The Des Moines Register reports that “following what it says was a surge in misuse, Hy-Vee has shut down its employee discount program so it can be retooled.”
In a video last week, Hy-Vee EVP Georgia Van Gundy told employees “that the company was making ‘necessary changes’ to the discount program after uncovering increased ‘fraud and abuse’ by employees.”
These abuses, Van Gundy said, included one employee’s Fuel Saver account being “used in five states in one hour. Another employee made discount purchases that exceeded their paycheck, ‘and we’re fairly certain that employee is reselling the merchandise at a profit for themselves.’ In addition, she said, some individual employees’ discounts were being shared among several households in different states.”
Some context from the Register:
“The reworking of the employee discount program is the latest corporate change in a tumultuous period for Hy-Vee.
“Last year, as Hy-Vee laid off more than 400 employees in marketing, communications and technology, CEO Randy Edeker said in a leaked internal video that the company’s front office ‘does nothing.’
“He bemoaned that some of those whose jobs were being eliminated had declined reassignment to store positions, saying ‘some people just simply see it being beneath them to work at the retail stores. I think it’s crazy, and I think that it’s offensive.’
“The company in July announced Edeker was stepping down as CEO, while remaining board chair, and announced Aaron Wiese, then a vice chairman, would succeed him.
“Less than a month later, Jeremy Gosch, the company’s then-co-chief operating officer and chief marketing officer, was named co-CEO.
“The company said at the time that the announcements had been separated to give Wiese and Gosch ‘their own moment of recognition.’ But in December, it announced Gosch would be the sole CEO, while Wiese was named one of two company presidents under him.”
KC’s View:
I remember the days when Hy-Vee was a bastion of stability … Ric Jurgens was the CEO … and the company featured a decentralized business model, with store managers empowered with an enormous amount of autonomy, that seemed to foster a high level of collegiality.
Perhaps it is a changed reality that comes with growth.
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