Hy-Vee's scouting Twin Cities sites for convenience stores 'on steroids'
Hy-Vee’s expansion into the Twin Cities is not just coming in the form of big-box grocery stores, but also with convenience stores that could shake up the C-store market locally.
The West Des Moines, Iowa-based grocer is searching for sites to build mini grocery stores with gas pumps, according to sources who declined to be named to protect business relationships.
The stores would be around 10,000 to 15,000 square feet, and one source called them “convenience stores on steroids” because they have more groceries and prepared food than a typical gas station.
The Twin Cities have long been dominated by Holiday and SuperAmerica, withKwikTrip adding more stores.
Between these new Hy-Vee convenience stores and the gas stations that come with its big-box grocery stores, Hy-Vee could take a big bite out of the C-store market in the Twin Cities.
The grocer has a loyalty program that gives its shoppers discounts on Hy-Vee gas. Adding more gas stations makes the rewards program more attractive. It also allows Hy-Vee to get into more markets where they might not be able to fit a full-size store.
It’s unclear how many of the small stores the company may open. Hy-Vee’s broker, Tom Palmquist of Colliers International Minneapolis-St. Paul, put out a flier seeking 25 sites that are two or three acres for a “mini grocery with gas.” He could not be reached for more information, and Hy-Vee said the flier was not sent on its behalf.
A Hy-Vee spokeswoman said the company operates stand-alone stores elsewhere in the eight-state region where the grocer has a presence.
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