Business

Hy-Vee to buy former Shopkos in Eastern Iowa

A shopper walks out of a former location of Shopko, 3111 16th Ave. SW in Cedar Rapids on Wednesday, Feb. 7, 2001.
A shopper walks out of a former location of Shopko, 3111 16th Ave. SW in Cedar Rapids on Wednesday, Feb. 7, 2001.
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At least six former Shopko locations across Iowa in the near future will reopen as Hy-Vee Dollar Fresh stores.

Hy-Vee on Monday announced purchase agreements for Shopko buildings in Cresco, Dyersville, Hampton, Oelwein, Vinton and Waukon. Over the coming weeks, workers will start work renovating several of those locations, aiming to reopen them by late summer.

Terms of the acquisition were not disclosed.

As a brand, Hy-Vee’s Dollar Fresh stores focus on affordable food offerings in smaller communities.

“As we continue to innovate, we’re taking a look at the needs of our rural communities,” said Randy Edeker, Hy-Vee’s CEO, president and board chairman.

Shopko, a Wisconsin-based general merchandise chain, filed for Chapter 11 bankruptcy in January 2019, citing “excess debt” and a “challenging retail environment.” Two months later, the company announced it would liquidate its remaining stores after executives were unsuccessful in finding a buyer.

The new Dollar Fresh stores will double the number of such locations under Hy-Vee’s umbrella.

The West Des Moines grocer currently operates venues in Centerville, Creston, Emmetsburg, Osceola and Toledo, Iowa, as well as in West Point, Nebraska — as part of the more than 265 current Hy-Vee stores across eight Midwestern states.

Comments: (319) 398-8366; thomas.friestad@thegazette.com

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