30 June 2023 , 16:07
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Rumours of the announcement had been floating around social media for a week.
Then, Hy-Vee released a heartbreaking official statement — it's closing its North Ottumwa, Iowa, location.
"We recently announced to our employees that we made the decision not to renew our lease on the North Ottumwa Hy-Vee and will eventually close that location later this year," the official statement, provided to Supermarket News, reads.
Now, the store's employees are left scrambling to find jobs at nearby locations — and its customers must find other places to shop.
The major Midwest- and South-based grocery store chain will continue operating its South Ottumwa location as well as a drug store and two Fast & Fresh locations within the municipality.
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Hy-Vee notified its employees of the North Ottumwa, Iowa, store closure well in advance (Star Tribune via Getty Images)It's hoping to send employees from the North Ottumwa location to work at the other locations once the store closes.
"We believed it was best to let our employees and customers know as soon as possible," the company said.
It also wanted to give the building's leaseholder ample opportunity to find another business to occupy the space — leaving open retail property in the community wouldn't be good, the company said.
Hy-Vee hasn't yet announced an official closing date, but the supermarket said the location will "remain open over the upcoming months."
The question remains, however — what will happen to the store's loyal customers, especially those who rely on its pharmacy to fill their prescriptions?
Employees at the closing Hy-Vee will be moved to other local stores (Google Maps)They'll be given information on where and how to transfer their prescriptions, Hy-Vee said.
The company remains committed to the Ottumwa community and "will continue to invest in the local area" as well as its employees.
Hy-Vee is one of several major retailers making the shift to a primarily self-checkout format, joining giants like Walmart.
And that could be leading to store closures down the road.
In December 2022, Walmart CEO Doug McMillon told CNBC that "theft is an issue" and that "it's higher than what it has historically been."
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People are using the self-checkout features at stores to steal merchandise.
McMillon said increased shoplifting could ultimately lead to increases in prices or store closures if the problem isn't mitigated.
While it's unclear whether Hy-Vee has experienced similar issues, shoplifting is still a growing issue in the industry as a whole.
Hy-Vee currently operates over 240 stores across the Midwest and South.