Hy-Vee has shed peripheral operations including its Wahlburgers partnership and convenience store business, and is now refocusing on prepared foods, perishables, pharmacy, and health. CEO Jeremy Gosch outlined the strategy to the Des Moines Business Record, detailing an extensive remodel program underway across its stores, beginning in West Des Moines. Changes include expanded prepared food sections, updated deli and salad offerings, and freshly made items like bagels and tortillas.
On the produce side, Hy-Vee recently completed a brand evaluation of its fresh meat and produce partnerships, ending some relationships and strengthening others — including a deepened partnership with Driscoll's. The retailer is also redesigning ecommerce and pharmacy pickup to improve speed and flow, and plans to expand its small-town Midwest store format to more markets.
For produce suppliers, Hy-Vee's recommitment to fresh and perishables signals a meaningful retail partner investment that could translate into stronger produce placement and promotional activity across its Midwest footprint. The Driscoll's partnership signal in particular is worth watching for anyone competing in the berry category at Hy-Vee.