Sprouts Farmers Market closing 11 stores, focusing on smaller concept
Sprouts Market CEO Jack Sinclair said the closing stores were larger than Sprouts’ desired size, and some of them were in the “wrong” locations. Sinclair said the closures were being done in a “big chunk” as part of a “one and done” strategy. The move is not too surprising as smaller format stores continue to be popular across retail sectors, including in grocery.
“We would have acted sooner on these stores had it not been for the pandemic,” Sinclair told investors of the closing stores. “We didn’t think it was appropriate to shut grocery stores in the middle of a pandemic in terms of giving access to healthy foods.”
In total, Sinclair said Sprouts Market has about 80 new stores in the pipeline, 60 of which have signed lease agreements. Sprouts Market is on track to meet its 10% unit growth goal in 2024, he said.
Also in the pipeline for Sprouts Markets’ is a greater focus on Sprouts private-label brands, which have become more important to grocers as consumers search for value, more seasonal programs and redesigned packaging. Sinclair said Sprouts Markets would also double down on its offerings of convenience meals following success in the category last year by introducing more “chef-driven” creations, more plant-based options and more family meals.