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Hy-Vee will keep smaller store at 48th, Leighton

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BY MATT OLBERDING / Lincoln Journal Star

Friday, Mar 14, 2008 - 07:06:17 pm CDT

What a difference a month makes.

On Feb. 13, University Place neighborhood residents formed a group called Release the Lease to protest Hy-Vee’s  lease restriction that prevents another grocery store from occupying the space it is vacating at 48th Street and Leighton Avenue.

On Friday, after weeks of neighborhood criticism and media coverage, Hy-Vee announced plans to develop a new format that will keep a grocery store in the area.

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Customers react to plans for Uni Place

Hy-Vee said Friday it would test a new, smaller store format at its location on 48th Street after that store is relocated to 84th and Holdrege.  ...

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Resident react to Hy-Vee announcement

The company’s plans include what it calls a smaller concept store of 20,000 to 25,000 square feet in the old Hy-Vee, which is closing for good on Sunday.

The store will be a first-of-its-kind experiment for Hy-Vee, which has been closing smaller stores and building only large supermarkets for several years.

Hy-Vee spokeswoman Chris Friesleben said details, including a timetable and name, are being worked out.

“There are some names being considered, but no decisions have been made,” Friesleben said.

She said the store’s name likely will be something other than Hy-Vee.

 In a news release, the company said the smaller store will have less variety than a traditional Hy-Vee store, but customers will find most products that are in its larger stores, including produce, dairy and meat departments.

“We think there is a value in developing a smaller store model with a limited assortment of merchandise,” Hy-Vee CEO Ric Jurgens said in a statement. “It was important to us to come up with a format that would be intriguing, practical and successful. We think we’ve found one.”

Diane Walkowiak, a member of Release the Lease, said that as described, the store would be acceptable to the neighborhood.

“If this store does indeed go into University Place, we will be satisfied,” she said. “All we have ever wanted is to retain a reasonably sized grocery store.”

Hy-Vee said the store’s floor plans are being drawn up, and more details will be released within four to six weeks.

Once plans are approved, the company said, it will set a timetable for construction and re-opening.

Friesleben couldn’t say when the new store might open.

“We’re trying to figure it out right now,” she said.

While she said Hy-Vee plans to move forward quickly, the company wants to make sure it gets everything right.

In the meantime, the company plans to offer a free shuttle bus four days a week to the new store at 84th and Holdrege streets, which is set to open at 6 a.m. Tuesday.

For neighbors, that likely will be an acceptable short-term inconvenience, considering they could have been without a neighborhood grocery store for years.

Hy-Vee had come under heavy criticism from Uni Place residents and some current and former city officials because of lease terms that allowed it to keep another grocery store from occupying the space until 2014.

The company said the lease restriction is a standard procedure to protect the $30 million investment it is making in new Lincoln stores at 84th and Holdrege streets and 50th and O streets.

The lease restriction came to the forefront during a January City Council meeting during which Councilmen Doug Emery, John Spatz and Jonathan Cook voted against a liquor license renewal at another Hy-Vee store to show their displeasure over the company’s decision on the University Place store.

“I never thought that a single vote on the council to express displeasure with a policy could take on this magnitude,” said Emery, who represents northeast Lincoln, which includes the Uni Place area.

Emery said the issue was never about “denigrating” Hy-Vee.

Instead, it was about trying to get the company to re-examine an inflexible corporate policy that on the local level had the potential to be devastating to a neighborhood.

He praised Hy-Vee for changing its plans.

“I applaud their effort. I applaud the fact that they listened,” Emery said. “I think it is a win-win for everybody.”

He also said Hy-Vee’s change of heart proves “you can make a difference.”

Walkowiak agreed.

“This definitely proves that community activism can work. It can make a difference; it did make a difference in this situation,” she said. “In one month, we were able to turn things around.”

Reach Matt Olberding at 473-2647 or molberding@journalstar.com.


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KS wrote on March 14, 2008 9:21 am:
" I am very glad to hear this. I am a former resident and Wesleyan student who lived in the area for several years and relied on that store for many things. Thanks Hy-Vee for listening and keeping an anchor in University Place. "
YIPEE wrote on March 14, 2008 9:46 am:
" Good for the Release the Lease group. I don't even live in the Uni Area (although I do shop at that Hy-Vee sometimes) and I was going to boycott the new store because I think that it was definitely wrong for them to leave the area without a grocery store. So hurrah for the little guy! "
Steve U wrote on March 14, 2008 9:48 am:
" Good job Hy-Vee! Thanks for being a good corporate citizen! I live a few blocks from the new 84th & Holdrege store, but was planning on continuing to shop at Super Saver because of the Uni Place situation. You've earned yourself a customer! "
RS wrote on March 14, 2008 9:51 am:
" I guess I'll wait and see what the store looks like when complete. For quite a while HyVee paid lip service to those in the Uni Place neighborhood, and their comments now about being excited to try a new, smaller-store model don't ring with much sincerity. They likely felt pushed into a corner with all the negative publicity they're received - and rightfully so. How does this affect me personally? I was prepared to never shop at any HyVee again, but if they follow through on their promise I will remain a customer. "
Pat wrote on March 14, 2008 9:51 am:
" Hy Vee is trying to save some face and realiZed they made a mistake. Put a Russ's market in there "
Comm UnSense wrote on March 14, 2008 9:52 am:
" If the new store gets one complaint about high prices or small selection, HyVee should close it and proceed with their previous plan. "
wow! wrote on March 14, 2008 10:00 am:
" yea!! im sooo excited! this is so convenient for me and my family who live close by. thanks!!! "
Congrats wrote on March 14, 2008 10:03 am:
" Congratulations to the neighborhood and Release the Lease. Thank you Hy-Vee for listening. "
no wonder wrote on March 14, 2008 10:22 am:
" No wonder business do not want to come here you all want this town to be small and have small town attitudes. Folks it was a smart business decision they did years ago when they signed the lease. No different than Subway or Blimpies does wuith their franchises. Can only have so many in an area. Grow up Lincoln "
There you go again wrote on March 14, 2008 10:26 am:
" Hy-Vee is looking at doing this in more than one place. This explains why they would not release the lease. A few other stores are exploring this concept, too. I hope a few city leaders will learn a lesson from this, though I'm not optimistic. Hy-Vee is building a new store that the city BEGGED them to build at 50th and O. Hy-Vee will use TIF to help with the construction. Later, when a few city council people didn't like the 48th and Leighton situation, they tried to use the TIF as leverage to force Hy-Vee to change their strategy. Two points...1) if the city has conditions like that when using TIF or other incentives, its reasonable for those conditions to be up front 2) city government cannot understand various businesses (like the grocery business) the way those in the business understand it. Hy-Vee is a nice company. Let them operate. "
DR wrote on March 14, 2008 10:27 am:
" Congratulations Uni Place. If this goes through, you will have accompolished a great thing. "
Lisa wrote on March 14, 2008 10:34 am:
" so how long till we have the smaller grocery store back? 4-6 weeks to draw up plans... Guess we'll probably see something 12 months from now.

Sorry, but I'll believe it when I see it. Till then, Wal-mart and Super Saver. "
Doug Emery wrote on March 14, 2008 10:40 am:
" I want to thank Hy-Vee for listening to the needs of the community and being flexible enough to try to find a win-win for Hy-Vee and the community. It is now up to the people in the area to prove Hy-Vee made a good choice and the free market will now be the judge. Despite of some of the shots taken at Uni Place and the Release the Lease committee, this shows that being community active can make a difference. It takes activism and a company willing to listen and be flexible. "
Bob wrote on March 14, 2008 10:49 am:
" Hy-Vee should be applauded for coming up with solid compromise. Although cliche, it's smart to listen to those who put the money in your pocket. The only negative is that they should have used more forethought and solved this issue earlier. That's a mood point now...nice to see a compromise between citizens and Hy-Vee. "
Hy-Vee Shopper wrote on March 14, 2008 10:52 am:
" Good job HyVee. I was able to visit a store in Omaha that was the smaller version and it had everything you could ask for. "
Dano wrote on March 14, 2008 10:58 am:
" Have to agree with the comments, Since I have extened family in the area and used to live there meyself for some time. This is good news for the neighborhood.

And I hopes this works out. I am glad that Hy-vee is respecting the citizens it might have been shunning, and thusly, placing a negative attitude toward it from the public. Good work by all. "
Do the Right Thing wrote on March 14, 2008 11:26 am:
" Kudos to Hy-Vee for taking the high road! And congratulations to the Uni Place neighborhood for working with Hy-Vee to resolve this issue. I lived near the 17th and Washington then B & R IGA back in the early '80s while I was a UNL student and I know how important it was to have a nearby grocery store. I depended on my own legs, an old Schwinn 10 speed, and public transportation back then. I don't have a Hy-Vee close to me now, but I'm willing to drive the extra distance for the quality and the service--when I'm not shopping at a locally owned Russ's, another high quality shopping experience! "
Debra wrote on March 14, 2008 11:31 am:
" This is great news for the community, as long as the pricing on their items doesn't go up as a result. Lack of selection isn't something I'm worried about with a smaller store - it is expected - but if the pricing goes up, they might as well have kept to their original plan. Pricing people out of the market isn't going to help the people in this neighborhood. However, if they keep their pricing the same, I will support this store happily and with regularity (and will shop at their newer stores when I need the things the smaller store doesn't carry). It is too bad that the public outcry over the lease practice is what was needed to get them to see there is a reason to try to keep the store open in some way, but I am willing to support Hy-Vee for responding. I will be anticipating the plans and timeline for opening of the smaller store. "
Cindy wrote on March 14, 2008 11:45 am:
" great news! I used to live in that area and shopped there a few times a week; I'm glad to see Hy-Vee doing that. "
Rich wrote on March 14, 2008 11:54 am:
" This just goes to show how big business plays people like a fiddle and just how stupid we really are. They have been able to be advertised without spending hardly a penny on from their budget. From TV time to public talk Hy-Vee got just what they wanted for FREE! It's really sad that we can be used like that by a business that is only out to take your money. "
Doug Emery wrote on March 14, 2008 11:54 am:
" There you go again, I agree with you on the fact that the situation with the lease and Hy-Vee should have been taken care of during negotiations. Unfortunately it was not. This is NOT about a neighborhood store in every neighborhood but rather about a destination store in an area that that largely has limitted mobility. As the representative of that neighborhood I would have been negligent by not going to bat for Uni Place. I was not on the council when the agreement was made and I consider the residents to be caught in the middle. The discussions with Hy-Vee were NEVER rancorous and Hy-Vee simply saw that a niche was going to be created as stores moved out of older neighborhoods. This is a Win-Win for everyone and no city council person ever "threatened Hy-Vee's TIF" nor said anything bad about Hy-Vee. We simply felt it was a bad community policy and one that was inflexible. Apparently Hy-Vee decided the same thing after review and discussions. Would the same result have been accomplished without the city council persons making the public aware? Since no progress had been made before that I would say no. If our
"leverage" made this compromise possible than I think it was good thing. Whatever caused this change of Hy-Vee's mind, I salute them and I will assist them in their new endeavor "
There is a God!! wrote on March 14, 2008 11:56 am:
" Thank you Hy-Vee for caring. I look forward again to the "helpful smile in every aisle" which I would have missed because I wouldn't have continued to patronize your stores.
We who shop at Hy-Vee have never been unawares that their pricing can be a bit higher than other stores. However, it is a small price to pay for the convenience of a store that is easy to navigate for the elderly and disabled, for the hands on attitude of their employee/owners, for the social opportunities that this Hy-Vee provided and for the ability to still drive up for your groceries.


They really live up to the word "neighbor". "
A new Hy Vee employee wrote on March 14, 2008 12:03 pm:
" Living in the area and a regular customer at 48th & Leighton, I too was appalled at the situation. After being caught up in a corporate downsizing, I was forced to look for an extra job and wound up being hired at the 84th street store. I've learned a lot about the corporation in my time training for the grand opening, and, while I once thought they were just another greedy corporation only interested in the bottom line, I have learned that Hy Vee is run by genuine people and are not the evil, community destroying corporation they have been made out to be. Yes, money is at the root of everything, but they actually do, and obviously have, listen and I wish them all the best in this new endeavor. They will be running a shuttle to the new store for those that cannot travel to it, most likely until the smaller store opens. They have also opened up a lot of employment opportunities for many residents, and now will be adding more. I will remain a faithful customer, and now an employee, of Hy Vee. What a concept - a corporation, and an employer, actually interested in the community they serve, and the employees they hire. Two thumbs up Hy Vee! "
Nina wrote on March 14, 2008 12:12 pm:
" I would think they could keep a store here. In Iowa, it seems every small town has a little Hy-Vee, nothing like the giant-sized ones we're used to seeing here. With Lincoln's population in that area, I'm sure they could do just as well here, if not better, as in those small Iowa towns. "
MS wrote on March 14, 2008 12:37 pm:
" Thank You HyVee! The lease agreement is understandable, but the facts show that neighborhoods are destroyed when the local grocery moves out. One thing that HyVee humbly doesn't point out is that each of their new stores will employ 350 ADDITIONAL employees! 700 new jobs in Lincoln in one year. Verizon brings in 800 jobs and the city rolled out the red carpet, but HyVee quietly makes a huge investment in Lincoln. "
Problem? wrote on March 14, 2008 2:55 pm:
" Seriously? Isn't there a Super Saver within 8 blocks and the new Hy-Vee will be 9 blocks away from Uni Place. If you drive to this store, you can drive to the new store.... "
PW wrote on March 14, 2008 3:16 pm:
" Hy-vee was pushed into maybe keeping a little store, I
don't applaud them, they didn't care about anything but
the big bucks. Sure there's little stores in little towns
in Iowa, they thought they had Lincoln by the neck and
could force them into the big buck stores. There needs
to some competition, this is what you get when you pacify
one business. Frankly grocery shopping is so limited
in Lincoln and expensive, I go out of town and state! "
Jalengrma wrote on March 14, 2008 3:16 pm:
" Good for Hy-Vee for being a responsibnle and caring business. They did not have to go to this measure but because of the concerns of neighborhood residents who have done business with the store they have found a way to make it work. I hope the area residents will keep doing business there and not make the company regret their decision. "
Tim wrote on March 14, 2008 4:00 pm:
" These people ought to thank HyVee and frequent that store alot. Since when it is any private companies responsibility to stay in business and lose money just to make it easier for people too lazy to go any of the other stores that ring the neighborhood? "
Bill wrote on March 14, 2008 4:37 pm:
" Hy-vee most likely did the proper thing. It takes a long time for a business to fit into a neighborhood and gain goodwill of the folks. To sweep that goodwill up and toss it into a dumpster is not a good corporate decision.
I am a customer at the 27th street Hy-Vee and had that area move once from 14th and Superior and have always wondered why there was a blockage on another grocery moving into that location while they moved to a stones' throw from Sam's SuperCenter and Walmart.
"
humm.. wrote on March 14, 2008 4:53 pm:
" I think it is great that Hy-vee has decided to keep a smaller store in the UNI area, however in that 4-6 weeks plus the time it will take to develop and reopen everything, what are the elderly consumers suppose to do? I can't imagine that they all have a way to get across town to the new one or even over to walmart or russ's.. Let me ask, were any of the consumers thought about when this whole thing was put into action. Don't get me wrong, I shop Hy-vee and am thrilled that there is another one opening north, however being a part of UNI all my life, I can't imagine what the people who depend on that store so much, are going to do in the mean time. "
lincoln student wrote on March 14, 2008 5:01 pm:
" thank you, hy vee! i live in this area and love the convenience of your store. i'm so glad to know it will be staying. i hope the new store opens soon! "
Ex-Iowan wrote on March 14, 2008 5:33 pm:
" It is common for the big European grocery chains like Tesco to have stores of different sizes in different locations, from storefronts on the main shopping streets to big supermarkets at shopping centers. I hope this is a successful model for HyVee and I look forward to shopping at the new-style Leighton store when it opens. Good job, Hy-Vee, for finding a progressive solution rather than just digging in and creating hardship in a nice Lincoln neighborhood--and good job Release the Lease for keeping the pressure on. "
Diane Walkowiak wrote on March 14, 2008 6:20 pm:
" The Release The Lease committee (www.releasethelease.com) is glad that Hy-Vee has decided to retain a presence in University Place. We are confident that the new store will be successful, and look forward to its completion.

Hy-Vee officials have assured us that they will keep the lines of communication open during the design and remodeling stages.

We want to thank the hundreds and hundreds of people who signed petitions, wrote letters, made phone calls, sent emails, and spent time and energy working on this issue. Hy-Vee would not be staying in University Place if you had not made your voices heard.

We thank Hy-Vee for agreeing to make this additional investment in our community, and for realizing that University Place needs a grocery store.

This has been one of the most exhausting but gratifying months of my life. I appreciate everyone's efforts. "
no wonder? wrote on March 14, 2008 8:01 pm:
" no wonder if your so unhappy in lincoln why do you stay here just leave with your big pie in the sky attitude and be gone already to Hy Vee thanks for caring enough for the neighborhood and for the city to do something right for you customers and not just looking at the bottom line this is a very stand up move and all but gone in the country as a whole maybe there is light at the end of the tunnel thanks for keeping hope alive in a little way it means a lot to many many people thank you "
Happy Happy Happy! wrote on March 14, 2008 8:08 pm:
" I'm so happy people working together can make a difference. It's significant that the announcement came just before Saturday's rally with the coverage coming with it.Whatever it takes! By the way a couple of people who commented about how close the 2 other stores are must not be familiar with Uni Place. They are at least a mile and a half to 2 miles from Uni. Get your facts straight! "
Rick wrote on March 14, 2008 8:39 pm:
" and yet when the students of LHS protest they were chastize "
Rick wrote on March 14, 2008 8:44 pm:
" to problem : thats the point alot of the older folks dont drive they walk to the hy-vee.would you want your grandma to walk an extra 8 to 10 blocks for a qt,of milk? "
TD wrote on March 14, 2008 8:49 pm:
" You people must be very very rich. I couldn't believe
a lady getting groceries at a Hy-Vee, nothing special,
three shopping bags and it was $298.34. Bananas .69lb!
I talked to my friend in the state I use to live in and
she said bananas were .39lb and never over .49lb. When I
lived there a couple years ago lemons were never over
.25 cent each, here your lucky to get one for a $1.00!!! "
North Lincoln homebody wrote on March 14, 2008 8:49 pm:
" This is great news and a big relief. I was completely prepared to not even consider shopping at any HyVee ever again. As soon as the new 48th & Leighton store is up and running to the shoppers' satisfaction, I'll be back spending my grocery money at their store(s).

Yeah, I know it's their right to run their business, blah, blah, blah. Those of you who minimize the situation and take hits at those of us who dared to speak out to a corporation we've supported for many years can just take a hike!

Many thanks, *Release the Lease*; to Doug Emery, John Spatz and Jon Cook, for their moral support; and also to the people who signed petitions and got this situation back on the right track. May Uni Place continue to thrive! "
John wrote on March 14, 2008 9:54 pm:
" Why did a grocery chain feel a need to stifle a neighborhood from having a grocery store in that bulding when they built a store approx. five miles distance. I would be more inclined to beleive they were protecting the new planned store not much more than two miles away at 50th and "O". I wonder if Supersaver powers are shaking in their shoes at the prospect of Hy-Vee coming across the street. "
Cat wrote on March 14, 2008 10:26 pm:
" Two things - Of -course- they originally wanted to block another grocery store for awhile. If you're a business, and you're moving stores, you don't want to say to another business "Hey, we're changing stores...want to come in and keep our customers?"

Now, they're willing to work on something. But the real truth will be shown soon. Will people go to the smaller store, or will they say 'oh, nevermind, they just aren't as big and don't have every thing I want right now'? They have to show interest with their feet, as it were, or the place will close. "
Doug wrote on March 14, 2008 11:48 pm:
" To those who think this is about convenience for those in Uni Place or that this is about spoiled people, I am sorry you just don't get it. This is about people who have limitted mobility and IF the Hy-Vee was open on 51st and O would still have an ADDITIONAL 25 blocks to travel. (The phone book says Leighton is 25 blocks north of O St)

And Tim, no one is asking Hy-Vee or ANY grocery store to "lose money" in University Place. We merely are asking for the market to decide whether a store is viable in the community. IF the people in the area don't patronize the store than it will fail, leave and the community will be responsible. But at least the community had the opportunity to make it a success. I believe Hy-Vee will find out this niche store will work fine and it will be a money maker for them and a boon to the community "
Megastores not for all wrote on March 15, 2008 2:08 am:
" My aunt in Grand Island has marveled at the size of the new Hy-Vee store there. She says it is HUGE and has everything you can imagine. What she can't understand how a city that size warrants 2 SuperWalmarts and now a mega Hy-Vee.

Mega stores are the ruination of America in my opinion. The main reason I shop at the Hy-Vee on 48th & Leighton is because as a disabled person navigating the mega stores (SuperSaver) is taxing. Just going to the grocery store is taxing.If you want a loaf of bread you have to go through the whole store to get to it. It's worth paying .25 more just to be able to park easily, walk in, walk down the aisle, grab a loaf and head to the register. In addition, as a disabled person I appreciate having someone bring my groceries to my car. It saves my energy for when I have to unload at home.
So I appreciate Hy-Vee staying. I live in Clinton Neighborhood...50th & O...not handy...84th & Holdrege..not handy ..North 27th..not handy, Supersavers not handy and taxing. Walmart...still taxing..and not handy.

Not everyone in the world loves a megastore. I think I feel more appreciated when I shop the neighborhood store.
So thank you Hy-Vee for the compromise.
"
To Bill wrote on March 15, 2008 9:47 am:
" I too was a dispointed customer when Hy-Vee pulled up from the 14th & Superior location. But I did something else Bill, I went to the new mega store once and switched to Super Savor. When I heard later about "the lease restrictions " at the former site I never went back. To any Hy Vee ever.
no smile in every isle....good riddens.
But I do hope they keep the UNI Neighborhood truly satifised and not go back on their word. "
Two Points... wrote on March 15, 2008 9:54 am:
" 1. The move to 84th St. was necessary because of the costs to repair the building on 48th St.
2. A number of Hy-Vee customers of all ages walk to the 48th St. store. As a college student in the '80's, I rode my bicycle and walked everywhere---never drove. Thanks for the shuttle---not everyone drives (or is willing to pay outrageous prices for gasoline!) "
Entrepreneurial Idea wrote on March 15, 2008 10:09 am:
" I don't live in Lincoln, but it is a former home of mine. Where I have relocated, they have grocery delivery service. Hy-Vee may want to consider a delivery service for people that are unable to leave the home or find it difficult to load and unload groceries from the vehicle to their home due to age, arthritis, or other disabilities. Even fully-abled business professionals may find they just don't have the time to go full-fledged grocery shopping. In the city I live, people can make a standard grocery order that is delivered weekly, and they can also call in for one time orders or whatever fits their needs.

This is the type of service Lincoln could use to help its residents. "
JMR wrote on March 15, 2008 11:03 am:
" Well one it could still take a couple years for a new store. Yeah that really helps the little guy out! I stopped shopping at HyVee when they choose to close started shopping at Super Saver then. Which that surprized me I started saving more money going there instead of Hy Vee.
But for walking to the store I will just go to Walgreens more!! So yeah for little store Hy vee closing n helping a big company like Walgreens buliding up more of their sales with all the walking crowd! "
dogma wrote on March 15, 2008 1:37 pm:
" This is to "Problem?" There are no grocery stores 8 blocks away from 48th and Leighton. The closest store is SuperSaver on 48th and O and that's almost 2 MILES away. For all of the people here in Lincoln who have to rely on buses and walking--Thanks HYVEE! "
Been done wrote on March 15, 2008 7:01 pm:
" Entrepreneurial Idea, been done. Hy-Vee does deliver. The personal shopper will shop for you for $7.00 and you pick up. If it's delivered it's $15.00. Ideal Grocery shops and delivers for $5. $15.00 is steep for a person on a fixed income. "

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