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

[joelbc1]

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.

Hy Vee plucked the pooch when it decided to sell DSW shoes “in store.”
DSW sells shoes that are minimally two YEARS out of production. I understand there is CC a market fir such outdated shoes but wgy in God’s name would a grocier want to mess with outdated styles and colors of shoe? My opinion… Hy Vee went abridge too far there. There Wahlburger gamble was a reach but the DSW idea was just a bad one.
The one thing Hy Vee has been able to do is admit their mistakes and correct them quickly…. We shall see.

 

[THE_DEVIL]

Hell is coming for some.

 

[Joes Place]

Not to mention each one has a secretary administrative assistant mistress.

😉

 

[Joes Place]

I wonder. Granted, I'm in the CR area, not a big market, but I haven't seen anything outlandish at the local Hy-Vees. Maybe you're right - they got away from their market and lost money. But if that were true they could simply eliminate those activities to cut their losses.

On the other hand, if competition is eating (pun intended) into their market share, you can't just change that with a few changes. It doesn't seem that long ago that if you wanted to buy groceries in this area, you went to HyVee ... end of story. Sure, there were some weak competitors. Now we have Fareway, Aldi, WalMart, Target, Dollar General - all taking a piece of the pie.

I'll tell you what I'd have done, were I a "Hy Vee" marketing VP.

Dig into the market share for the "fresh meal prep delivery" market.

Make an app that people can log into and view meal options for the week; if they see one or two they like, they can buy via the app and sign up for a 15 min drive-through pickup window.

Meals are just like all the easy prep stuff you see so many places doing, but Hy Vee deli/bakery/whatever packs up the bags/boxes for convenient pickup. You send them a text/confirmation when you're within 30 minutes of driving up. You drive up, they scan a QR code on your app that you hold up and they hand you the bag.

Eliminates the expensive shipping element that those home-delivery services have so you can invest more in the dinners. People can see the weekly menu and "sign up" for stuff they like so that it's ready for pickup whenever.

And the markups for that stuff are really high - with much of it going to delivery, that you're entirely eliminating and coordinating a very convenient drive-up/drive-thru option.
You could even add a feature for "+1/+2/+3"...etc for larger families that increase portion sizes. Eliminates much of the thinking/shopping and having to store anything. Working parents can pick up on the way home from work. Make the app able to send you a "ping" when to get in the drive-thru line to minimize waiting - when they ping you, you drive through and out within a couple minutes.

Quit trying to spread out into markets you don't really play in; focus on the ones you do play in, and the businesses who are taking some of that share thru "mail to you meals".

 

[anon_b29nm7v7dwp6r]

Good post - and remember, Hy Vee is 100% employee owned. So, those chuckling at Hy Vee's misfortunes should consider that as well.

Well from what I’ve seen in the news and heard from people that work(Ed) there, they treat their employees like junk….so they have a heck of a way of showing it.

 

[Joes Place]

Well from what I’ve seen in the news and heard from people that work(Ed) there, they treat their employees like junk….so they have a heck of a way of showing it.

"Employee owned"
vs

"Employees: Pwned!!!!"

 

[DooBii]

Well from what I’ve seen in the news and heard from people that work(Ed) there, they treat their employees like junk….so they have a heck of a way of showing it.

I really think a lot of that is sour grapes. They've always treated me well and in any situation they have always done what is right with me.

 

[RonaldMexico]

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.

LMAO. Care to make a bet on that?

 

[An Iowa fan]

I really think a lot of that is sour grapes. They've always treated me well and in any situation they have always done what is right with me.

Of course it is sour grapes. I know people that have stayed years with Hy-Vee and retired from there Some transferred to other stores while receiving promotions.
Always stay away from negative people. It does you no good. Hang around and do business with positive, ambitious people.

 

[CesspoolHawk]

Of course it is sour grapes. I know people that have stayed years with Hy-Vee and retired from there Some transferred to other stores while receiving promotions.
Always stay away from negative people. It does you no good. Hang around and do business with positive, ambitious people.

As someone who worked at corporate and left a few years back, the entire culture has changed and it is all on Randy. They bragged about never letting people go and always promoting from within at corporate. They started to change that by moving people with years of experience to demeaning roles instead of helping train them to new technology or positions. Some did need to be let go like all companies, so they hurt themselves historically by not cutting dead weight. But many good, high seniority level and highly compensated people were deemed no longer of value because new technology replaced them, and training to new things was not in HV’s interest. Hell, many of these people helped them move to these new things with their legacy knowledge.

There were many internally who knew small towns and many big towns didn’t want to move away from the grab your food and sit down on your own style cafeteria. But Randy and his higher ups pushed new new new. The old management there also didn’t like to relay negative or disagreeing messages by the younger / new hires. Not to mention, the high amount of hiring they did in the last 5 or so years made the old timers upset as ate into their quarterly bonus. Always fun hearing “my bonus check is smaller because of all you new guys chuckle chuckle”.

 

[MitchLL]

As someone who worked at corporate and left a few years back, the entire culture has changed and it is all on Randy. They bragged about never letting people go and always promoting from within at corporate. They started to change that by moving people with years of experience to demeaning roles instead of helping train them to new technology or positions. Some did need to be let go like all companies, so they hurt themselves historically by not cutting dead weight. But many good, high seniority level and highly compensated people were deemed no longer of value because new technology replaced them, and training to new things was not in HV’s interest. Hell, many of these people helped them move to these new things with their legacy knowledge.

There were many internally who knew small towns and many big towns didn’t want to move away from the grab your food and sit down on your own style cafeteria. But Randy and his higher ups pushed new new new. The old management their also didn’t like to relay negative or disagreeing messages by the younger / new hires. Not to mention, the high amount of hiring they did in the last 5 or so years made the old timers upset as it are into their quarterly bonus. Always fun hearing “my bonus check is smaller because of all you new guys chuckle chuckle”.

My neighbor, who retired a few years ago from Hy Vee, pretty much said the same thing you just did.

He really doesn't talk fondly of the current CEO... and it's not sour grapes, imo.

 

[bunsen82]

LMAO. Care to make a bet on that?

Yes I will take that bet. Healthy companies do not cut 650 people then try to blame it on the pharmacy. The issue is the pharmacy has been the golden goose for Hyvee for years and it is no longer carrying the stores like it use to. What is going to change the margin compression in the pharmacy? Signing better contracts is a start, but the margin compression is still there. They may limp along longer than I expect but things are tightening and we have been in a period with more Money to be spent than any time in the last 20 years and Hyvee still is struggling. I knew about the cuts yesterday. As to sour grapes- I can tell you Hyvee has let go off some really good people. They got rid of a couple rotten apples in the restructuring but you can ask anyone if things are better now than 10 years ago and they will all tell you it is much much worse. Individuals made careers working at Hyvee, those days are likely gone. The 20 and 30 year associates have either been let go or retired or left due to increased stress. I know the one individual works at a distribution center, and honestly everything may be ok for him, however the individuals I know have all left and they ranged from management up to the home office.

 

[Tfxchawk]

Sad when they went away from taking care of the employees who would then take care of the stores and the customers. It's just another job now at the retail level. Not a place where a person can work and retire fairly well off. Shame

 

[kwik44]

There are plenty of people that love to criticize and laugh at individuals or companies
that take risks or gambles and it doesn't work out. I really don't understand why. People love to say " well I knew that wouldn't work and act like they "know it all".
These are people that wouldn't take a chance on something come hell or high water.

There are plenty of people that love to criticize and laugh at individuals or companies
that take risks or gambles and it doesn't work out. I really don't understand why. People love to say " well I knew that wouldn't work and act like they "know it all".
These are people that wouldn't take a chance on something come hell or high water.

HyVee is trying to rectify their mistake and it will take time. Of course maybe they can't correct things for the better. Sometimes mistakes take you down.

This country is really getting into a tough environment for businesses. Hell is coming for some.

Yep, and America is drawing down the shades for many, except for a select few.

 

[bunsen82]

Yep, and America is drawing down the shades for many, except for a select few.

Hyvee is a case of group think and tribalism. If you did not agree with the CEO‘s vision or method you were immediately casted aside. Dissenting opinions or trying to look at things from a different viewpoint were and are not tolerated.

 

[joelbc1]

There are plenty of people that love to criticize and laugh at individuals or companies
that take risks or gambles and it doesn't work out. I really don't understand why. People love to say " well I knew that wouldn't work and act like they "know it all".
These are people that wouldn't take a chance on something come hell or high water.

HyVee is trying to rectify their mistake and it will take time. Of course maybe they can't correct things for the better. Sometimes mistakes take you down.

This country is really getting into a tough environment for businesses. Hell is coming for some.

The. Usiness is a victim of piss poor management decisions. Can’t blame the uniôn, here. Th Old HyVee team understood what their business was and gave it to their customers. You don’t have to be “the cheapest”...you do have to offer a selection, a service be a place where folks wanna go! Hy Vee has always been “ expensive” but they have always been a food grocer leader in Iowa. Seems to me the new management team is learning a hard lesson, right now.

 

[bunsen82]

The. Usiness is a victim of piss poor management decisions. Can’t blame the uniôn, here. Th Old HyVee team understood what their business was and gave it to their customers. You don’t have to be “the cheapest”...you do have to offer a selection, a service be a place where folks wanna go! Hy Vee has always been “ expensive” but they have always been a food grocer leader in Iowa. Seems to me the new management team is learning a hard lesson, right now.

Yes and the problem is they always use to excel in service due to their long term employees, but the majority of them are now gone. The issue in my home town is we went to the dollar fresh model which severely restricts the brands and items offered. Between that and declining service they have lost a lot of business. We also had an ALDIs close in February but most of those economical shoppers have switched to Wal Mart.

 

[Tfxchawk]

The. Usiness is a victim of piss poor management decisions. Can’t blame the uniôn, here. Th Old HyVee team understood what their business was and gave it to their customers. You don’t have to be “the cheapest”...you do have to offer a selection, a service be a place where folks wanna go! Hy Vee has always been “ expensive” but they have always been a food grocer leader in Iowa. Seems to me the new management team is learning a hard lesson, right now.

They put in a restaurant and started competing with local restaurants which meant their food offering in that space had to be as good or better. It wasn't special. Same types of things you can get anywhere in town. What got lost was a cheap diner that people could take their young kids for a pancake quick. A place where old people could hang out and drink coffee or meet a friend. They really effed up

 

[joelbc1]

Yes and the problem is they always use to excel in service due to their long term employees, but the majority of them are now gone. The issue in my home town is we went to the dollar fresh model which severely restricts the brands and items offered. Between that and declining service they have lost a lot of business. We also had an ALDIs close in February but most of those economical shoppers have switched to Wal Mart.

HyVee is “a smile in every aisle”....not everyone is a Chiefs fan. The “new Hy Vee” seems to have forgotten why Iowans felt loyalty to them.

 

[DooBii]

We really screwed the pooch on food service. I was a kitchen manager when we switched to Hickory House foods. The problem was, they did it everywhere. It would have worked in Omaha and Des Moines and Kansas City where we had Chinese, Italian and a salad bar. People weren't going there for meatloaf and cheesy potatoes.

In my store they did come there for that. We told our 30 to 40 lunch customers that we didn't want them to come here anymore for 2 or 3 customers that wanted gourmet smoked food. It ****ing sucked to try and make it work in a small town.

Then recently we doubled down on breakfast. Who the **** wants to go get breakfast where you can't get hashbrowns. I don't. I have only eaten breakfast at hyvee twice since they switched to American fries or whatever potato they serve.

 

[joelbc1]

We really screwed the pooch on food service. I was a kitchen manager when we switched to Hickory House foods. The problem was, they did it everywhere. It would have worked in Omaha and Des Moines and Kansas City where we had Chinese, Italian and a salad bar. People weren't going there for meatloaf and cheesy potatoes.

In my store they did come there for that. We told our 30 to 40 lunch customers that we didn't want them to come here anymore for 2 or 3 customers that wanted gourmet smoked food. It ****ing sucked to try and make it work in a small town.

Then recently we doubled down on breakfast. Who the **** wants to go get breakfast where you can't get hashbrowns. I don't. I have only eaten breakfast at hyvee twice since they switched to American fries or whatever potato they serve.

Now Dahl’s had them some American fries! (Back in the day)...The Old .99 Breakfast Special...2 eggs, American fries/ hash browns, bacon/sausage/ ham and a .25 cup of coffee (free refills)...Those were the days. However, there were days when I didn’t have the coin to buy one, either.

 

[OutbackBowl2017]

Add in the cost of building all of these Fast and Fresh Gas Marts going up west of 80/35 in Urbandale (3 stores) and 1 in WDM off University and 156th. For some reason Hy Vee wants to compete with Casey’s and Kwik Star gas stations not near their grocery stores. It will be interesting to see how these expensive stores do with franchise partners such as Starbucks and Caribou Coffee.

 

[WARHAWK]

When they went from the Deli to the Grille yesrs ago I knew they were going away from a great thing. I stopped going to the Deli/Grille when they changed their Meatloaf. They used to give you a big ol slice of greasy meatloaf that was so tasty. Then they switched to the little lumps they called meatloaf. I moved to TX so I haven’t been to a Vee in awhile, did they ever switch back to slices of meatloaf?

 

[DooBii]

Add in the cost of building all of these Fast and Fresh Gas Marts going up west of 80/35 in Urbandale (3 stores) and 1 in WDM off University and 156th. For some reason Hy Vee wants to compete with Casey’s and Kwik Star gas stations not near their grocery stores. It will be interesting to see how these expensive stores do with franchise partners such as Starbucks and Caribou Coffee.

Those fast and freshes are really not that expensive to build. They pour a concrete slap and then drop a prefab box on it. Ours in small town northwest iowa was paid for in no time.

 

[stillh8unlv]

There are plenty of people that love to criticize and laugh at individuals or companies
that take risks or gambles and it doesn't work out. I really don't understand why. People love to say " well I knew that wouldn't work and act like they "know it all".
These are people that wouldn't take a chance on something come hell or high water.

HyVee is trying to rectify their mistake and it will take time. Of course maybe they can't correct things for the better. Sometimes mistakes take you down.

This country is really getting into a tough environment for businesses. Hell is coming for some.

They didn't 'take risks'.

They were terribly misguided by people who get paid a lot of money to know better.

They need an overhaul and they need it now, which it appears they may finally be realizing.

 

[Pinehawk]

I used to go to Hy-Vee often for lunch, for their salad bar. It went away with Covid, and hasn’t come back.
So, I don’t go there as often anymore.

 

[EasyHawk]

 

[EasyHawk]

 

[RonaldMexico]

Yes I will take that bet. Healthy companies do not cut 650 people then try to blame it on the pharmacy. The issue is the pharmacy has been the golden goose for Hyvee for years and it is no longer carrying the stores like it use to. What is going to change the margin compression in the pharmacy? Signing better contracts is a start, but the margin compression is still there. They may limp along longer than I expect but things are tightening and we have been in a period with more Money to be spent than any time in the last 20 years and Hyvee still is struggling. I knew about the cuts yesterday. As to sour grapes- I can tell you Hyvee has let go off some really good people. They got rid of a couple rotten apples in the restructuring but you can ask anyone if things are better now than 10 years ago and they will all tell you it is much much worse. Individuals made careers working at Hyvee, those days are likely gone. The 20 and 30 year associates have either been let go or retired or left due to increased stress. I know the one individual works at a distribution center, and honestly everything may be ok for him, however the individuals I know have all left and they ranged from management up to the home office.

So two years from right now. How much would you like to bet and how do we make sure that you pay.

 

[MitchLL]

I'll just throw this out there for those that may not be aware...

Hy Vee's CEO is/was a prominent business advisor to the Iowa Governor's office and was involved during the Covid decisions emanating from Terrace Hill in 2020.

I believe he's also a member of the vaunted Iowa Business Council.

 

[CesspoolHawk]

I'll just throw this out there for those that may not be aware...

Hy Vee's CEO is/was a prominent business advisor to the Iowa Governor's office and was involved during the Covid decisions emanating from Terrace Hill in 2020.

I believe he's also a member of the vaunted Iowa Business Council.

He also put out internal communications voicing his support for Trump in 2020.

 

[ConvenientParking]

He also put out internal communications voicing his support for Trump in 2020.

I remember that being unpopular on reddit.

 

[MitchLL]

View embedded media

As mentioned regarding the "Warn Act", Edeker is offering laid off employees retail jobs at a much lower salary to skirt the intent of the law.

Sounds like a pretty ruthless, unethical way to do business and run a company.
Creating lower morale that will eventually affect all employees.

 

[Pinehawk]

I know of a person who, as part of their job, required Hy-Vee to do something. Completely legitimate, and backed by the law. Hy-Vee then went to a state agency who overruled the decision and the person ended up being fired.

 

[DooBii]

He also put out internal communications voicing his support for Trump in 2020.

He also started as a grocery sacker for HyVee

 

[GOHOX69]

Here's my take as a customer. HyVee has gone full hipster doofus. It pretends to be something it isn't. I can speak to one store as an example-- the North Liberty hyvee on Crosspark Road. It opened up with much fanfare a few years ago. Since then, I go there on a weekly basis. They've doubled down on sophistication and diversification and it's a total cluster f. First, the layout of the aisles was literally done by a crackhead. Nothing is remotely logically laid out and nothing related is stocked together. In other words, shopping is a painful pos experience that lasts forever. Adding to this simple American food is gone. This means your basic plate lunch and breakfast. Things that catered to Iowans and old folks on very fixed incomes. Instead, Hyvee has bet on idiots like me and added a sushi bar, Asian Chinese thing, Italian brick oven pizza and American chicken etc and full bakery. And the geniuses have a for pay wahlburgers right next to that. Who the f wants sit down dining in a grocery store? The marketgrille was already hemorrhaging. So they instead went with something that was even worse. Adding to this misery is pricing and product selection. First, I'm happy Hyvee does have a seafood selection, especially lobster and king crab during Christmas. Prices for these are always high but Hyvee is competitive and Costco sucks ass in this now. But staples now are out of the reach of common people. It's nice to offer Amy's Indian dinners at 5 bucks a pop but it might be equally nice to offer 1.50 banquet American dinners. Iowa City is a bifurcated market. There are many ui folks making bank but many salt of the earth people making way way less. These customers are going to Walmart, Aldi and Fareway. Sorry Trader Joe's, you're hipster doofus also. How Hyvee regains their core customer I dunno but it has to start jettisoning stars, stupid ad campaigns, sponsoring Indy car as the lead sponsor and other things like it's now failed Hyvee Ironman triathlon.

 

[claykenny]

He also started as a grocery sacker for HyVee

Maybe he should go back to sacking groceries.

 

[Pinehawk]

Maybe he should go back to sacking groceries.

It seems he prefers sacking employees.

 

[CookyMonster]

I got the chinese food in a pinch the other day and the fried rice was white rice with soy sauce. Barely edible.

 

[Thunderlips71]

He also put out internal communications voicing his support for Trump in 2020.

As if we needed more evidence of this guy’s douche baggery