Headquartered in West Des Moines on the Westown Parkway, Hy-Vee, Inc. has been an Iowa institution for nearly a century. With its first store opened in 1930, Hy-Vee has since grown across the city and into more markets across the Midwestern and Southern states of the US. Perhaps with its history, then, it won’t come as too much of a surprise that Hy-Vee commands the largest share of the Des Moines grocery market.
Of course, being local isn’t enough to earn dollars; otherwise, the likes of Walmart, Costco, Target, and even Hy-Vee wouldn’t reach the heights that they have done. Yet, the grocery dollars put down by customers across the state capital have favored Hy-Vee. The market share owned by Hy-Vee is a hefty 28.5 percent, followed by Walmart with a distant 17.9 percent. So, what is it that’s helping to pump up Hy-Vee over its competitors?
Perks and bonuses for loyal and new customers
Hy-Vee has grown through an increasingly competitive space, with huge brands like Walmart coming to muscle in on every bit of turf available. So, to help stay on top, Hy-Vee risked opening up to bonuses and perks for customers. It’s risky as the practices are essentially giving stuff away for free, but the classic form of marketing has stood the test of time and has even been revived as a major selling point online.
You can look beyond grocery stores to the even more competitive space of online casinos. These brands will go all-in on offering extras to new players. The no-deposit bonus is the prime example of this, giving free playing funds without any cash committed. Hy-Vee has adopted this same approach for its online arm. Right now, anyone’s first Aisles Order online gets $10 off with the code WELCOME.
On top of this, Hy-Vee offers the Perks, Perks Plus, and Coupons offers that are easily found on their website. The Coupons page is loaded with $1 off here and $2 off here, with some even offering a $6 reduction at the time of writing. Then, there’s the free Perks program that cuts the cost of gas, and the premium $99 per year Perks Plus, which offers even more benefits like free delivery, express pick up, more money back on fuel, and exclusive offers.
Being bold in the heart of Iowa
As is demonstrated by Hy-Vee’s extensive perks offering, the company certainly isn’t afraid to be bold in its approach. After being named the retailer of the year by Supermarket News, board of director member Randy Edeker praised the bold approach. He said it’s about making “bold decisions, and fail fast, and keep moving to stay ahead of our customers.”
Just as important as the approach is the ownership. Hy-Vee is an employee-owned company, meaning that it’s owned by over 75,000 people. This helps to guide the company to the next strong step and to constantly promote Hy-Vee. When employees are invested in the company’s success, you’ll generally get more out of them. Maintaining this employee-owned status in the modern marketplace alone is a bold move.
So, it seems that Iowa very much likes its bold, home-grown grocer, even with the even bigger national brands trying to muscle in on Hy-Vee’s turf.
