FOOD FEARS
Grocery chain with 300 stores suddenly announces location closing for good in days – as food desert fears grow
The retail apocalypse looks set to continue with other chains announcing closures
CHIEFS of a major grocery store chain have revealed two outlets are set to close in weeks.
Hy-Vee officially announced the closure of its stores in Cedar Rapids, and Waterloo, Iowa, with the last operating day being Sunday, June 23.
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Senior vice president of communications, Tina Potthoff, explained that the decision to close stemmed from the store's failure to meet financial expectations in recent years.
However, affected employees will be provided opportunities for employment at other locations with no change in pay rate or benefits.
Pharmacy patients will receive detailed information via email regarding alternative pharmacy options.
“Unfortunately, these locations have not consistently met our financial expectations and sales goals over the past several years,” Potthoff told the Corridor Business Journal.
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“All employees will be offered a position at another Hy-Vee store in the area, at the same rate of pay, and will retain their existing benefits.
“Pharmacy customers’ prescriptions will be automatically transferred to another local Hy-Vee Pharmacy.
“Patients will receive a letter in the mail with additional information on the pharmacy that will serve them in the future.”
The Wellington Heights and Mound View locations came as a result of around $1 million of tax incentives offered by the Cedar Rapids government back in 2001.
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"This store was built on the back of taxpayer support, and its closure betrays the community's trust and investment," State Representative Sami Scheetz said in a statement, per local CBS affiliate KGAN-TV reported.
The closure of Hy-Vee means that the Wellington Heights community lost its closest grocery store.
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"The impending June 23 closure of this critical grocery will particularly affect the working-class neighborhoods of Wellington Heights and Mound View, potentially leading to a food desert," Scheetz said.
The Hy-Vee closure contributes to the mass closure of stores across the country.
It's feared that thousands of stores could close by the end of the year.
Store closure roundup
MAJOR retail stores across the country are set to close thousands of stores.
- Around 150 Macy's stores are set to close across the US over three years.
- Walgreens announced earlier this year that around 150 locations in the US will be closing.
- Dollar Tree bosses have announced a slew of closures, including 600 Family Dollar shops. These will close this year.
- Walmart has seen several store closures already this year. Supermarkets in El Cajon, California, and Columbus, Ohio, have closed.
- A supermarket in Fremont, California, will close on May 24.
- A Walmart Neighborhood Market outlet in Granite Bay, California, closed in April.
- Best Buy bosses confirmed 24 stores closed during the company's 2024 financial year.
- At least 100 Express stores are to close after the chain filed for bankruptcy.
- An Ulta store in the San Francisco Bay Area is set to close
Some are calling this the year of the so-called retail apocalypse, with Walmart alone announcing six store closures and clothing retailers such as Express announcing over 100 store closures.
Many business owners attribute the mass closure of retail stores to rising inflation throughout the US.
A Walmart representative, Alicia Anger, told the Sacramento Bee that a Sacramento location's closure was caused by the outlet not meeting "financial expectations."
High inflation rates are causing companies to raise their prices higher than ever before.
Classic chains such as Dollar Tree, a retailer known for its low-cost items, announced that it will be raising prices on certain items to as high as $7.
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“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” the company's CEO, Rick Dreiling, said during an earnings call.
The last time the discount chain announced a price hike was in 2021 when prices on select items went from $1 to $1.25.