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Hy-Vee pulls back on Austin distribution center

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Hy-Vee Inc. said today it is delaying its timeline on the potential construction of a new distribution center in Austin, Minn., as it adjusts to changing market demands. “Over the next several years, we will continue to expand our offerings across the Midwest by constructing new smaller format stores. Just recently, we announced a new store concept, called Hy-Vee Fast & Fresh, that will soon be constructed in Altoona and Des Moines,” the company said in a statement. Hy-Vee owns and operates distribution centers in Cherokee and Chariton. “We will now evaluate the need for a third distribution center in Austin within the next several years,” according to the statement. Preliminary plans called for the Austin project to break ground in 2019. The company recently unveiled plans for a 240,000-square-foot production center in Ankeny that will serve as a commissary and central bakery as the company provides more fresh prepared options and meal kits. In Chariton, construction is underway on a 48,000-square-foot Short Cuts production facility that will produce fresh-cut, retail-ready fruits and vegetables beginning in January. Hy-Vee is also planning to open three new fulfillment centers in Kansas City, the Twin Cities and Omaha in the upcoming years to meet the demands of online ordering services. The facilities are in addition to and existing fulfillment center in Des Moines. In addition to the small-footprint, 10,000-square-foot stores, Hy-Vee is evaluating the development of footprints that would exceed its current 90,000-square-foot large store format.