‘Back to the old-school Hy-Vee’: Grocer recalibrates with new twists on proven model
“Free bananas for children,” the sign reads in front of the Hy-Vee produce display. “Please take one!”
That’s just the start.
Stop by the deli and kids are given a free slice of cheese.
At the bakery, a free cookie is waiting.
In the floral department, there’s a free balloon.
The meat department hands out a free coloring page.
The pharmacy doles out stickers.
And any front register will leave young customers with a free sucker on their way out the door.
They’re all benefits of the Hy-Vee Kids Club, which, in keeping with the theme here, is free to join.
This isn’t unique to the store at 3000 S. Minnesota Ave., led by store director Darin Kriech. But it is a good example of why the 27-year Hy-Vee team member said he’s as enthused about his job today as when he started across town at the Sycamore Avenue store in 1999.
“Not everybody loves doing their weekly grocery shopping, but we can have fun and make it a good experience for people while they’re here,” he said. “That opportunity for me was a huge part of being at this location. We’re having fun and creating a good atmosphere for people to come in.”
Kriech has a counterpart at every store in Sioux Falls and the newly rebranded Hy-Vee locations in Harrisburg and Tea.
The Iowa-based grocer is migrating back to its traditional approach of assigning a store director to every location after combining some in recent years. Not only do the directors have management oversight of their teams, but also they’re empowered to play an integral role in leading the entire operation.
“You’re running it from A to Z, and you get to know the ins and outs for sure,” Kriech said. “It’s not a business plan that most businesses follow. We’re very autonomous, and I think that’s why we can adapt and adjust as quick as we can. I think that’s been a big part of the success over the years.”
The Sioux Falls-area store directors, along with others, report to Jan Nichols, who became regional vice president in South Dakota going on three years ago. She previously served a similar role on the east end of the company’s geography and has been with Hy-Vee for 18 years.
She’s based in Sioux Falls with her husband and daughter.
“I think it’s amazing,” she said. “It’s a small big town, but there’s so much to do, and I think people realize how awesome Sioux Falls is to live in. There’s so much to do, and people are so friendly.”
She has noticed “a really large connection between the employees and customers” at area Hy-Vee stores, she said. “I know that our slogan is ‘A helpful smile in every aisle,’ but I wholeheartedly agree having been in these stores. It’s the people connection. The employees will do anything for a customer. They’ll change a tire. They’ll run groceries to their house if we mess up an order. The service level is unbelievable here.”
The market includes eight Hy-Vee stores in the Sioux Falls metro area. The stores in Harrisburg and Tea were rebranded to Hy-Vee from Dollar Fresh in recent months.
“There’s something with our brand that resonates with customers,” Nichols said. “In all the times I’ve transitioned stores or opened new stores or remodeled, I’ve never been thanked by more customers than in the Tea area and the Harrisburg area.”
The stores have added full-service meat departments, bakeries and produce, along with “a bunch of grocery items that are more specialty,” Nichols said. “We maximized the heck out of the space, and it’s been very efficient.”
At one point in Sioux Falls, the market had gone to three store directors overseeing six locations. Other longtime leaders retired. Now with one director in each store, Nichols said the stability and engagement have returned.
The tenure also is growing. The team of store directors includes several with long-term experience:
“We definitely have shifted,” Nichols said. “I think it really goes back to having one store director run the store. Especially in Sioux Falls, with it being so rooted in the community, you have to have consistency. I plan to stay long term.”
The feeling throughout the stores is “back to the old-school Hy-Vee,” Nichols said. “Very customer-oriented, conscious about our deals and understanding what’s happening in the community.”
The approach also includes “really doubling down on getting back to the basics of service and friendliness,” Kriech said. “We’ve had a huge response.”
If the prices seem more value-conscious, that’s by design, they said.
“Our job is to provide the best service, that’s where we start, and then we have to be super deal-driven,” Nichols said. “Value might be in a price. It might be in the selections, the different specialty items we have. … Value is everything to the customer right now, and we’ve identified that in many areas.”
The in-store restaurants have transitioned back to Market Grilles, with an emphasis on breakfast.
“There might have been confusion that we stopped breakfast, and we actually didn’t, and our breakfast is amazing, so it’s more of an emphasis on that, and providing meals to take home has been a big strategy at Market Grille,” Nichols said.
DoorDash also offers delivery of everything from Market Grille food to Hy-Vee Chinese and fried chicken.
The model also continues to reflect a drive for convenience. The growth of Hy-Vee’s Aisles Online digital shopping platform, pickup and delivery options keeps accelerating, Kriech said.
“That’s a time-starved thing where people want to shop when they have time,” he said. “That’s been a huge change and investment. It’s almost like a second front end, and it just continues to grow as fast as you can keep up with it.”
New options in the stores include “15-minute meal kits” packaged with all ingredients and designed to be home cooked from scratch.
“It’s back to the basics of who we’ve always been, but with a twist on what people are looking for,” Kriech said.
See a trending dish on social media? Kriech’s goal is that you’ll find what you need for it in his store.
“We’re focused very much on trending items, trying to get ahead of those things as people see them online,” he said. “Making sure we’ve got the same things so they can see and touch and feel it and experience the trend they’re seeing online. That’s a huge part of it.”
Throughout the store, the idea is to deliver “that little extra fun or value but that piece of the experience that’s unexpected,” he continued. “It all ties back with staying current and on point.”
The stores also increasingly are reflecting people’s changing eating habits. A new private label line, Nothing but the Truth, focuses on a “better for you” option in everything from pantry items to frozen foods and dairy.
“We hear from a lot of customers in Sioux Falls that they want Trader Joe’s,” Nichols said. “We’re trying to find items that are very Trader Joe’s-like. In this Nothing but the Truth brand, the products are super high-quality ingredients, non-GMO, high protein, low sugar, high fiber.”
There are 150 products so far “and many more to come,” she said.
End-caps highlight items designed for those taking GLP-1s, while new dietitian-created dishes also have launched with medically tailored frozen meals.
“It’s completely unique to Hy-Vee,” Nichols said. “It’s made with whole-food ingredients and really supports a ton of dietary needs, very heart- and diabetes-friendly. They’re delicious. I eat pretty healthy anywhere, and I’m very leery of frozen meals. These are really good and get you the fiber and protein you need.”
The Kids Club, while not new to Hy-Vee, went away during the pandemic and came back with a refreshed version. In addition to the ongoing freebies, kids receive a treat on their birthdays and are invited to events at the stores. At the Minnesota Avenue location, the Easter Bunny will make an appearance from 10 a.m. to 2 p.m. Saturday, March 28, and an egg hunt throughout the store will lead to winning a prize.
“That keeps them engaged and interested and hopefully helps Mom or Dad or whoever they’re shopping with get through the store a little less stressful,” Kriech said.
The company continues to place an emphasis on giving back to the community, its leaders said. In January, Hy-Vee surpassed $3 million given to the community through Operation Helpful Smiles, which began in Sioux Falls in 2005, representing gifts to 63 nonprofits. That doesn’t include donations to school fundraisers, proms and community initiatives.
Area supervisors who live in Sioux Falls, including those with broader oversight over areas such as bakery, produce and meat, gather twice per quarter to volunteer at everything from Feeding South Dakota to the Bishop Dudley Hospitality House.
“It wasn’t just about giving money. It was about being involved,” Nichols said.
It’s also “a huge part of who Hy-Vee is,” Kriech added. “A lot of people enjoy coming here because they know Hy-Vee will support the community they’re in. For me, as someone who works here, that’s fulfilling.”
The post ‘Back to the old-school Hy-Vee’: Grocer recalibrates with new twists on proven model appeared first on SiouxFalls.Business.
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