Sioux Falls Hy-Vee to close, will be repurposed as pharmacy fulfillment center

A Hy-Vee grocery store in western Sioux Falls will close in early January and be repurposed for another use, according to a news release from the company on Wednesday.

The Kiwanis Avenue Hy-Vee store at 2700 W. 10th St. will close at 6 p.m. on Saturday, Jan. 1, 2022. The site will be renovated to become a pharmacy fulfillment center for Sioux Falls area Hy-Vees and a centralized bakery for Sioux Falls stores, said Tina Potthoff, senior vice president of communications for Hy-Vee.

The change is due to increased growth and demand for pharmacy and baking service in Sioux Falls, Potthoff added.

"We need the additional space to keep up with demand," Potthoff said in an emailed statement. "We want sales to reflect the quality of value we’re bringing to the store and the customer service we’re providing. Unfortunately, this location did not consistently meet our financial expectations.”

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Sioux Falls has seven Hy-Vee stores, including the Kiwanis location. The Kiwanis store is the only major grocery store besides Walmart on 60th Street North for Sioux Falls residents living north of 12th Street and west of Minnesota Avenue.

Potthoff did acknowledge that closing the Kiwanis location would widen food deserts in the northwestern part of Sioux Falls. She said that Aisles Online accepts EBT payments and said that Hy-Vee will "look at ways to further address" the issue.

Hy-Vee Aisles Online pick-up services at the store will end on Dec. 6; however, Aisles Online delivery options for customers at the Kiwanis location will still be available and fulfilled by nearby Hy-Vee locations.

Pharmacy customers will receive a letter informing them that their prescriptions will be transferred to a nearby Hy-Vee Pharmacy, or a pharmacy of their choosing.

All employees affected will be offered positions with the same pay and benefits at other stores across the company, the release said. There are 132 employees at the Kiwanis store, 37 full-time and 95 part-time. Customers will be notified throughout the store of the closure.

The Kiwanis location is one of four locations that will be closed or repurposed in January, including:

  • The Englewood Hy-Vee store, located at 207 NE Englewood Road in Kansas City, Missouri, will close at 6 p.m. on Saturday, Jan. 1, 2022. The location will be transitioned to a Wall to Wall Wine and Spirits location in the coming months. The current Hy-Vee Fast & Fresh convenience store located at this site will remain open.

  • The John Deere Road Hy-Vee, located at 750 42nd Avenue Drive in Moline, Illinois, will close permanently at 6 p.m. on Saturday, Jan. 1, 2022.

  • The Collins Road Hy-Vee, located at 279 Collins Road NE in Cedar Rapids, Iowa, will close permanently at 6 p.m. on Sunday, Jan. 9, 2022.

This article originally appeared on Sioux Falls Argus Leader: Hy-Vee closing Sioux Falls location on Kiwanis Avenue, to repurpose