Hy-Vee to open Oakdale store

A Hy-Vee grocery store will be built at the northwest corner of the 694 and 10th Street N. intersection next to the nearly completed Waters of Oakdale senior housing complex. A completion date for the grocery store has not yet been announced. Hy-Vee representatives will submit building plans for city approval next month. (Joshua Nielsen / Review)

Grocer plans to expand its enterprise throughout the Twin Cities

An out-of-state retailer plans to give locally established grocery store chains a run for their money.

Iowa-based Hy-Vee announced last week that it intends to open a supermarket in Oakdale and will be opening several more stores across the metro in the coming years.

The new store will be built at the site of the former Oakdale Outlet Mall, near the northwest corner of the Interstate 694 and Tenth Street North intersection.

Oakdale owned the land and city officials have been in negotiations with Hy-Vee executives for several months, but have remained quiet about a possible deal until a purchase agreement for $16 million was signed on Tuesday, July 29.

“This is huge for us and I really think it underscores the work done at the mall redevelopment site,” city administrator Craig Waldron said. “It all worked according to plan, and we couldn’t be more excited.”

Mayor Carmen Sarrack echoed Waldron’s remarks on redevelopment efforts and noted that Hy-Vee “will be a wonderful addition to our city for years to come.”

Waldron said redevelopment plans for the parcel formerly occupied by the 180,000-square-foot shopping center are nearly complete. Construction at the Waters of Oakdale -- a four-story, 92-unit senior housing complex also located on the old mall site -- will wrap up in the next couple of months. The Hy-Vee store, Waldron said, would occupy most of the remaining acreage.

Hy-Vee plans to submit initial building plans to the city next month, but said in a written statement that it could be several months before construction would begin and a tentative grand opening for the store has not been set. 

According to a press release issued by Hy-Vee last week, the Oakdale store will create about 450 jobs for local residents and will feature amenities like a full-service restaurant, pharmacy, specialty cheeses and artisan breads, in-store chefs and cooking demonstration stations, a made-to-order sushi bar, a large HealthMarket, a bulk foods section, and even postal and dry cleaning services.

“The city of Oakdale has embraced us, and we look forward to demonstrating the quality customer service, culinary expertise and health and wellness features that our stores offer,” Hy-Vee executive vice president of operations Jay Marshall said in a written statement. “When we enter a community, we want to become part of that community. We’re excited about this new store allowing us the opportunity to build those relationships while serving residents’ grocery needs.”

While large grocery retailers like Roundy’s -- which sold or closed the last of its 27 metro stores last month -- are pulling out of the competitive Twin Cities grocery market, Hy-Vee sees major opportunities for expansion into the region.

Hy-Vee owns and operates 237 retail stores in eight Midwestern states and has annual sales upwards of $8 billion. The employee-owned company is new to the metro, but has 17 stores in southern Minnesota; the closest location is in Faribault.

The company has not announced how many stores it plans to open in the Twin Cities, but said it would “add several stores per year over the next several years,” in a written statement.

The news of the Oakdale store follows a previous announcement the company made last winter about opening a Hy-Vee store in New Hope. That store is expected to be built on land once occupied by a K-mart store and is still in the development stages.

Joshua Nielsen can be reached at jnielsen@lillienews.com or 651-748-7822.


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