Major retailer suspends rebate program after its vice president broke silence over fraud and abuse

ONE of the largest discount grocery retailers has shut down its employee discount program after fraud and abuse by its employees was exposed.

Hy-Vee workers will no longer enjoy 10 to 40 percent discounts when shopping at locations, the company’s vice president announced last week.

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Hy-Vee, whose more than 280 stores are primarily located in the southern and midwestern United States, launched its employee discount program in 2019.

However, Vice President Georgia Van Gundy told employees the company needed more “checks and balances” to keep the discount from being abused.

“Unfortunately, as we have been monitoring the transactions, because we monitor them closely, and based on feedback from our employees, we have noticed some very worrying transactions,” Van Gundy said in an email to employees.

The VP said they discovered an employee’s Fuel Saver account was being used in five states in the space of an hour.

Another employee has made discount purchases that exceed his paycheck, and they suspect the worker is “reselling the goods for a profit for himself.”

Meanwhile, Van Gundy said each employee’s rebates would be split across multiple households across the country.

Hy-Vee employs more than 93,000 people in eight states, according to its website.

“Actions like this are simply unacceptable,” Van Gundy said, adding that affected employees could face disciplinary action.

According to a 2020 Facebook post, Hy-Vee employees saved more than $12 million in the first six months the discount was offered.

Hy-Vee’s discount program is being revised and is expected to be reintroduced by mid-April or summer.