Is Hy-Vee Going National?

West Des Moines, Iowa-based supermarket chain Hy-Vee is ready to go beyond its Midwestern borders, as reported by the Des Moines Register on Dec. 17. The regional grocery store is looking to expand into four new states as well as build a third distribution center in Tennessee.

In a video obtained by the newspaper from Zipline—Hy-Vee’s internal communication platform for its employees—CEO Randy Edeker said the company plans to build a distribution center, which will service seven new stores in Indiana as well as the southeastern states of Alabama, Tennessee and Kentucky. The Des Moines Register also reported that Edeker announced a 2023 launch of the distribution facility. 

The opening of two stores in the metro area of Nashville as well openings in Huntsville and Louisville, Ky., and Indianapolis, Ind., was also reported.

“This is the growth for the next 25 years for Hy-Vee in this territory,” Edeker said on the video. “If we can build out 50 stores in this market, we estimate that is $6 billion [in sales]. But overnight we’re going to go from a regional company to a national company. As we build our third DC (distribution center) in the Nashville market, you will see us turn more into a national presence.”

The newspaper also reported that Edeker said Hy-Vee expects to build at least 21 stores in the four-state region by 2025. Hy-Vee’s new distribution facility is the first one located outside of the supermarket chain’s home state. According to the video, select Hy-Vee employees will begin relocating to the Nashville region as early as next month.

WGB reached out to Hy-Vee for comment on the expansion, but a spokesperson declined to comment. 

Hy-Vee Inc., which recently announced the launch of nationwide subsidiary RedBox Rx, is an employee-owned corporation operating more than 285 retail stores across eight states in the Midwest, with sales of more than $12 billion annually. The company employs more than 91,000 employees.