Hy-Vee's new B2B advertising subsidiary is debuting with video screens that will broadcast ads in most aisles of some large Des Moines Subway stores.
Hy-Vee launched a new business, RedMedia, in September that it said will allow other companies to reach customers through various Hy-Vee platforms, including advertising in Hy-Vee stores. Initially, most of the ads that appeared on screens this week were internal promotions of his Hy-Vee's services and products, but an ad urging consumers to visit a pharmacist to obtain a vaccine included drug company Pfizer's The logo was posted.
Hy-Vee did not say how many stores are installing the new screens. A Des Moines Register reporter saw them at the West Des Moines store at 1725 Jordan Creek Parkway and 1700 Valley West Drive, and at the Waukee store at 1005 Hickman Road.
The West Des Moines-based chain has long tested new products and ideas in its central Iowa stores before rolling them out to the chain's more than 240 stores in eight states.
Cincinnati-based supermarket giant Kroger has created a similar advertising and marketing division as the grocer looks to leverage the data it collects about its customers to maximize the appeal of shoppers in its stores. The grocery industry analyst praises RedMedia as an important new way for Hy-Vee to reach consumers and generate new revenue.
Hy-Vee spokeswoman Tina Potthoff said Hy-Vee has always used its stores to “promote transactions, value, and new products and services.” However, until now, they were delivered to customers via paper tags or printed signs.
“Customers will now see us start leveraging digital technology through our in-store screens to tell the story behind our products, provide details on savings and deals, and promote new initiatives. That's going to happen,” Potthoff said.
University of Iowa graduate leads new venture
Hy-Vee announced in late March that it had hired Jessica Hendricks as chief marketing officer and that she would lead RedMedia. The University of Iowa graduate previously served as her CEO of Saatchi & Saatchi X, the business-to-business marketing division of French advertising firm Publicis Groupe.
Former Hy-Vee chief marketing officer Anna Stoermer will become the chain's chief merchandising officer, according to a news release.
Some stores, including the Des Moines metro's largest Grimes store, have digital price tags on Hy-Vee shelves to quickly update prices. New screens in stores will allow advertising to be updated in a similar way, Potthoff said.
“This screen also allows messages to be market-specific and updated in a timely manner,” she said.
Philip Joens covers retail, real estate and RAGBRAI for the Des Moines Register. Contact him at 515-284-8184, pjoens@registermedia.com or @Philip_Joens on Twitter.
