someone I knew told me they were interviewing at HyVee corporate, I advised them to withdraw, they did and found a great job elsewhere.
 
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I've just been learning about direct and indirect renumeration fees. It's a HUGE cost that comes directly off the bottom line. 100 million this year that just vanishes. That's insane!
This is something government should be putting a stop to. These companies can just take money back six months after the sale. The retailer has zero chance at recouping these expenses.
Tell us more please!
 
The problem is he has already screwed the pooch. There will be nothing left to salvage. He will have left the company with major debt in an increasing interest rate environment. This company will need to be bought out or sold within 2 years if not sooner. He is making very poor decisions and he has no one there to tell him no because he has gotten rid of anyone who dissents.
 
Well, the National Association of Chain Drug Stores disagrees with you, unless Hy-Vee has not figured out how to pass the cost along while others have. Not my gig but I assume that the fees are recouped from future sales.

Same link I just posted. If so many Bipartisan attempts are made to end it, I hardly think it's just a Hy-Vee thing. Pretty hard to pass on 100 million to senior citizens although there would be no other option other than go out of business.
 
They just lost their way. A shitty clothes section. A shitty shoes section. A "restaurant". I get that they sell food they make, but the eating area should be more like a food court or what you see at the front section Costco and Sam's. They spent way too much building those out and pushing the grille concept. Meanwhile, their grocery prices having really gotten out of control to pay for all of this stupid shit and corporate fat. It is still a great store but restructuring is needed.

And there's the right answer. I get companies want to diversify, capture new revenue sources, and engage / keep captive customers in as many ways as possible - but HyVee has f'd up immensely. None of the shit they've thrown against the wall has stuck. As a matter of fact, it has backfired on them through increased prices in their core product which drives people away. Most everyone I know just wishes HyVee would go back to the way they were. Reasonable prices when compared to the market and a simple food counter.
 
https://www.nacds.org/dir-fees/

Here is some good info. Bipartisan efforts to end or reduce the practice. It's a huge deal and every pharmacy is feeling it, not just Hy-Vee.
Its a little more than just that, they have signed insurance plans that are well below the cost of delivery. When Wal-mart refuses to sign the contracts you know there is an issue. Yes There are lots of fees in Pharmacy and they are getting worse and yes there is less money actually going to your local pharmacy, but don't cause additional pain by signing contracts that you will have a negative profit on.
 
How do they have 600 corp level positions that they can just eliminate?
Having a "Corporate level" job doesn't mean you are an executive.

For example, I don't know how many accountants Hy-Vee has - could be hundreds. It's likely each store has a couple, and the rest are "Corporate", which simply means the work at HQ. You could be an accounts payable clerk or a low-level marketing employee and still work at corporate.

The corporate HQ in West DM is a pretty big building, plus they probably have people in other buildings in the area or even corporate employees that work in a store somewhere. A company with 93,000 employees could easily have several thousand corporate employees.
 
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