Hy-Vee Planning Minnesota Distribution Center

Midwestern grocery chain Hy-Vee Inc. is planning to build a distribution center in southern Minnesota, its first such facility outside its home state of Iowa, as it continues to expand its store count in the Twin Cities market.

With construction expected to begin in 2019, the 1-million-square foot distribution center would be located along Interstate Highway 90 on the western side of Austin, the headquarters city of Hormel Foods, the Des Moines Register reported.

“The site in Austin is being considered for the project due to its centralized location in the company’s eight-state territory, interstate access as well as the community’s ample workforce,” Hy-Vee told the Register.

With 24 stores in Minnesota, Hy-Vee has continued to grow its presence in the Minneapolis metro area since entering the Twin Cities market in 2015, where it now operates seven supermarkets, with more on the way. Its location in Savage, Minn., will be featured in an upcoming issue of Progressive Grocer, which has selected Hy-Vee as its 2017 Retailer of the Year.

Hy-Vee currently operates two distribution centers in Iowa, plus a food production center through its subsidiary, Perishable Distributors of Iowa.