Hy-Vee Closing 2 Production Facilities

In an effort to improve prepared product freshness, Midwest food retailer Hy-Vee will close down two of its standalone facilities and shift production back to individual stores. Both facilities will close following shifts on June 24.

The first facility, located in Chariton, Iowa, provides fresh-cut fruit and vegetables, while the other, in Ankeny, Iowa, makes take-and-bake pizzas, salads, sandwiches and baked goods. Together, the facilities employ 461 associates, which Hy-Vee says it is “committed to assisting all impacted employees during this transition" and placing as many as possible within its stores.

"This move will significantly improve product freshness, quality, availability and customer service as more employees will be placed in retail stores," a news release said.

Hy-Vee believes the move will get it back to being an even stronger grocer. 

"Now sandwiches produced in the stores can add tomato, lettuce, onion," the company said. "We can't do that when everything is made in the commissary and shipped. When it is done in the store, everything is fresh."

The grocer will continue to own the two production facilities after they shutter, and says it could use them to manufacture more shelf-stable products or possibly repurpose them for different uses.

Employee-owned Hy-Vee operates more than 570 business units across nine Midwestern states, with sales of $13 billion-plus annually. The West Des Moines, Iowa-based company is No. 38 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.