Hy-Vee Is Shuttering 2 Production Facilities, Impacting 461 Employees

Hy-Vee has announced that it is shuttering two of its production facilities, impacting 461 employees.

According to the Des Moines, Iowa, NBC affiliate, WHO13, the two affected facilities opened in 2018 and are being closed to move production back to local stores. The company told the outlet that the decision was made to “improve the quality of its fresh offerings.”

The affected facilities are Ankeny’s Fresh Commissary, which produces mealtime items, sandwiches, salads, bakery goods, and take-and-bake pizzas, and Chariton’s Short Cuts, which processes fresh-cut fruits and vegetables. The business announced that production from the Short Cuts facility will return to retailers in May. Fresh Commissary and bakery items will return to retailers in May as well.

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Operations at the facilities will officially cease on June 24 after the final shift. Hy-Vee also said that it is “committed to assisting all impacted employees during this transition and is organizing hiring events to place as many employees at Hy-Vee stores as possible to best serve customers.”

There are no immediate plans for the shuttered facilities, but the company said that it is exploring “manufacturing more shelf-stable products or repositioning the facilities for other uses.”

Hy-Vee’s Digital Screens

Meanwhile, the company’s digital screens were unveiled in December 2024, and over 10,000 screens were implemented across more than 400 locations. At the time, questions were raised about their efficacy for consumers.

As part of the Grocery TV agreement, the screens were installed at each Hy-Vee store’s entrance, checkout, service departments, aisles, and end caps.

The increasing potential of in-store media has long been extolled due to its capacity to contact consumers at the point of purchase, despite the fact that the great majority of transactions still occur in physical stores, notably in the grocery channel.

“In-store retail media is in its early innings, but both retailers and advertisers are motivated by the possibility of reaching shoppers where over 80% of retail sales take place,” eMarketer Analyst Sarah Marzano said at the time. “Upgrading in-store infrastructure and investing in engaging digital formats will be crucial for retailers hoping to unlock the massive potential of in-store retail media.”