The struggling chain permanently closed several locations in the last quarter of this year.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: Wikipedia.org, ScrapeHero.com, EatThis.com, BestLifeOnline.com, and Google.com.
Wikipedia features a comprehensive overview of the Sprouts Farmers Market chain, that was founded in July of 2002: Sprouts Farmers Market, Inc., is a supermarket chain headquartered in Phoenix, Arizona, U.S. The grocer offers a wide selection of natural and organic foods, including fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, natural body care and household items. Sprouts employs more than 35,000 workers and operates more than 380 stores in 23 states. A typical store is around 30,000 square feet.
For an up-to-date location count, according to ScrapeHero.com: There are 381 Sprouts locations in the United States as of June 27, 2022. The state with the most number of Sprouts locations in the US is California, with 129 locations, which is 33% of all Sprouts locations in America.
In recent months, however, news reports have surfaced regarding considerable financial challenges facing the company. Further, many of those reports had discussed the possibility of strategic location closures of stores that had become a hindrance to the company’s bottom line, or those with leases that would not be renewed.
Those reports have proved prescient, and Sprouts has been closing locations.
Let us explore.
EatThis.com was among the first to report on imminent Sprouts closures. In its May, 2022 article titled “This Struggling Grocery Chain is Closing Several Locations Soon,” the following was stated as it regarded June closures of two San Francisco locations: Organic health food store Sprouts Farmers Market has announced it is closing two stores in the San Francisco Bay Area in California soon on June 3, SF Gate reports. While the chain did not give a specific reason for the closures, the company has been struggling amidst competition for the past few years.
These closures, though, did appear to be mainly based on lease expirations. As the article also stated: ”Choosing to close a store, and in this case two stores, is always a difficult decision," Dustin Hamilton, a regional vice president for Sprouts, told the Mercury News in a statement. "However, we've reached the end of our lease with both property owners, and with the proximity of our nearby stores, we made the decision to close these locations."
It should be noted that adding new locations was also stated as part of a formal company plan.
Per BestLifeOnline.com, in its piece titled “This Popular Grocery Store Is Closing Stores Permanently, Starting June 3,” a stalwart Colorado location also closed the same day, citing competition from Whole Foods as a possible factor: Further, Sprouts Farmers Market in Highlands Ranch, Colorado, at I1980 E. County Line Rd., will be closing permanently on the same day, according to the Denver/Boulder area's discount resource Mile High on the Cheap.
It is presently September. Are any other Sprouts locations set to close?
None have of late been announced, but the above closures, and a Wichita, Kansas location earlier this year, bear out company word that they will continue to scrutinize underperforming locations for possible strategic closings in the near future. In the meantime, while Google and social media searches bear out analyst and reader concern that the company itself is not meeting financial goals, further closings are expected in various quarters but not certain.
There has been no company word of the company shuttering its doors, to be clear. The closing of locations to now have been due to underperformance, and are strategic in nature.
Should anything change by way of major updates, I will share them here, on NewsBreak.
Thank you for reading.