Hy-Vee recently revealed that it plans to add 40 new retail units to its eight-state region in 2021, including a mix of traditional Hy-Vee locations, Dollar Fresh stores, and Fast & Fresh convenience locations.
SFA News Daily spoke with Dawn E. Buzynski, director of strategic communications for Hy-Vee, about the grocer’s expansions and what is has learned a year into the COVID-19 pandemic.
How are the Dollar Fresh and the Fast & Fresh store formats different than the traditional Hy-Vee location?
Dollar Fresh stores are designed for smaller communities and have an assortment of fresh and new products at low prices. While offerings vary based on the needs of each community, each store features a full selection of groceries, fresh baked items, a dollar section, a wall of value, ready-to-eat meal options, and other services.
Fast & Fresh stores are an enhanced convenience store model. Hy-Vee Fast & Fresh stores carry limited grocery items such as pantry and frozen items and a selection of fresh produce, dairy, meat, and bakery items. Made-to-order meals are available for carry-out or dining in, along with take-and-heat meal options.
How are they catering to different kinds of consumers and shopping needs?
The Dollar Fresh model is a fit for smaller towns where value is important as well as selection and quality. It is because of the success of our current stores that we are moving forward with additional stores in the upcoming years.
Fast & Fresh have definitely found a niche where customers want the benefit of a convenience store where you can fill up with gas but also have a broader selection of pantry items, produce, and ready-made meal options.
What is the state of the grocery industry like now, a year into the pandemic? What lessons have you learned?
Because Hy-Vee is employee owned, that ownership mindset allowed us to very, very quickly adjust and adapt to our new normal. Stores were able to pivot immediately and focus on taking care of customers and each other. The biggest lesson coming out of the pandemic (and also weathering a severe windstorm) is that our employees can do amazing things whenever a crisis hits.
What pandemic-related changes are here to stay?
When the pandemic began, our first priority was supporting the needs of our stores, not only from a safety standpoint but also ensuring stores are fully stocked and able to meet the needs of customers. Immediate, real-time communication was crucial. We implemented an internal communications strategy and launched a new communications tool with a mobile component that allowed us to send critical messaging and updates around our pandemic response quickly across the entire employee base of 88,000 people. Feedback from our employees has been overwhelmingly positive, with many leaving comments on the updates sharing how much they appreciate hearing directly from senior leaders. Looking ahead, we are planning to expand this channel as it allows us to stay agile and operationally pivot quickly especially in a crisis situation.
Additionally, we anticipate usage for our online shopping platform, Aisles Online, will remain very strong and we will continue to put resources and strategy to expand our e-commerce platforms. At the store level, we will continue to follow our cleaning and sanitization protocols so our customers feel safe and comfortable shopping in our stores.
Related: Hy-Vee Reveals Expansion Plans; Hy-Vee to Build Free-Standing Grocery Pickup Kiosk.
Image: Hy-Vee