Hy-Vee, Inc. announced on Wednesday that it is delaying plans to construct a new distribution center in Austin.

The construction that was projected to start in 2019 will be delayed by several years as Hy-Vee re-evaluates the need for a third distribution center, according to Tina Potthoff, vice president of communications for Hy-Vee, Inc.

“After evaluating recent changes in consumer shopping and lifestyle behaviors, we are adjusting our growth strategy to best meet our customers’ changing wants and needs,” Potthoff said in a news release. “Over the next several years, we will continue to expand our offerings across the Midwest by constructing new smaller format stores. In addition, we are also looking at developing larger store formats, larger than our current 90,000-square-foot stores, which would complement our smaller format locations.”

These smaller stores, called Hy-Vee Fast and Fresh, are about 10,000 square feet in size. The company is planning to build locations in Altoona, Iowa, and Des Moines.

“We anticipate building more of these stores across our eight-state region over the next few years,” Potthoff said.

Hy-Vee already has several major construction projects under way to meet the needs of their new store formats, she said.

City officials noted the decision does not mean the project is scuttled.

“We are significantly disappointed to learn of the delay of the potential Hy-Vee distribution center in Austin,” said City Administrator Craig Clark. “We understand in talking with Hy-Vee representatives that this project will continue to move forward with the environmental review process which has begun, and we continue to be excited about the possibility of a project that would provide many positive benefits to the entire community of Austin.” 

Concerns from some citizens who expressed their disdain for the project at recent City Council meetings did not play a role in Hy-Vee’s decision, he said.

“We were assured that the premature concerns raised by a few individuals were not a contributing factor to their adjusted start date,” Clark said. “The city of Austin stands ready to advance the potential project as the environmental review is completed and Hy-Vee aligns their capital improvement projects.”

John Garry, director of the Development Corporation of Austin, said the DCA is still optimistic.

“While we are certainly disappointed to learn of the delay, we are encouraged that Hy-Vee plans to continue with the evaluation for the possible distribution center in Austin,” he said. “I think their interest in Austin shows just how attractive a community we are for business and industry. The Development Corporation of Austin and it’s many business members are very excited about the enormous, positive economic impact a project of this magnitude would have on Austin. These would be quality jobs with a highly reputable company. It is a very good fit for Austin.”