CEDAR RAPIDS, Iowa (KCRG) – Officials with Hy-Vee have announced the company will close two stores in eastern Iowa next month. The store on First Avenue NE store in Cedar Rapids will close on June 23rd, opening up a large area of the city without easy access to a grocery store.

Hy-Vee managers told KCRG-TV9 the chain is closing two locations, the Cedar Rapids one and a Waterloo Hy-Vee store on Logan Avenue. Both stores are in areas listed as “High Poverty” according to U.S. Census data. In a statement, spokesperson Tina Pothoff said the two locations have not consistently the company’s financial expectations and sales goals over the past several years. She added, that the employees at those stores will be offered a position at another Hy-Vee store in the area, at the same rate of pay and will retain their existing benefits.

Hy-Vee pointed out that despite the closure, it offers its Aisles Online grocery delivery service to the area. Pothoff also said Hy-Vee plans to open up e-WIC payments to allow recipients of the Women, Infant and Children food assistance to buy groceries online.

The City of Cedar Rapids had given Hy-Vee incentives to build the First Avenue store in 2001 and keep a grocery store in the area, including a 20-year tax increment financing. The Gazette reported the head of Hy-Vee at the time made it clear that the store was not financially viable without the city’s tax incentives.

Cedar Rapids Mayor Tiffany O’Donnel said in a statement regarding the closure:

“Hy-Vee’s decision to close their First Avenue store is incredibly disappointing. Generations of customers have relied on this store for their basic needs. It is unfortunate the company is leaving at a time when the nearby neighborhoods are seeing significant improvements and public investment. We anticipate this momentum will continue when combined with efforts like the upcoming First Avenue Micro Area Action Plan community planning process. We know that access to fresh, affordable food is crucial for our community’s wellbeing and we will work with local agencies to meet the needs of those impacted most by this closure.”