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Hy-Vee, where there’s a cold corporate shrug in every aisle

cigaretteman

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If Hy-Vee has a corporate heart, you’ll find it in the frozen foods section. Somewhere between the fish sticks and Tater Tots.



Coldhearted is a good way to describe the grocery chain’s announcement it will be closing its store on First Avenue in Cedar Rapids’ core, serving the Wellington Heights and Mound View neighborhoods. The doors will close for good on June 23.


But fear not. Hy-Vee communications VP Tina Potthoff said people in those neighborhoods can still order groceries online and have them delivered. All they need to do is make a minimum of order of $24.95 and fork over a delivery charge of $9.95.




Hy-Vee’s belief everyone in these generally low-income neighborhoods can whip out their laptops and credit cards to spend $35 shows how out of touch the company has become. So far out of touch this weak response sounds like it’s being beamed from another planet.


This is no ordinary Hy-Vee store. In 2002, the city offered the company $915,000 to help buy the land, tear down an older, smaller store and build a new one. The grocery store was seen as a linchpin in efforts to stabilize and revitalize the neighborhoods.


Yes, Hy-Vee is in the business of making profits, with 285 stores in eight states and $13 billion in annual sales, according to its website. The First Avenue store has been missing sales goals. But how much is community good will and the company’s reputation worth? Both are now damaged.


“The grocery business is a hard business, we get that,” said City Council member Dale Todd in an email Friday morning. Todd was a key player in getting the store built in 2002.





“But it takes two willing partners to make a development deal happen. At the city we have tools and the willingness to find a way to make things happen. Regretfully Hy-Vee appears to not be interested and instead talks to us through their lobbyist and corporate communications spokesperson. “


Congratulations, Hy-Vee executives. You’ve created a food desert in Iowa’s second-largest city. Instead of a helpful smile, residents who depended on having a store close by are getting a cold shrug.


A food desert is an area where people face barriers to buying healthy food. Barriers like access to transportation. Food deserts in rural areas have gotten a lot of attention in Iowa. But in urban areas there also are grocery gaps hampering access to good food, not to mention access to prescription drugs. It’s all bad news for folks without reliable transportation.


The nearest full-service grocery store to the existing Hy-Vee site is the Hy-Vee on Oakland Road, which is 1.8 miles away, according to Google. That’s a 40-minute walk one way.


The Fareway store on First Avenue is 2.4 miles away, or a 53-minute walk. Then there’s the Aldi on Collins which is 3.6 miles away and would take more than an hour to reach on foot.


There is public bus service. But lining up your grocery buying time with bus schedules can be a challenge. Maybe a friend can give you a lift, or maybe not. Other local programs are working to fill transportation needs, which is great.


But the more you complicate a trip to the store, the more likely it is residents will fill the gap with food purchased at convenience stores. Unhealthy foods exacerbate health problems already plaguing lowans — obesity, heart disease, diabetes and other ailments. Also, convenience foods often cost more.


Grocery chains prefer to put stores in more affluent areas, compounding a history of housing redlining, discrimination and structural inequality in neighborhoods they abandon. As Mayor Tiffany O’Donnell said Thursday, the affected neighborhoods have been improving, thanks, in part, to public investments. Losing the store is clearly a setback.


Todd said in May 2023, a Hy-Vee regional manager informed the city the store would close.


“The mayor, city manager and I basically said no way in hell,” Todd said.


The lease on the land was set to expire and, at some point, the land had been sold.


“The fact that somewhere along the line they had sold the land was news to us, so we tracked down the owners and stressed to them the importance of this store and they soon informed us that a new lease had been signed for a five-year term,” Todd said. “Anything Hy-Vee says today to the contrary is gobbledygook.


“The way Hy-Vee announced their decision was purposeful and done in a manner that puts the city at a disadvantage. It was a betrayal of trust and a mutual working relationship that I thought we had developed throughout the years. To simply suggest that current shoppers can walk to other stores is a callous disregard of reality. This is a stain on their brand and on those that made this decision,” Todd said.


So, what now? It will take considerable work to replant the food desert. It’s likely government investments will be needed again.


The state could help. Rep. Brian Lohse, R-Bondurant, filed legislation this year that would have set up a $2 million fund to help pay for grocery store projects in underserved communities. It passed a House committee but died without further action.


Local stakeholders can be recruited. Plans must be made, and partnerships formed. It’s a difficult situation, but not hopeless.


Waterloo is a good example of what can be done. Hy-Vee also announced it is closing a Waterloo store next month. But the good news is All-In Grocery, a community-supported store, is open. It took seven years for city leaders and residents of the Walnut neighborhood to make it happen.


All-In is more than a grocery store. It offers after-school programs through the 1619 Freedom School, a community center and a reentry program for residents who have been incarcerated, according to Iowa Public Radio.


“We shouldn’t have to have a celebration for the opening of a grocery store in our own community,” said Nikole Hannah-Jones, a Waterloo native and Pulitzer Price-winning founder of the 1619 project. “It just shows that we have so many obstacles to overcome for things that other communities can do normally.”


We also shouldn’t have to have a wake for the loss of a grocery store. A city that overcame floods and a derecho can surely figure out a way to put healthy food back on the table.


(319) 398-8262; todd.dorman@thegazette.com
 
If Hy-Vee has a corporate heart, you’ll find it in the frozen foods section. Somewhere between the fish sticks and Tater Tots.



Coldhearted is a good way to describe the grocery chain’s announcement it will be closing its store on First Avenue in Cedar Rapids’ core, serving the Wellington Heights and Mound View neighborhoods. The doors will close for good on June 23.


But fear not. Hy-Vee communications VP Tina Potthoff said people in those neighborhoods can still order groceries online and have them delivered. All they need to do is make a minimum of order of $24.95 and fork over a delivery charge of $9.95.




Hy-Vee’s belief everyone in these generally low-income neighborhoods can whip out their laptops and credit cards to spend $35 shows how out of touch the company has become. So far out of touch this weak response sounds like it’s being beamed from another planet.


This is no ordinary Hy-Vee store. In 2002, the city offered the company $915,000 to help buy the land, tear down an older, smaller store and build a new one. The grocery store was seen as a linchpin in efforts to stabilize and revitalize the neighborhoods.


Yes, Hy-Vee is in the business of making profits, with 285 stores in eight states and $13 billion in annual sales, according to its website. The First Avenue store has been missing sales goals. But how much is community good will and the company’s reputation worth? Both are now damaged.


“The grocery business is a hard business, we get that,” said City Council member Dale Todd in an email Friday morning. Todd was a key player in getting the store built in 2002.





“But it takes two willing partners to make a development deal happen. At the city we have tools and the willingness to find a way to make things happen. Regretfully Hy-Vee appears to not be interested and instead talks to us through their lobbyist and corporate communications spokesperson. “


Congratulations, Hy-Vee executives. You’ve created a food desert in Iowa’s second-largest city. Instead of a helpful smile, residents who depended on having a store close by are getting a cold shrug.


A food desert is an area where people face barriers to buying healthy food. Barriers like access to transportation. Food deserts in rural areas have gotten a lot of attention in Iowa. But in urban areas there also are grocery gaps hampering access to good food, not to mention access to prescription drugs. It’s all bad news for folks without reliable transportation.


The nearest full-service grocery store to the existing Hy-Vee site is the Hy-Vee on Oakland Road, which is 1.8 miles away, according to Google. That’s a 40-minute walk one way.


The Fareway store on First Avenue is 2.4 miles away, or a 53-minute walk. Then there’s the Aldi on Collins which is 3.6 miles away and would take more than an hour to reach on foot.


There is public bus service. But lining up your grocery buying time with bus schedules can be a challenge. Maybe a friend can give you a lift, or maybe not. Other local programs are working to fill transportation needs, which is great.


But the more you complicate a trip to the store, the more likely it is residents will fill the gap with food purchased at convenience stores. Unhealthy foods exacerbate health problems already plaguing lowans — obesity, heart disease, diabetes and other ailments. Also, convenience foods often cost more.


Grocery chains prefer to put stores in more affluent areas, compounding a history of housing redlining, discrimination and structural inequality in neighborhoods they abandon. As Mayor Tiffany O’Donnell said Thursday, the affected neighborhoods have been improving, thanks, in part, to public investments. Losing the store is clearly a setback.


Todd said in May 2023, a Hy-Vee regional manager informed the city the store would close.


“The mayor, city manager and I basically said no way in hell,” Todd said.


The lease on the land was set to expire and, at some point, the land had been sold.


“The fact that somewhere along the line they had sold the land was news to us, so we tracked down the owners and stressed to them the importance of this store and they soon informed us that a new lease had been signed for a five-year term,” Todd said. “Anything Hy-Vee says today to the contrary is gobbledygook.


“The way Hy-Vee announced their decision was purposeful and done in a manner that puts the city at a disadvantage. It was a betrayal of trust and a mutual working relationship that I thought we had developed throughout the years. To simply suggest that current shoppers can walk to other stores is a callous disregard of reality. This is a stain on their brand and on those that made this decision,” Todd said.


So, what now? It will take considerable work to replant the food desert. It’s likely government investments will be needed again.


The state could help. Rep. Brian Lohse, R-Bondurant, filed legislation this year that would have set up a $2 million fund to help pay for grocery store projects in underserved communities. It passed a House committee but died without further action.


Local stakeholders can be recruited. Plans must be made, and partnerships formed. It’s a difficult situation, but not hopeless.


Waterloo is a good example of what can be done. Hy-Vee also announced it is closing a Waterloo store next month. But the good news is All-In Grocery, a community-supported store, is open. It took seven years for city leaders and residents of the Walnut neighborhood to make it happen.


All-In is more than a grocery store. It offers after-school programs through the 1619 Freedom School, a community center and a reentry program for residents who have been incarcerated, according to Iowa Public Radio.


“We shouldn’t have to have a celebration for the opening of a grocery store in our own community,” said Nikole Hannah-Jones, a Waterloo native and Pulitzer Price-winning founder of the 1619 project. “It just shows that we have so many obstacles to overcome for things that other communities can do normally.”


We also shouldn’t have to have a wake for the loss of a grocery store. A city that overcame floods and a derecho can surely figure out a way to put healthy food back on the table.


(319) 398-8262; todd.dorman@thegazette.com
When those people robbed the place blind it's Hy-Vee's fault for saying no mas? Tell me you're not a marxist.........
 
I was told that the only reason that thing survived as long as it did was that it was subsidized by the city. It was never profitable. That ended and so now they're moving.
Todd said in May 2023, a Hy-Vee regional manager informed the city the store would close.


“The mayor, city manager and I basically said no way in hell,” Todd said.


The lease on the land was set to expire and, at some point, the land had been sold.


“The fact that somewhere along the line they had sold the land was news to us, so we tracked down the owners and stressed to them the importance of this store and they soon informed us that a new lease had been signed for a five-year term,” Todd said. “Anything Hy-Vee says today to the contrary is gobbledygook.


“The way Hy-Vee announced their decision was purposeful and done in a manner that puts the city at a disadvantage. It was a betrayal of trust and a mutual working relationship that I thought we had developed throughout the years. To simply suggest that current shoppers can walk to other stores is a callous disregard of reality. This is a stain on their brand and on those that made this decision,” Todd said.
 
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Oakland Road HyVee is exactly 2 miles from the 1st Ave Hy Vee and has been there forever. Those that need to get groceries will find a way to get to that location. Those that just used 1st Ave for "accessories" have plenty of selection left with gas stations and tobacco/liquor stores in that area.
What a racist comment! You really think the people that live there are smart enough to use GPS or a map to find another place? If the people aren’t smart enough to get an ID to vote, so there’s no way they can find another place 2 miles away, for goodness sake.
 
Bring back Econo Foods!!
Thre's an aldi nearby per the article, but they could bring in places like family fare, super saaver, etc. Even filling that space with a walmart neighborhood market could help. Fills a need with much lower prices than Hy Vee.
 
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I also learned that Hy Vee stocks some of their locations in the inner city with grocery items that are "close to expiration" foods.

Truly disgusting, but hey, the Hy Vee CEO is a close confidant of the Governor so none of this stuff is surprising.
 
Thre's an aldi nearby per the article, but they could bring in places like family fare, super saaver, etc. Even filling that space with a walmart neighborhood market could help. Fills a need with much lower prices than Hy Vee.

There is a Save A Lot about 3 miles away from the Hy Vee on 1st. I know that will be a challenge for some to get to. I hope there is an alternative that pops up in the Hy Vees location
 
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If I was strapped for cash I would not be shopping at Hy-Vee. I try to avoid them as is.

Walmart has much better prices and everything people need. What's the closest Walmart?
This isn’t true. The wife and I are more of the poors variety. We’ve shopped around at multiple places for food. In the end they all rip you off. Some things are cheaper at Walmart and some are cheaper at other places. Sure you could go shop at multiple stores to save the most money in store. But you’re wasting money in gas and a persons time.
What would help is if someone did something about corporations price gouging. Why don’t we complain about that instead of a store closing and “no one having grocery options”.
 
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This isn’t true. The wife and I are more of the poors variety. We’ve shopped around at multiple places for food. In the end they all rip you off. Some things are cheaper at Walmart and some are cheaper at other places. Sure you could go shop at multiple stores to save the most money in store. But you’re wasting money in gas and a persons time.
What would help is if someone did something about corporations price gouging. Why don’t we complain about that instead of a store closing and “no one having grocery options”.
The problem, as I see it, is local government subsidized them building the store in that location.
 
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HyVee is now a headache. Some stuff is on sale, some stuff you need a coupon, some stuff you need perks membership, other things you need perks+.

Frankly, it’s like shopping at Kohl’s where you almost need to do prep work before shopping.

I will just go to ALDIs, Costco/Sams, and when necessary the zoo (Walmart).
 
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The problem, as I see it, is local government subsidized them building the store in that location.
I guess that depends on which article you read. Some say it was up and that’s why they left, which I would have no problem with. If they were still receiving subsidized money and just up and left, that’s pretty shitty.

it’s also a bit weird that a business will received a subsidized building or location yet they aren’t forced to have cheaper items for the people in that neighborhood.
Granted they have to make up the loss in theft and most likely pay for the extra security they need because of the location they are in.
Maybe we should be blaming the people living in that area as well.
 
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The problem, as I see it, is local government subsidized them building the store in that location.
From what I got from the article, the subsidies allowed that location to operate at a loss. Once the subsidies ended, it shouldn't be reasonable to continue asking a business to continue losing money. If they wanted the money-losing location to continue to operate, the city should've continued the subsidies.

"But how much is community good will and the company’s reputation worth?"

The answer is not much, when the community doesn't support the store to the point where it can be sustainable.
 
Guessing setting up a store differently (less friendly) to cut down on theft would result in some high profile blowback.
 
The problem, as I see it, is local government subsidized them building the store in that location.
(Double check me on this.) But I believe Hy-Vee met the terms of the agreement to keep the store open for the length of the agreement.

Rather than just beat on Hy-Vee for leaving that market...why not recruit another competitor in and let them rake in the profits? If no other company steps up, then castigate all of the other grocery stores for not operating a money losing operation there.
 
(Double check me on this.) But I believe Hy-Vee met the terms of the agreement to keep the store open for the length of the agreement.

Rather than just beat on Hy-Vee for leaving that market...why not recruit another competitor in and let them rake in the profits? If no other company steps up, then castigate all of the other grocery stores for not operating a money losing operation there.
FWIW, I didn't see the part that the time was over. That being said, why was a large store needed? And was that what was requested by the city or by Hy-Vee?
 
Thanks for making it clear you’d just much rather blame the company that’s losing money than the ones causing them to lose money.
The only thing, I'm blaming the company for, is taking tax money to build and expand.

But, perhaps(although not likely) you can explain how the ones(not sure what you mean by this) are causing them to lose money?
 
El OH eL.


They met the obligations.

20 years for anything is a decent run

People with money chose to move away from the nuisance of the city and not once will anyone give a shit about them being 3 miles from a hyvee.
 
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I was told that the only reason that thing survived as long as it did was that it was subsidized by the city. It was never profitable. That ended and so now they're moving.


Yep. Anyone with an ounce of common sense understands why a company would close a store or restaurant where crime and theft are high and where it is not performing financially. These types of closings are also happening with Target, Walmart and some restaurants chains.

From the linked story:

The City of Cedar Rapids had given Hy-Vee incentives to build the First Avenue store in 2001 and keep a grocery store in the area, including a 20-year tax increment financing. The Gazette reported the head of Hy-Vee at the time made it clear that the store was not financially viable without the city’s tax incentives.

“We have looked at every number known to a human being and I can’t take it to our stockholders and tell them we’re going to build a project and lose money forever,” Hy-Vee’s former President, Ron Pearson, told the city’s mayor at the time of the store’s opening in 2001.

 
Thre's an aldi nearby per the article, but they could bring in places like family fare, super saaver, etc. Even filling that space with a walmart neighborhood market could help. Fills a need with much lower prices than Hy Vee.

If the area is high in crime, even Walmart won't take it on; they've tried and now they, too, are closing stores that are not performing.
 
The only thing, I'm blaming the company for, is taking tax money to build and expand.

But, perhaps(although not likely) you can explain how the ones(not sure what you mean by this) are causing them to lose money?


Stupidity Are You Stupid GIF


The “ones” are the people living in that area that i just mentioned in a previous post. The people that are stealing, making hy-vee need extra security and so on.
The rough neighborhood that doesn’t allow hy-vee to be profitable.
 
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