Friday, Dec 20, 2024

These top grocery stores are dominating the Midwest from Hy-Vee to Cub Foods

Midwesterners love their regional grocery chains.
  • Placer.ai ranked the grocers with the greatest share of store visits in each of 12 Midwestern states.
  • The list is based on data from January and includes national grocers such as Kroger as well as regional players like Hy-Vee.
  • Much of the US is still dominated by local chains, though the potential merger of Kroger and Albertsons could put more of those banners under a single corporate owner.
Hy-Vee

Hy-Vee

Where it had the highest share of visits: Iowa (65%), Nebraska (41%), South Dakota (58%)

Headquarters: West Des Moines, Iowa

Number of stores: 285

Started as a single general store in 1930, Hy-Vee's stores today boast beauty sections and 24-hour Chinese takeout. They also have in-store restaurants, including Wahlburgers, Starbucks, and Caribou Coffee, and have partnered with Orangetheory to offer classes.

The chain came out on top by store visits in three states, according to Placer.ai's data. It also came in second in three other states: Kansas, Minnesota, and Missouri.

Hy-Vee's expansion plans are set to make it more than a regional favorite: The grocer is building stores in the Southern states of Alabama and Tennessee.

Meijer

meijer
People wear face masks as they leave a Meijer store in Detroit, Michigan on April 7, 2020.

Where it had the highest share of visits: Michigan (49%)

Headquarters: Grand Rapids, Michigan

Number of stores: 240

Around half of Meijer's stores are located in its home state of Michigan, partially explaining the chain's dominance in that state.

Regular shoppers are familiar with Meijer's 24-hour stores and weekly selections of items that go on sale for $1 each, according to Eat This, Not That. Some locations also feature nail salons and barber shops, the publication reported.

The company was founded in 1934 by Hendrik Meijer, who came to the US from the Netherlands. The grocery chain is still run by the Meijers, who rank among the wealthiest families in Michigan, according to Forbes.

One of Hendrik's great-grandchildren, Peter, gained national attention in 2021 after he was one of a handful of GOP members of the U.S. House of Representatives to vote for Donald Trump's second impeachment.

Kroger

kroger store sign

Where it had the highest share of visits: Indiana (35%), Ohio (43%)

Headquarters: Cincinnati, Ohio

Number of stores: 1,332

Kroger operates stores around the US under a variety of names, such as Ralph's in Southern California or Harris Teeter in the mid-Atlantic. But about half of the company's stores run under its own name and have a big presence in Ohio, the chain's home state, as well as neighboring Indiana.

Kroger shoppers in those states often have access to the latest grocery shopping technology before the rest of the nation, such as smart shopping carts and delivery from automated warehouses for delivery orders.

Kroger's influence is set to grow, both in the Midwest and nationally, if its proposed $24.6 billion merger with rival Albertsons is approved by federal regulators.

Cub Foods

Cub Foods Logo

Where it had the highest share of visits: Minnesota (31%)

Headquarters: Stillwater, Minnesota

Number of stores: 100

Cub, founded in 1968, got its name from one of its cofounders, Culver Davis, Jr., whose nickname was "Cub." While it started in a small town on the edge of the Twin Cities of Minneapolis and St. Paul, the company worked its way into the heart of the metro area over the next couple of decades.

A few years ago, Cub's corporate owner, UNFI, was reportedly considering a sale of the chain as it faced challenges from other Twin Cities grocers, including Hy-Vee, Aldi, Walmart, and fellow Minnesota-based retailer Target, the Minneapolis Star Tribune reported in 2022.

But Cub's response to the pandemic, including keeping basics in-stock, helped it defend its market share and ward off rivals, according to the newspaper.

Schnucks

The entrance of a Schnucks supermarket, featuring tan bricks and the red "Schnucks" logo

Where it had the highest share of visits: Missouri (28%)

Headquarters: St. Louis, Missouri

Number of stores: 112

Schnucks takes its name from Edwin Schnuck, the St. Louis meat wholesaler who started his own business in 1937. But it was Anna, his wife, who spearheaded the company's first retail operation — a candy store — two years later, according to the company.

Today, Schnucks has stores in five states: Illinois, Indiana, Iowa, Missouri, and Wisconsin. It's also experimenting with a separate chain of natural and organic stores called Eatwell Market, industry publication Winsight Grocery Business reported in 2022.

Dillons

The Dillons logo, featuring the company's name in red letters and a cart in the shape of an orange slice

Where it had the highest share of visits: Kansas (42%)

Headquarters: Hutchinson, Kansas

Number of stores: 63

Dillons was among the first regional grocers acquired by Kroger in the 1980s, a string of acquisitions that created a supermarket with locations around the US.

Founder J.S. Dillon opened a food market in Hutchinson, Kansas, in 1913, according to the Rockford Register Star. Dillons market required customers to pay for their purchases in cash on the spot — a different approach from the custom at the time of paying on credit and settling up once a month.

The approach led to lower prices for customers, the Register Star reported.

Pick 'n Save

The Pick N' Save logo, featuring black-and-green letters, alongside a green outline of the state of Wisconsin surrounded by the words "Wisconsin Proud"

Where it had the highest share of visits: Wisconsin (22%)

Headquarters: Milwaukee, Wisconsin

Number of stores: 84

Kroger acquired Roundy's, which owns Pick 'n Save, in 2015 for $800 million.

Although Roundy's traces its origins back to 1872, the first Pick 'n Save stores didn't appear until a century later, when a recession forced Roundy's to come up with a new retail concept, the company says in a webpage on its history.

The stores were, as the name implies, for budget shoppers: The walls were plywood, and the company saved money by asking customers to write the prices on products with a crayon instead of applying labels, according to the company.

Cash Wise Foods

Cash Wise Logo

Where it had the highest share of visits: North Dakota (27%)

Headquarters: Waite Park, Minnesota

Number of stores: 26

Cash Wise is the discount chain of Midwestern grocer Coborn's. It has nine stores in Minnesota and North Dakota.

Like Pick 'n Save in neighboring Wisconsin, Cash Wise's originators saved money by asking customers to do tasks once reserved for employees, such as bagging groceries at checkout, according to the company.

Jewel-Osco

An elderly male shopper takes a box of Hostess Zingers cakes from a display of the company's snacks at a Jewel-Osco store in Chicago.

Where it had the highest share of visits: Illinois (27%)

Headquarters: Itasca, Illinois

Number of stores: 188

Chicago-area shoppers bought groceries at Jewel Food stores for the first half of the 20th century. Then, the company acquired Osco Drugs in the 1960s and opened a series of stores that sold both kinds of products, according to the company.

Today, the chain is owned by national grocer Albertsons. If Kroger's merger with Albertsons wins federal approval, the combined company could contain Jewel-Osco stores as well as locations run by Mariano's, Kroger's own Chicago chain.

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By: [email protected] (Alex Bitter)
Title: These top grocery stores are dominating the Midwest from Hy-Vee to Cub Foods
Sourced From: www.businessinsider.com/top-grocery-stores-dominating-the-midwest-2023-3
Published Date: Wed, 29 Mar 2023 14:06:20 +0000