Major retailer suspends discount program after its vice president breaks silence on fraud and abuse
ONE of the largest discount grocery retailers has suspended its employee discount program after uncovering fraud and abuse by its workers.
Hy-Vee workers will no longer enjoy a 10 to 40 percent discount when shopping at the locations, the company's vice president announced last week.
Hy-Vee, whose more than 280 stores are primarily located in the South and Midwest U.S., launched its discount program for employees in 2019.
However, VP Georgia Van Gundy informed employees that the company needs more "checks and balances" so the discount can't be abused.
"Unfortunately, as we've been monitoring the transactions, because we do monitor them closely, and based on feedback from our employees, we've noticed some very concerning transactions," Van Gundy said in an email to employees.
The VP said they discovered an employee's Fuel Saver account was used in five states in one hour.
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The company suspects another employee of using their benefits to resell bought goods after discovering their purchases exceeded their paycheck.
Meanwhile, Van Gundy said the individual employees' discounts were being shared among several households across the nation.
Hy-Vee employs more than 93,000 people across eight states, per their website.
"Actions like this are just unacceptable," Van Gundy said, adding that employees involved could face discipline.
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According to a 2020 Facebook post, Hy-Vee employees saved more than $12million during the first six months the discount was offered.
Hy-Vee's discount program will be revamped, with plans to relaunch it by mid-April or summer.
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