Hy-Vee, Inc. Selects IBM Self Checkout, First U.S. Retailer to Install IBM’s Innovative Next Generation Systems

RALEIGH, NC - 27 Apr 2006: IBM announced today that Hy-Vee, Inc. is the first U.S. retailer to deploy the next generation of IBM self checkout systems, which feature a new ergonomic hardware design to help make it even easier and faster for shoppers to check themselves out. Hy-Vee is one of the top 20 supermarket chains in the U.S., with 224 stores in seven Midwestern states.

Hy-Vee, which recently completed a successful pilot with IBM’s current self checkout system, installed IBM’s first next-generation conveyor-based models in their store in West Des Moines, IA this month and opened the store to customers this week. They plan to install these new models in five more stores in 2006. Hy-Vee selected the IBM self checkout solution after a comprehensive evaluation of self checkout alternatives.

“We’re quite excited about IBM’s new hardware design, with its intuitive flow and above-counter placement of devices, making it even easier for our shoppers to use self checkout,” said Don Miller, Assistant Vice President, Equipment Purchasing at Hy-Vee. “Customer service is paramount for us, and we’ve had very high acceptance of self checkout. We expect that more people will try it when they see the layout and design of the new IBM systems.” Miller also said Hy-Vee valued IBM’s belted conveyor solution, which maximizes utilization with its ability to handle both express and full-size orders easily. “Now we’re able to offer the self checkout option to all our customers, every time they shop. IBM’s belted design makes it much easier for our shoppers to process both large and small orders.”

“Retailers and consumers have both readily accepted self checkout to enhance the shopping experience,” said Christopher Wong, director of marketing and strategy for IBM Retail Store Solutions. “Our extensive research found that both shoppers and retailers wanted an innovative new design that helps make self checkout even faster and easier to use and more flexible to install. Leading retailers like Hy-Vee are looking to leverage exciting new technologies like self-checkout to help transform the shopping experience and streamline store operations.”

About IBM
IBM, the world’s largest information technology company, is a leader in providing the retail industry with a full range of e-business solutions, including: point-of-sale systems, automated self checkout systems, other hardware and software technology, consulting focused on business transformation, IT strategy and planning, store operations improvement, and supply chain optimization, and with services, such as outsourcing, managed operations, systems integration, and application development and design. For more information on IBM Retail Solutions, please visit www.ibm.com/industries/retail/store.

About Hy-Vee, Inc.
Hy-Vee, Inc. is an employee-owned corporation operating 224 stores in seven Midwestern states. In fiscal year 2005, the company recorded total sales in excess of $4.9 billion, ranking it among the top 20 supermarket chains and the top 35 private companies in the United States.

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