The grocery industry in Iowa experienced a dynamic period from 2024 through mid-2025, marked by strategic expansions, significant remodels and a notable few closures, reflecting both economic pressures and a continued focus on serving communities.
While the state’s overall financial position remains strong, grocers are navigating evolving consumer habits and intense competition.
Iowa-based Fareway Stores Inc. has continued its strategic growth. Fareway operates 141 stores in a seven-state region, with more than 13,000 employees.
The retailer hosted a ribbon cutting and grand opening ceremony July 8 for a new store at 930 Commercial St. in Lisbon, Iowa. 
Fareway acquired the 18,000-square-foot store from Brother’s Market in March and has since completed a full renovation of the property. The store officially opened for business July 9.
In December, the company completed the move to its new corporate headquarters in Johnston, Iowa, a suburb west of Des Moines that’s about a 30-minute drive from its former base in Boone, north of the city.
However, the Boone complex continues to be home to more than 100 staff members on the wholesale/warehouse side of the operation.
The grocer held a ribbon cutting and grand-opening ceremony Nov. 5 for a new 10,800-square-foot store at 1550 Broad St. in Story City, Iowa, that fills the void left after the town’s previous grocery store closed in August 2021.
Also in November, Fareway hosted a ribbon cutting and grand reopening ceremony for a 21,000-square-foot store at 2330 175th St. in Spirit Lake that replaces the grocer’s previous location.
In addition, Fareway broke ground on a new 21,000-square-foot store in Granger on Sept. 30, 2024, with anticipated construction completion this year.
Fareway held a ribbon cutting ceremony July 17, 2024, for a new store at Highway 18 and Division Street in Hull, Iowa. The company first shared plans on the new store in April 2023, and broke ground in September of that year.
[RELATED: Fareway Debuts New Location In Denver, IA]
Other retailers
In Cedar Rapids, the S. International Market, owned by Sui Thawng and Eli Tha, held its grand opening June 12 in the former Jeff Jones Furniture building. They also operate a store in Waterloo, according to a report from Homegrown Iowan.
Looking ahead, Cedar Rapids is set to welcome a new community grocery store, “The Market Basket,” as part of the NewBo City Market’s $5.5 million expansion project, according to a report from KHAK News.
Iowa City-based non-profit Field to Family will operate the store, focusing on sourcing local produce from more than 70 producers within 100 miles of Johnson County. Groundbreaking for the project is scheduled for September, with a tentative opening by late spring or early summer 2026.
And Aldi plans a national expansion that includes the Midwest, with more than 225 new stores this year, part of its largest single year growth yet.
Remodels, renovations
Industry trends suggest a continuous investment in store upgrades to enhance the customer experience.
Hy-Vee Inc. announced in January plans to transition all its in-store restaurants to Hy-Vee Market Grille locations, with new menus for breakfast, lunch and dinner. All of its 79 in-store Wahlburgers locations were folded into its in-house Market Grille brand as the company shifts away from third-party branding.
The retailer also announced in May that it would close most in-store bars and convert Market Grille full service dining to counter service formats, focusing on streamlined, family friendly operations, according to a report from Ottumwa Radio.
Following the phased transition, Hy-Vee will have 221 Market Grille and Market Grille Express locations across the Midwest.
Store closures
Several store closures were announced over the past year, particularly impacting rural and underserved communities.
In May 2024, Hy-Vee announced the permanent closure of three stores in low-income neighborhoods in Cedar Rapids (First Avenue NE), Waterloo (Logan Avenue) and Davenport (Rockingham Road). The closures took effect on June 23, 2024.
Hy-Vee stated the stores had “not consistently met our financial expectations and sales goals over the past several years” and offered free grocery and pharmacy delivery, along with shuttle services, to affected customers, according to Iowa Capital Dispatch.
More recently, the community-owned Dayton Community Grocery in Dayton, Iowa, announced in June that it would be closing. Despite efforts to cut costs, apply for grants and limit hours, the store was unable to compete with larger retailers and generate the necessary income to continue operations, according to Messenger News. The board stated its decision to close debt-free, acknowledging the community’s desire for the store to remain open.
Another central Iowa town, Stratford, is also losing its only grocery store. The Stratford Food Center announced its closure due to rising prices, broken equipment and competitive challenges, according to Sioux County Radio.
In Cedar Rapids, the Cultivate Hope Corner Store, a nonprofit serving a northwest neighborhood with limited grocery options, reported persistent losses in July and warned it may not survive without additional funding or increased customer volume, according to KCRG News.
In Manson, the Hometown Grocery store, opened in late 2020 as a nonprofit after a prior grocer closed, faces closure by late summer or early fall if sales don’t improve, according to messengernews.net.