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WEST DES MOINES, Iowa – Hy-Vee is deepening its digital retail footprint via a new partnership with Instacart, the companies said Tuesday.
The retailer's in-house retail media network, Hy-Vee RedMedia, will integrate Instacart’s Carrot Ads platform to enhance the advertising capabilities available on Hy-Vee.com.
The move will allow the Midwestern grocer to offer more personalized and targeted shopping experiences while opening the door to a wider pool of advertisers. Instacart’s Carrot Ads technology connects advertisers with more than 220 retail banners and brings demand from over 7,000 consumer packaged goods (CPG) brands.
By tapping into Carrot Ads, Hy-Vee RedMedia will expand its digital ad inventory and enable CPG partners to extend their Instacart campaigns directly onto Hy-Vee’s e-commerce platform. This is expected to create new revenue streams for Hy-Vee while improving product discovery and personalization for online shoppers.
“Retail media is a critical driver of the grocery ecosystem, and since launching Hy-Vee RedMedia, we've been committed to strengthening our capabilities in this area,” said Kathryn Mazza, president of Hy-Vee RedMedia and chief marketing officer at Hy-Vee. “Our partnership with Instacart through their Carrot Ads solution exemplifies how we're continuing to enhance our offerings by expanding the value we bring to advertisers.”
Hy-Vee first teamed up with Instacart in 2018 to launch same-day delivery. That relationship evolved in 2023 with the addition of Instacart’s Fulfillment Services, integrating delivery capabilities directly into Hy-Vee’s owned digital platforms. In 2024, the partnership expanded again to include pickup services.
Alice Luong, senior director of e-commerce and retail media at Instacart, highlighted the significance of the move for both advertisers and consumers: “We're creating an even more attractive offering for advertisers to easily stay connected with customers wherever they choose to shop among Instacart's growing network of retail sites powered by Carrot Ads, which will now include one of the Midwest's largest grocers. This will also simultaneously improve the customer shopping experience through ad tech capabilities that drive ad personalization and make product discovery easier.”
Carrot Ads is part of Instacart’s broader retail technology suite, which aims to help grocers modernize their digital operations while creating scalable monetization opportunities. The integration with Hy-Vee is expected to go live later this year.
With more than 570 business units across nine Midwestern states, Hy-Vee continues to position itself as a leader in digital grocery retail, leveraging technology partnerships to stay competitive and consumer-focused in a rapidly evolving market.
