Hy-Vee, an employee-owned grocery chain with over 550 locations across eight Midwestern states, has become synonymous with innovation, convenience, and top-notch customer service. With annual sales exceeding $13 billion and more than 75,000 employees, the company has consistently ranked as one of America’s favorite grocery stores. What sets Hy-Vee apart is its relentless drive to stay ahead of the curve, embracing cutting-edge technology and omnichannel strategies to enhance the shopping experience for its customers. From digital transformation to sustainable solutions, Hy-Vee is reshaping the future of grocery retail.

As consumer demand for online grocery shopping continues to soar, Hy-Vee has been quick to respond. The company has partnered with **Takeoff Technologies** to develop micro-fulfillment centers (MFCs). These centers are designed to streamline the process of preparing online orders from its Aisles Online platform. The MFCs allow Hy-Vee to handle a higher volume of online orders while optimizing efficiency and availability for customers. By building these MFCs in locations with significant online order growth, Hy-Vee is ensuring that customers have more time slots and product availability when they shop online.

In February 2024, Hy-Vee integrated Instacart’s Fulfillment-as-a-Service (FaaS) into its own websites and apps. This move further enhances Hy-Vee’s e-commerce capabilities by providing same-day delivery through its Aisles Online platform. Hy-Vee also collaborated with PayPal and Venmo to offer seamless and secure payment options, giving customers more flexibility and convenience during the checkout process. These innovations demonstrate Hy-Vee’s commitment to meeting the evolving needs of digital-savvy shoppers.

Hy-Vee is not just focused on improving online shopping; it’s also enhancing the in-store experience through automation. The company has deployed digital shelf labels powered by VusionGroup in over 230 stores. These electronic price tags allow Hy-Vee to update prices and product information in real-time, eliminating the need for manual price tag updates. Not only does this increase operational efficiency, but it also frees up employees to focus on replenishing stock and providing exceptional customer service.

Through VusionGroup’s platform, Hy-Vee can also automate intra-day promotions, reducing waste by offering real-time price markdowns on perishable items nearing their expiration dates. This innovation not only helps reduce food waste but also provides customers with the opportunity to save on fresh products. Additionally, flashing LEDs on the shelf labels guide employees during order fulfillment, boosting productivity and ensuring that online orders are picked accurately and swiftly.

Our focus has always been on providing our customers with the best experience possible, and that means leveraging technology to make shopping easier, faster, and more personalized.

In its Fast & Fresh convenience stores, Hy-Vee has partnered with **Deliverect** to automate the ordering process for grab-and-go items, curbside pickup, and delivery. Deliverect’s software integrates with kiosks and digital platforms, sending orders directly to the store’s point-of-sale system. This automation allows employees to focus on preparing food rather than taking orders, resulting in faster service and a more efficient operation.

By implementing Deliverect’s analytics, Hy-Vee is also able to make data-driven decisions about its menu offerings, further enhancing the customer experience. As Jennifer Lambert, Senior VP of IT Strategy and Planning at Hy-Vee, noted, “These integrations have dramatically increased the speed of our curbside pickup service while providing us with key insights to keep our operations running smoothly and our customers happy.”

Hy-Vee’s embrace of digital transformation extends beyond logistics and payment systems. In September 2023, the company launched Hy-Vee RedMedia, a retail media network designed to connect partner brands with Hy-Vee shoppers across multiple platforms. RedMedia allows advertisers to engage with customers through Hy-Vee’s digital platforms, in-store advertising, and even audio ads supported by Vibenomics. By leveraging customer data and insights, brands can create personalized shopping experiences, delivering the right message at the right time.

Jason Farver, President of Hy-Vee RedMedia, explained, “Retail media is outpacing traditional marketing and will be a game changer in consumer marketing. Leveraging insights allows companies to be smarter and more strategic with their marketing dollars, while also improving the customer experience.” RedMedia is a testament to Hy-Vee’s forward-thinking approach, recognizing that personalized engagement is key to maintaining customer loyalty in today’s digital age.

Hy-Vee’s commitment to sustainability is another factor that sets it apart from competitors. The company’s partnership with VusionGroup enables Hy-Vee to reduce food waste by dynamically adjusting prices for perishable goods. By digitalizing its stores with electronic shelf labels, Hy-Vee has also cut down on paper waste and labor-intensive processes. These efforts align with the company’s broader goal of creating a more sustainable retailing model.

Brian Young, Senior VP and CIO of Hy-Vee, highlighted the benefits of this digital transformation: “Partnering with VusionGroup helps us streamline multiple operations in our stores, and makes the labeling process significantly better for both our customers and our employees.” By embracing sustainability at every level of its operations, Hy-Vee is not only improving efficiency but also making a positive impact on the environment.

Hy-Vee’s technology investments are driven by one core philosophy: putting the customer first. Whether through its micro-fulfillment centers, Instacart’s FaaS, or Deliverect’s automated ordering, Hy-Vee’s innovations are all aimed at enhancing the customer experience. The company’s focus on personalized engagement, streamlined operations, and sustainable practices reflects a deep understanding of today’s grocery shoppers.

With over 75,000 employees delivering “A Helpful Smile in Every Aisle,” Hy-Vee has built a reputation for excellent customer service. As consumer preferences continue to shift toward convenience and digital solutions, Hy-Vee is well-positioned to lead the grocery industry into the future. By continually investing in technology, sustainability, and customer-centric strategies, Hy-Vee has solidified its place as a trailblazer in the grocery space.

Hy-Vee’s success in the grocery industry can be attributed to its unwavering commitment to innovation and customer satisfaction. From automating in-store processes to launching a retail media network, Hy-Vee is not afraid to embrace new technologies and trends. By integrating digital solutions into every aspect of its business, the company has created a seamless shopping experience that meets the needs of today’s consumers. As Hy-Vee continues to expand its digital footprint and enhance its sustainability efforts, it is clear that the company is shaping the future of grocery retail.