Latest / GrocerTalk / Hy-Vee’s Jeremy Gosch on the Future of Grocery and What’s Next for the Retailer | Groceryshop 2026

Transcript

Hy-Vee’s Jeremy Gosch on the Future of Grocery and What’s Next for the Retailer | Groceryshop 2026 · GrocerTalk

• 0:00
  Hello, everyone.
• 0:01
  This is Omnitalk Retail.
• 0:02
  I'm Ben Miller, host of grocertalk, and I'm coming to you live from Las Vegas from the Vuzion podcast studio.
• 0:08
  That's booth 913 here at grocery Shop.
• 0:11
  And joining me now is Jeremy Gosch, chairman and CEO of Hy Vee.
• 0:16
  Welcome to the podcast, Jeremy.
• 0:17
  Hey, thanks, Ben.
• 0:18
  Glad to be here.
• 0:18
  Oh, you and I have literally just walked off stage after your keynote after reading some conversation you lived to tell the tale.
• 0:25
  I did, yeah, we did.
• 0:27
  Fantastic.
• 0:27
  So look, what I want to do is just recap some of the key messages and I think a bit of scene setting.
• 0:32
  I think the reason that the Grocery Shop team invited you to come and the reason that we were so keen that you came and joined us on the pod, Jeremy, is in a background where supermarket format stores and
• 0:43
  retailers right across the country are losing share.
• 0:45
  You're not, you're gaining share.
• 0:47
  So the conversation that we just had that I'd love to hear your thoughts on again, was all about, okay, how are you booking the trend?
• 0:55
  So let's kick off with the standard.
• 0:58
  Tell us a quick intro to Hy Vee.
• 1:00
  There'll be people who listen to the POD and shop at Hy Vee every week.
• 1:04
  There'll be people who are less familiar and might not know the unique kind of structure of the organization.
• 1:09
  Yeah, so we are a grocery retailer in the Midwest.
• 1:12
  We were founded in 1930 and we go to market with food stores.
• 1:16
  We also have fuel, we also have pharmacy, we also have a bank, we also have a PBM and obviously a variety of different ways that we go, our own distribution and things like that.
• 1:26
  So it's pretty much who we are.
• 1:29
  Can you describe to everybody the kind of the pharmacy link?
• 1:33
  Because I think this is central to some of the conversations that we're going to have later.
• 1:36
  Just how much healthcare is integrated into your business.
• 1:39
  Yeah, you know, our mission statement is making lives easier, healthier and happier.
• 1:43
  Obviously, the second comment there, the healthier really dictates into our health space.
• 1:48
  So if you think about, you know, the ability and the reach that we have with customers in our store and you know where our stores are located, we've got access to customers through our pharmacy to really help them
• 2:00
  on their health and wellness journey.
• 2:01
  So, you know, we've also got dietitians in stores that are able to help them as well.
• 2:06
  So healthcare for us isn't really a bonus add on.
• 2:09
  It's really core to what we do and who we are to try to help Our customers, frankly live easier, healthier and happier.
• 2:14
  And we think that really starts with the better they feel, you know, the better they're going to live.
• 2:20
  Okay, so Jeremy, when you introduced the company, you very bashfully didn't mention your market leader in the markets in which you operate.
• 2:26
  So how do you go about doing that and differentiating yourself as a regional grocer at the moment?
• 2:32
  Yeah, I think for us, you know, price in this day and age is table stakes.
• 2:36
  So we just took a stand that we're going to be priced right on the top items.
• 2:40
  And then really beyond that, you got to offer an equation of service and quality.
• 2:44
  And so we've made a lot of different decisions to put quality first, to make sure that we are partnered with the best growers in the country.
• 2:51
  We're partnered with the best meat producers in the country.
• 2:54
  All of our beef comes strictly from the Midwest.
• 2:56
  We will never fray from that because it's who we are.
• 2:59
  You know, we put quality first.
• 3:01
  Our bakery is all a scratch bakery.
• 3:03
  Our food service will continue to evolve to match the needs of the customer today.
• 3:07
  And that's really how we see the strategic advantage that we have.
• 3:10
  We are very agile.
• 3:11
  We're running with store level autonomy, where our store directors are out there and able to make decisions for their market, which is obviously a differentiator for us because Kansas City is different than Minneapolis just climbing alone.
• 3:25
  So they're able to adjust and adapt as they need to, both with selection and also with what they're carrying.
• 3:30
  So it just makes a massive impact for us and that's just how we go to market to succeed.
• 3:34
  Okay, so you locally tailor range.
• 3:37
  When you talk to people, it's very easy to talk about best in fresh, best in produce, high quality fresh.
• 3:44
  But if you're not careful, all that just makes the underlying stores become too expensive.
• 3:48
  But yeah, you went really bold on price matching and making sure that you were the shops in the market.
• 3:53
  How do you square that circle?
• 3:55
  Yeah, you know, we're very bullish on making sure that we're priced right, especially across the core.
• 4:00
  So, you know, we really go out and go at it different with the variety and the selection that we use.
• 4:05
  You know, we'll.
• 4:06
  We've got a health market that's going to be very keen on the customer lifestyle of today, giving them healthy options, natural options.
• 4:13
  You know, we focus on organics and produce, we focus on grass fed beef and all of the different avenues you have there of, you know, free range, you know, chicken and all those kind of things that we make
• 4:24
  sure that we've got the full gamut of what people want and, you know, on the table stakes items, you know, we're priced right and then we've got a lot of variety in order for us to be able to
• 4:33
  give consumers truly what they want.
• 4:35
  I mean, and frankly, give them the best value we can give them.
• 4:37
  We spend a lot of time negotiating on price with all of our suppliers.
• 4:41
  And we will never sacrifice quality, though.
• 4:44
  And that's kind of the key, you know, as we message that we move forward, you won't be disappointed when you shop with us and we'll make sure we meet you where you're at.
• 4:51
  And how does private label fit into that?
• 4:53
  Yeah, you know, we developed 1400 private label items last year alone.
• 4:56
  You know, we've really taken that under our own roof to make sure we have complete ownership with the customer.
• 5:01
  Today, most of the customers understand that private label and major label, there's very little difference.
• 5:06
  So we've got a two tier private label program.
• 5:08
  We've got basically an opening price point and then we've got our Hy Vee label.
• 5:11
  And so we're able to really go out between the two and be able to compete with anybody in the country on price and, you know, then continue to innovate with, you know, private label items that also meet the
• 5:22
  customers.
• 5:23
  We've got a line called Nothing but the Truth.
• 5:24
  It's a high V label item that's frankly, you know, natural ingredients, no additives and things like canned green beans or tomato sauce or whatever the center store item is.
• 5:33
  And that's located in our health market.
• 5:34
  But those are things that we're doing to continue to meet the customer and using private label and own label as an advantage for us as well as we continue to grow that out as well.
• 5:44
  And we also have it, you know, control label, private label in our fresh departments, meat department, produce department, where we have exclusive items that we're able to carry that again, you know, fill the basket for the customer.
• 5:55
  Jeremy, one of the things that really interests me when we were talking is it's really understandable and it's drive to affordability and price to experiment with formats, to experiment with propositions.
• 6:06
  You created something called the Dollar fresh market.
• 6:08
  You're now rowing back from that.
• 6:09
  Talk us through that.
• 6:11
  Yeah, you know, we're not afraid to try things at Hy Vee and I think that's part of our DNA.
• 6:15
  And so we launched Dollar Fresh Market and it was really focused on small communities and really focused on areas that were underserved with groceries.
• 6:24
  And so we went in with a different brand.
• 6:26
  And looking back at that, when you've got a 96 year old brand, it's hard to then launch a new brand that's going to have the same impact.
• 6:32
  So what we found when we made those and started converting those to Hy Vees, the customer was much more receptive.
• 6:39
  But in doing so, you know, we added basically a Hy Vee produce department, we added a service meat department, we added a bakery into those stores that they didn't have before, which is what the customer was looking for.
• 6:50
  Because I think the customer, whether they live in a town of 2,000 or 200,000, they want similar experiences.
• 6:56
  And I think that's what we found is that we need to make sure we get those experiences to the towns of 2,000 and 200,000.
• 7:02
  So obviously the store box isn't as large as the bigger communities, but the offerings, we can do some of the same things.
• 7:09
  And that's what we found is we think is going to be a better model for us moving forward.
• 7:12
  Okay, so it's taking a fuller proposition to towns that might not have experienced it before.
• 7:16
  Absolutely.
• 7:17
  Okay, Larry, let's change tack.
• 7:19
  Let's talk about health.
• 7:19
  I know it's so important to you personally, it's so important to Hy Vee.
• 7:23
  Talk me through some of the things that you're doing to help your communities live healthier.
• 7:27
  Yeah, you know, we've got to focus on really helping people understand, you know, that's why we have dietitians, it's why we have the pharmacy is we feel like it's a destination for helping you live healthier.
• 7:39
  And we feel like if you are able to make some changes and live healthier, you will feel better.
• 7:45
  And that's the key crux of, you know, what we're trying to do for customers.
• 7:49
  So if you think about, you know, people going on to a GLP1, we're offering resources for dietary changes through our dieticians, through some programs on our app, through our website that really help consumers navigate the need to increase
• 8:01
  fiber, increase protein, and really change the mix of what they're consuming and really help them through that, offer the products that they need and make sure we're first to market in any of those products that they may be
• 8:11
  looking for.
• 8:11
  And then, you know, also looking at different areas for the consumer.
• 8:15
  Like I think about senior, you know, we do senior wellness days, which we help senior citizens navigate some, some decisions and some things for them, whether it's flu season or Whatever, where they have access.
• 8:25
  We offer them a good deal on breakfast, let them sit down in our sit down areas and we, we have our pharmacists talk to them about opportunities that they have, you know, you know, and what they can do
• 8:34
  to be more healthy.
• 8:35
  So just a variety of ways that we're able to integrate into the communities using our pharmacy and dietitians.
• 8:41
  I mean it's a really interesting kind of practical example that the help that you're giving to people on GLP1, how does this impact your ranging and merchandising decisions?
• 8:48
  Yeah, I mean for us, you know, merchandising, you know, we want to make sure we stay with what they're looking for so we make sure we stay on top of those items in the mix.
• 8:56
  And then we also, you know, as we were talking, we host a supplier summer, we bring in some new suppliers from all over the country.
• 9:03
  We just did it two weeks ago and we, we bring in these suppliers and we let them do a pitch.
• 9:08
  It's kind of like Hy Vee Shark Tank a little bit version, but we pick up 80% of them into our distribution network.
• 9:14
  80%.
• 9:15
  And then we also will give them money.
• 9:18
  The top three finishers get money to help seed their startups.
• 9:21
  And so what happens is a lot of these companies, as you can imagine, are trends.
• 9:26
  I mean they're really hitting on the trends, they're hitting on the health and wellness.
• 9:30
  So it lets us be first to market with a lot of these people that are really on the forefront of products that are really, really good products that are, whether it's, you know, electrolytes in your water to help
• 9:40
  you hydrate better, whatever it may be, you know, they're really coming up with some great products and I was just amazed walking through with some of the ideas and innovation that these folks had.
• 9:49
  So it's really a great avenue for us to be able to continue to be quick in the merchandising front and adapt to what the customer is looking for.
• 9:56
  Okay, Jeremy.
• 9:57
  We've hit on value and affordability, we've hit on health and wellness.
• 10:02
  Probably the third of the big trifecta of the show is E commerce and speed of delivery.
• 10:07
  How do you think about that at Hy Vee?
• 10:09
  Yeah, we're continuing to evolve.
• 10:10
  You know, we've been doing E commerce for, you know, almost 15 years now.
• 10:14
  Started in 2013.
• 10:15
  So for us, we're working on our site.
• 10:17
  We gotta be able to shop it faster.
• 10:19
  It's gotta be more intuitive.
• 10:20
  And so we're getting Ready to relaunch that right after the first of the year with a complete rewrite that I think the customers are really going to enjoy.
• 10:27
  We've sped up delivery.
• 10:29
  We've got a 30 minute option for delivery right now, which I think is just table stakes today.
• 10:33
  The customer wants it when they want it, the quicker the better.
• 10:36
  And so we've done that, continue to do that.
• 10:39
  You know, our pickup continues to get faster and we're not perfect.
• 10:42
  I'm not advocating that we are.
• 10:43
  But our goal is we're trying to get cars in and out in three minutes when you pull up to our stores so that you're able to pick up your E Commerce order and go.
• 10:51
  But it just becomes the fact of the matter is most of these customers still are shopping in store as well.
• 10:56
  I mean, you know, it's the omnichannel, the big buzzword, you know.
• 10:59
  So we've got to make sure that our experience is just as good online as it is in store and vice versa, and then make sure the shopping experience online is as good as the shopping experience in the store.
• 11:08
  And the pickup is just like our front end.
• 11:10
  We always call it our second front end.
• 11:12
  The pickup outside has got to be just like we treat our front end, with service and with, with friendliness and with speed.
• 11:17
  And that's really what we're trying to do in E Commerce in order to continue to grow it forward.
• 11:21
  Great.
• 11:22
  Jeremy, let's get out of here.
• 11:23
  On one last question, you told me when we were on stage that you've been voted the best employer in your region, in your state.
• 11:30
  You correct me, which I'm wrong for the last couple of years.
• 11:32
  Oh no, we got our employees vote.
• 11:34
  It's a great place to work.
• 11:35
  And so our employees get a survey and then if they get certain response rates.
• 11:40
  So for the second year in a row, we've been voted a great place to work, which is a testament to our people, our team, our store directors, all the folks out in the stores that are just doing a
• 11:47
  fantastic job every single day.
• 11:49
  So I couldn't be more proud and.
• 11:50
  Give me the how because that's not an easy thing to achieve in a retail organization.
• 11:53
  Because working retail is hard.
• 11:55
  How have you done that?
• 11:56
  Yeah, I think we've done a really, you know, a good job being conscious with our, you know, not only our benefits, what our people are doing, and just taking our store directors, just taking really good care of our
• 12:05
  people out in the field.
• 12:06
  Because at the end of the day, you know, 95% of our employees are all out in stores and taking care of our customers every day.
• 12:11
  So it's a testament to our employees out there and our store directors that are just doing a fantastic job.
• 12:15
  Job.
• 12:16
  What a great place to finish.
• 12:17
  Jeremy, thank you so much for joining us.
• 12:18
  Absolute pleasure to have spent the last hour or so with you.
• 12:21
  Thank you for listening in.
• 12:22
  Thank you to our partners at Fusion and the Grocery Shop team for making all of our live streams at the event possible.
• 12:28
  And please stay tuned for more.