Phoenix, Arizona-based Sprouts Farmers Market (NASDAQ:SFM), which entered the Atlanta market in 2014, announced earlier this week it plans to close a total of 11 stores by mid-year. The company did not reveal the stores slated for closure, only saying that they would include those in California, Florida, Georgia, Texas and Washington. ToNeTo Atlanta has confirmed with local sources that the Atlanta area Sprouts slated for closure is located at 2220 Peachtree Industrial Boulevard, Suite 200, in Duluth.
According to an employee at the Duluth store, a "closing sale" has yet to start, but the store is expected to close for good by the end of April. The closure, which sources indicate is due to disappointing sales, is likely also related to the grocer's efforts to "right size" their store fleet and operate smaller stores. The Duluth store and its 28,600 square feet are on the upper end of the size of stores that the company operates locally.
During an earnings call last week, CEO Jack Sinclair and CFO Chip Molloy explained that the closing stores were opened by the previous leadership team and are approximately 30% larger than the current prototype and are generating negative cash flow.
The company does plan to open new stores but they will be smaller. “We are expanding with our new 23,000-square-foot store and every store opened this year will be in our new format,” Sinclair said during a March 2 call with investors and analysts. “We’re excited about our robust pipeline of more than 80 approved stores and nearly 60 executed leases. We have already opened four new stores in this first quarter with a plan to open at least 30 stores this year, and we are on track to reach our 10%-unit growth starting in 2024."
Sprouts in late 2018 closed their store in Dunwoody which was in turn taken over by Lidl which suffered a similar and faster fate, having closed their store this past February. Lidl might have interest in the soon to close Duluth store if not for the fact that they opened a freestanding store basically across the street June 23, 2021.
Including the Duluth store, Sprouts operates eighteen stores across Georgia including sixteen in greater metro Atlanta. Metro Atlanta stores include those in Snellville, Tucker, Piedmont Heights, Johns Creek, Sandy Springs, Peachtree Corners and East Cobb while further out stores include those in Cumming, Woodstock, Peachtree City and Augusta, among others. The grocery's most recent Atlanta area stores debuted in 2021 in Smyrna and Buford and are about 19,000 and 23,000 square feet respectively.
Are you surprised that Sprouts is closing in Duluth? Where do you do most of your grocery shopping? What would you like to see open in place of Sprouts in Duluth?
Please share your thoughts below.
15 comments:
Folks in the suburban Atlanta suburbs don't support grocery stores other than Kroger, Publix, and Whole Foods. Even Trader Joes has a hard go at it OTP.
They really should open in the old Greenwise in East Cobb. That would fit their new smaller store footprint.
I hope more Sprout's locations don't close. I quite like the store.
Every time I go to the Trader Joes in Sandy Springs or Peachtree Corners or East Cobb, they're always packed. There are some liberals out in the suburbs who'll pay more for good food
@Anon 11:03. There are also some conservatives in the suburbs who will pay more for good food.
@3/8/23 4:17pm - The Trader Joes in east cobb and Peachtree industrial are always busy. In the mornings, people are outside waiting. Products move in the east Cobb store. Talking to the TJ Manager and the see strong improvements. Kroger sucks.
What does being liberal or conservative have to do with buying groceries ANYWHERE?? People are so dumb geez.
People are so desperate to make anything political.
Some of the prices at TJ are less than what you find at Publix.
Publix prices are equivalent to Whole Foods in many cases. Publix has been the most judicious about raising prices and I’ve shopped and compared like an educated person.
Publix has gone downhill in general. It's not bad, but nothing like it used to be in terms of service or general quality. Their meat, bakery and deli are all a shell of what they once were, same with their store brand products across the board. They are more worried about opening more and more stores.
It's not surprising to me. The population in that Ga area are heavy populated with immigrants, foreigners, different cultures and food. They shop in their own community stores and markets. I shop at Sprouts and I love it! The prices are competitive, the meats taste healthier and yes the fruits are sweeter just as they are advertised in the store. I'm happy none of the stores closest to the city are closing. Sprouts super market survives in heavy populated American kitchens that like to cook healthy American meals.
This is unfortunate only because I live in the area and things have been closing, like the schlotsky's you mentioned and also a menchies frozen yogurt in that area struggled to reopen after the pandemic. I think it's probably still closed. I'm excited about cava and I hope it doesn't affect it too much. I also hope the new lidl isn't struggling. I could only hope whole foods opens in the slot. The nearest one is in Johns Creek. There is a Fresh Market not far up Peachtree industrial, so there is a market for that type of store.
Yeah, it's true that a lot of immigrants live in this area. I'm not sure what would survive in that slot. Maybe they can open an H-Mart there, either way I hope it's a grocery store and not some type of clothing or bargain store
What is a healthy American meal? This is a country of immigrants, all of our cuisine is a mix of cultures. And the #1 thing I buy at Sprouts is sushi.
We used to get all of our produce there until they went way up in prices. Now we find really good produce and prices in the Asian and Mexican markets.
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