Grocery & CPG

Hy-Vee Bets on Fresh, Pharmacy and Ecommerce in Post-Slimdown Push

After shedding Wahlburgers and c-stores, Hy-Vee is remodeling stores, testing drive-through pharmacy pickup and converting Dollar Fresh to its main banner.

Hy-Vee Bets on Fresh, Pharmacy and Ecommerce in Post-Slimdown Push
Hy-Vee Bets on Fresh, Pharmacy and Ecommerce in Post-Slimdown Pushwaitscm / Openverse

Hy-Vee is doubling down on prepared foods, perishables, health and pharmacy after shedding peripheral businesses including its Wahlburgers partnership and its convenience-store operations.

CEO Jeremy Gosch laid out the strategy in an in-depth interview with the Des Moines Business Record published September 18, 2026. More acquisitions could follow the company's 2024 purchase of the Strack & Van Til chain, he said.

"What we're really looking at is, 'How do we continue to move to where the customer wants us to go long term?'" said Gosch, who was named CEO in 2022.

An extensive remodeling program is underway, starting with a store in West Des Moines. The revamp relocated the pharmacy and floral departments, added a branded Candy Shoppe and reworked the prepared-foods areas. The updated Market Grille in-store restaurant gained a salad case. The deli now carries an expanded selection of prepared foods plus more soups and sandwiches. Stores are making bagels and tortillas fresh. The Starbucks cafe moved into the dining area.

The retailer is also redesigning its ecommerce and pharmacy pickup areas to speed order fulfillment and traffic flow. At a Hy-Vee in Waukee, Iowa, the company moved online grocery pickup from the parking lot to a space attached to the store and added a dedicated pickup lane for online pharmacy orders.

A new drive-through pharmacy solution is next. It will let customers notify stores when they are on their way to pick up a prescription and pay in advance. Hy-Vee will test the service at stores in Waukee, Grimes and Ankeny, Iowa, according to the report.

HealthMarket departments are getting wider assortments of vitamins, supplements and other products, Gosch told the paper.

In meat and produce, Hy-Vee recently completed a brand evaluation focused on product quality. The company ended some partnerships and strengthened others, including one with produce supplier Driscoll.

The retailer is also converting its Dollar Fresh Market banner, a low-price concept operating in small towns, to the traditional Hy-Vee format with a service meat department and in-store bakery. Gosch said the company plans to expand this smaller version of a traditional Hy-Vee store into more small-town markets in the Midwest.

New-store development continues in major metro markets where Hy-Vee already operates, including Des Moines; Kansas City, Mo.; Omaha, Neb.; and Springfield, Mo.

Gosch left the door open to further deals. The company will consider additional acquisition opportunities if a target's "mission and values closely match" those of Hy-Vee, he said.

Original: businessrecord.com

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Nathan Brooks

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Market editor covering consumer brands and retail at Target Marketing.

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