Prominent Grocery Outlet Now Begins Closures in A Surprising State

May 21, 2024

A prominent grocery outlet now begins closures in a surprising state leaving shoppers frustrated and in fear of a ‘food desert’.

Hy-Vee announced the closure of its Cedar Rapids, Iowa location leaving the area without a full-service grocery store.

Mayor Tiffany O’Donnell said she was treating the closure like an “emergency.”

“Hy-Vee’s decision to close their First Avenue store is incredibly disappointing. Generations of customers have relied on this store for their basic needs.

It is unfortunate the company is leaving at a time when the nearby neighborhoods are seeing significant improvements and public investment,” O’Donnell said according to ABC affiliate KCRG.

“We anticipate this momentum will continue when combined with efforts like the upcoming First Avenue Micro Area Action Plan community planning process.

We know that access to fresh, affordable food is crucial for our community’s wellbeing and we will work with local agencies to meet the needs of those impacted most by this closure.”

The company said the closing comes after the store didn’t meet its financial and sales goals.

“Unfortunately, these locations have not consistently met our financial expectations and sales goals over the past several years,” spokesperson Tina Potthoff told the Corridor Business Journal.

“All employees will be offered a position at another Hy-Vee store in the area, at the same rate of pay, and will retain their existing benefits.”

The First Avenue NE location plans to close on June 23.

It was built in the neighborhood after the city gave the grocer 20-year tax increment financing in 2001 as an incentive, according to KCRG.

Now customers will have to travel out of their way to get to a full-service grocery store, reports The-Sun.

“The closest is now 2 miles away, or a 6 to 7-minute drive.

This closure will likely create a food desert in the Cedar Rapids neighborhood.

The Hy-Vee location is also in a high-poverty area, leaving people who walk to the store now have little access to fresh groceries,” reports the outlet.

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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois

Other Economy News Today

An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.

TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.

This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.

The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.

Today, Fridays will welcome in famished diners at its location in Brick for the final time.

“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.

“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”

Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.

“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.

“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.

Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.

The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.

“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.

Also Read: Retirees Will Now Receive More Money For Social Security

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