News Summary
Hy-Vee has officially canceled its plans for a new grocery store in Bartlett, Tennessee, after construction was paused last year due to financial pressures. The city plans to develop a Crunch Fitness at the location instead. Hy-Vee is now focusing on expansion efforts in Indiana while acknowledging challenges like high interest rates and construction costs. The company had initially aimed to expand beyond the Midwest but has since halted projects in other Tennessee locations. Despite setbacks, Hy-Vee is still planning new stores in Murfreesboro and Spring Hill, Tennessee.
Tennessee – Hy-Vee, the Midwestern grocery chain, has officially canceled plans for a new store in Bartlett, Tennessee, a suburb of Memphis. The decision comes after construction had already been put on hold last year, as the company re-evaluates its expansion strategy in response to financial pressures.
The city planning commission in Bartlett is moving forward with a plan to install a Crunch Fitness at part of the site originally designated for the Hy-Vee store. This development indicates a shift in the area following Hy-Vee’s withdrawal.
Hy-Vee spokesperson Tina Potthoff confirmed that while the company still owns property in Tennessee, it is now prioritizing expansion efforts in Indiana. Currently, there is no construction timeline established for any locations in Tennessee, including Memphis.
Originally, Hy-Vee planned to expand its presence beyond the Midwest, with additional stores proposed in Louisville, Kentucky; Nashville, Tennessee; and Indianapolis. However, the company has also halted plans for a store in Knoxville, Tennessee, and removed Alabama from its list of future expansion states.
Bartlett Mayor David Parsons has acknowledged that the grocery chain cited high interest rates and soaring construction costs as key factors in its decision to pause expansion plans. This aligns with other reports indicating delays in Hy-Vee’s construction projects, particularly in Indiana, where planned stores in Fishers and Zionsville have also been put on hold due to the escalating costs.
In March, there were signs that construction for a Hy-Vee store in Bardstown, Kentucky, was still being considered, but specific timelines have yet to be released. Market analysts continue to express skepticism about Hy-Vee’s ability to hold its own against larger competitors such as Kroger and Publix, although some analysts see potential for the chain in more affluent areas.
Founded in 1930, Hy-Vee has grown to become the largest employer in Des Moines, Iowa, with over 240 stores spanning eight states. The company has recently expanded its footprint by acquiring Strack & Van Til stores in Indiana. Despite the recent setbacks, two new stores are being planned for Murfreesboro, Tennessee, reflecting significant population growth in the area.
The Murfreesboro store is set to be larger than most, exceeding 153,000 square feet and featuring a liquor store, while a Spring Hill store will be approximately 116,000 square feet and include a gas and convenience store. Additionally, to enhance customer service, Hy-Vee plans to utilize AI robots for grocery orders at these new locations.
Construction of a large distribution center in Cumming, Iowa, is ongoing and is expected to influence the company’s future expansion efforts positively. However, Hy-Vee’s CEO, Jeremy Gosch, has recognized various challenges, including inflation, construction costs, and rising inventory expenses, which are currently hindering the company’s growth trajectory.
As Hy-Vee reassesses its strategies and focuses on financial sustainability, the future of its expansion in Tennessee and beyond remains uncertain, prompting local communities and potential investors to watch the developments closely.
Deeper Dive: News & Info About This Topic
- Des Moines Register
- Wikipedia: Hy-Vee
- Supermarket News
- Google Search: Hy-Vee expansion Tennessee
- Nashville Post
- Google Scholar: Hy-Vee Tennessee
- Axios
- Encyclopedia Britannica: Hy-Vee
Author: STAFF HERE KNOXVILLE WRITER
KNOXVILLE STAFF WRITER The KNOXVILLE STAFF WRITER represents the experienced team at HEREKnoxville.com, your go-to source for actionable local news and information in Knoxville, Knox County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Dogwood Arts Festival, Big Ears Festival, and Knoxville Asian Festival. Our coverage extends to key organizations like the Knoxville Area Chamber Partnership and United Way of Greater Knoxville, plus leading businesses in healthcare, education, and energy that power the local economy such as Covenant Health, University of Tennessee, and Tennessee Valley Authority. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
