Wednesday, March 8, 2023

[EXCLUSIVE] Sprouts to Shutter Single Suburban Atlanta Store

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.  

The store opened May 11, 2016, and anchors the Sugarloaf Marketplace shopping center at the corner of Peachtree Industrial Boulevard and Sugarloaf Parkway.  The Sprouts closure comes at an unfortunate time for Cava, which just last week reopened a former Zoes Kitchen after investing in a weeks' long renovation process for the surviving Cava brand.  The absence of the upscale grocery anchor will undoubtedly affect the business negatively.  A more than 5,600 square foot Schlotzsky's Austin Eatery that also opened as part of the center closed more than a year ago and its drive-thru equipped space remains vacant and available.  

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.

51 comments:

Anonymous said...

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.

Anonymous said...

They really should open in the old Greenwise in East Cobb. That would fit their new smaller store footprint.

Anonymous said...

I hope more Sprout's locations don't close. I quite like the store.

Anonymous said...

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

Anonymous said...

@Anon 11:03. There are also some conservatives in the suburbs who will pay more for good food.

Anonymous said...

@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.

Anonymous said...

What does being liberal or conservative have to do with buying groceries ANYWHERE?? People are so dumb geez.

Anonymous said...

People are so desperate to make anything political.

RayAtL said...

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.

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

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

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

This doesn’t surprise me. Quality of produce has not been as great as it was when first opened. Also some bulk items that I love have not been available for over a year even after requesting them

Anonymous said...

I would love it if Trader Joe’s would open up in its space.

Oni said...

I used to shop here a couple times a week and we loved Sprouts. It was the only grocery I shopped in. Then they added incense and scented oils that I could smell in half the store. I have serious fragrance allergies, so I stopped going and spending my $300+ dollars a week there. I sent a letter to corporate with no response, so it's been about 4 years since I stepped foot in their store. I tried their curbside delivery but it was lacking. I mostly go to Lidl now (when not getting Walmart delivery) because it's unscented.

Anonymous said...

Are we REALLY labeling politically by where we shop???? Can’t we be individuals and have preferences????

Anonymous said...

I am so bummed! This is my store! I love that their products are focused on minimally processed/whole foods and that the store is small enough not to get lost looking for things. I get overwhelmed with the multiple isles of garbage foods found in the bigger chain stores.

Anonymous said...

I agree with you 100%. I think Trader Joe’s would be a home run in that slot

Anonymous said...

I agree 100% that Trader Joe’s would be a home run in that slot! ✅

Anonymous said...

I think it was just too close to the Fresh Market and Whole Foods honestly.

Anonymous said...

I am very upset the Duluth< Georgia store is closing. I shopped at this store two to three times per month because I could get items at sprouts that I couldn't buy at a regular grocery store. I will now have to drive a lot farther to shop at the Johns Creek location. This is very disappointing.

Anonymous said...

Yes please a Trader Joe’s

Marcy Liberty said...

That store is too big for Trader Joe's although it would be great to one closer to Suwanee since the closest is Peachtree Corners.

Anonymous said...

Since they opened the Duluth store, we used to go there every Wednesday when last weeks ad was good and the new ad went into effect. I even bought stock in the company. The deals were great and so were the prices. During Covid the prices skyrocketed and we go there to check the prices because the ads stopped being printed with the Wednesday Newspaper. We haven't been there in months. Still sorry to see it close.

Stephanie said...

This is my fav store. I am in there atleast every 2 weeks. I am very very sad to hear this news.

Anonymous said...

I agree with you ,

Anonymous said...

They say the store is too large?
Sublease what they cannot afford, repurpose what they can use.

Anonymous said...

They say the store is too large?
Sublease what they cannot afford, repurpose what they can use.

Anonymous said...

Yes! Definitely Trader Joes! Please!!!

Anonymous said...

Trader Joes! Please. We need one here!

Anonymous said...

A Trader Joe’s would be awesome!

Anonymous said...

I hate this!

Anonymous said...

Absolutely agree. Trader Joe's!

Anonymous said...

Would also LOVE to see a Trader Joe’s

Anonymous said...

Please make at least part of that space a Trader Joe’s!! I hate driving to peach tree corners just to go!

Anonymous said...

Next one will probably be Sprouts near Mall of Ga.. too difficult to navigate around the area they chose to build. Went there once and never again!

Anonymous said...

I am so bummed. That’s where I do the majority of my shopping. Wonder why they don’t downsize there and have space for something else since opening new downsized. If replace, I would like a Trader Joe’s. None nearby I’m willing to drive to.

Anonymous said...

There are also some moderates in the suburbs who like Trader Joe’s.

Anonymous said...

Always cool tunes playing. Bulk coffee and best prices on organic produce although their selection suffers at times. Large selection of supplements and oils…. Bummer. Close to house 2mi. Fortunately work “near” ptree corners store.

Anonymous said...

I too hate to see it go - I haven't shopped there as much lately, but usually find better quality of fresh vegetables than at the big-box stores. Sad to see another business in this area become empty space.

Anonymous said...

The issue with both stores is that they have incompetent store managers. They were hired without any store management experience and both store managers does not know how to treat their employees at their respective stores. Very good employees left both stores because of the store managers poor management skills. Their poor skills contributed to low Morales among their employees, when you have that, you'll be unsuccessful in maintaining a growth in your business. The leadership of the company should invest their time in a good leadership to operate their local stores. They should also throw race away in considering capable individuals to run their respective units. I'll suggest that Sprouts change their leadership in Georgia and bring in people that are well qualified to run this region.

Anonymous said...

Has the Duluth location started any closing sale discounts yet?

Anonymous said...

I'd love to see a Trader Joe's closer to us.

Anonymous said...

The Menchies reopened last week.

Anonymous said...

I hate to see the Sprouts close. We were there weekly if not biweekly purchasing health products. I just worry it will be another closed business eye sore like the close Schlotzsky’s and closed Walgreens at Meadowchurch and Sugarloaf. It makes no sense to me. I would love Trader Joe’s.

Anonymous said...

A Trader Joe's is definitely needed!

Anonymous said...

Peachtree industrial doesn’t have A trader joes. Its peachtree corners.

Anonymous said...

I’m a crunchy conservative who buys most of my groceries at Sprouts. I went to this location every week until they built the Mall of Ga location, which is closer to me. Conservatives embracing eating nose to tail are also shopping there. It’s the only place to get quality meats and good organic produce around us. Anything I can’t get at Sprouts, I get at Publix, but it’s usually only a few things.

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