For the first few years, Hyde and Vredenburg continued to operate their separate stores and managed some with other partners, while also running stores together. By 1934, the general stores operated under names such as The Supply Stores, Hyde Service Store, and Vredenburg Grocery began to focus exclusively on groceries. This strategic shift helped streamline operations and cater to the growing demand for specialized grocery stores.
In 1938, the original partnership was dissolved when Hyde & Vredenburg was incorporated. This new corporate structure included 15 stores across Iowa and Missouri, owned by 16 store managers who traded their local store ownership for corporate stock. This move laid the foundation for Hy-Vee’s unique heritage as an employee-owned organization. The company headquartered in Lamoni, Iowa, appointed Dwight Vredenburg, son of co-founder David Vredenburg, as its president. That year, the company's annual sales were about $1.5 million, reflecting its growing presence in the region.
By 1940, Hy-Vee was already pioneering changes in the grocery industry. When the company introduced grocery carts, or "baskets on wheels," at its Centerville, Iowa store, customers were initially reluctant. The carts reminded women of baby buggies, and men felt they were "for sissies whose arms weren't strong enough to carry a few groceries." However, offering free candy bars in each new cart quickly persuaded customers to adopt the new convenience, showcasing Hy-Vee’s innovative approach to customer service.
Hy-Vee continued to expand significantly in the 1970s. The company opened new stores, built additional warehouse space, and embraced new technology. In 1971, a 78,000-square-foot addition increased the total capacity of the Chariton warehouse to 430,000 square feet. In 1976, Hy-Vee constructed a secondary warehouse and office complex in Cherokee, Iowa. The company also ventured into new markets, opening stores in South Dakota in 1975, Nebraska in 1977, and Illinois in 1979. Notable milestones included the opening of the 100th store in Keokuk, Iowa, the first in the chain to use electronic cash registers, and surpassing the $500 million annual sales mark in 1978.
Today, Hy-Vee stands as a testament to the vision and hard work of its founders, with a strong commitment to employee ownership and customer satisfaction. The company’s growth from a small general store in Iowa to a major player in the grocery industry highlights its ability to adapt and innovate, ensuring its success for generations to come.
Hy-Vee: From Humble Beginnings to Industry Leader
