This company is literally fixated with ESG. They have an executive who is in charge of ESG. The big consulting firms were hoping ESG would be the "next big thing" to sell various businesses on after changes in lease accounting which made those firms a fortune. A lot of companies bit at first but many have pulled back and I expect profitability pressures will cause continued pull back at a lot of companies. But Sprouts is fully committed.
This website only validated my point. They were developing the new small format in 2019-2020 with first completed in 2021. Nothing about small format being part of ESG in those updates. The report is the same as those seen at other companies where Apollo was involved. The reality is that you'll quickly recognize that all of their ESG credited initiatives are either things they were already doing (such as annual manager meetings which BTW aren't great for the environment when considering all the plane travel) or are connected to cost cutting initiatives.
I'm not opposed to ESG initiatives. I am opposed to greenwashing and such which they're great at.
Read the 2022 report which was released June 2023. Everything they are doing with regards to smaller stores, no "single use" bags (but super thick plastic ones are fine since they can say they are reusable), is a desperate move to improve their ESG score.
What is odd is their debt is tied to some ESG initiatives but it doesn't seem to be tied to things like store size or emissions. Maybe they are trying to state some achievements on that front for future loan negotiations.
storewanderer wrote: ↑January 3rd, 2024, 10:14 pm
You can read more here:
This company is literally fixated with ESG. They have an executive who is in charge of ESG. The big consulting firms were hoping ESG would be the "next big thing" to sell various businesses on after changes in lease accounting which made those firms a fortune. A lot of companies bit at first but many have pulled back and I expect profitability pressures will cause continued pull back at a lot of companies. But Sprouts is fully committed.
This website only validated my point. They were developing the new small format in 2019-2020 with first completed in 2021. Nothing about small format being part of ESG in those updates. The report is the same as those seen at other companies where Apollo was involved. The reality is that you'll quickly recognize that all of their ESG credited initiatives are either things they were already doing (such as annual manager meetings which BTW aren't great for the environment when considering all the plane travel) or are connected to cost cutting initiatives.
I'm not opposed to ESG initiatives. I am opposed to greenwashing and such which they're great at.
Read the 2022 report which was released June 2023. Everything they are doing with regards to smaller stores, no "single use" bags (but super thick plastic ones are fine since they can say they are reusable), is a desperate move to improve their ESG score.
What is odd is their debt is tied to some ESG initiatives but it doesn't seem to be tied to things like store size or emissions. Maybe they are trying to state some achievements on that front for future loan negotiations.
We will just have to agree to disagree on this one. The small format program is now being credited as work for ESG, but that doesn't mean that the ESG program was the source of it as is being projected. Furthermore since they signed a ESG based loan obviously they're going to claim everything from the store size to the brand of toilet paper in the restroom is based on ESG. My point is that there are people on boards and in positions in these companies who go around and look at all the work that is being done, and then they include it in the ESG report as if that was the motivating factor.
And really, an ESG report showing new coffin freezers that do not have covers on them? Covers were claimed by several chains to reduce energy use by over 50%. But they cost extra with covers. Thus further proving my point that they care more about money than ESG. If they really cared about it they would be running to order covers for all coffin coolers ASAP as well as swing door retrofit kits for vertical coolers, as Kroger and others did many years before the acronym ESG was invented. Heck, even Fresh & Easy had cooler doors for the environment along with LED fixtures. I still see many Sprouts with 6 bulb fixtures that still have florescent tubes in them, those should be yanked out and replaced with direct wired LED fixtures to reduce energy use under the ESG program... But that costs money to do that work the right way (to maximize the energy savings), so...
We will just have to agree to disagree on this one. The small format program is now being credited as work for ESG, but that doesn't mean that the ESG program was the source of it as is being projected. Furthermore since they signed a ESG based loan obviously they're going to claim everything from the store size to the brand of toilet paper in the restroom is based on ESG. My point is that there are people on boards and in positions in these companies who go around and look at all the work that is being done, and then they include it in the ESG report as if that was the motivating factor.
And really, an ESG report showing new coffin freezers that do not have covers on them? Covers were claimed by several chains to reduce energy use by over 50%. But they cost extra with covers. Thus further proving my point that they care more about money than ESG. If they really cared about it they would be running to order covers for all coffin coolers ASAP as well as swing door retrofit kits for vertical coolers, as Kroger and others did many years before the acronym ESG was invented. Heck, even Fresh & Easy had cooler doors for the environment along with LED fixtures. I still see many Sprouts with 6 bulb fixtures that still have florescent tubes in them, those should be yanked out and replaced with direct wired LED fixtures to reduce energy use under the ESG program... But that costs money to do that work the right way (to maximize the energy savings), so...
So your point is they came up with the small store program years before anything to do with ESG came up for them, and now they are using that program at the present time to say the smaller stores further their ESG goals? I agree with that. All I was trying to say is they are connecting this small store program to ESG and using ESG to justify a downgraded store prototype. But your point is that it is all about cost savings and has nothing to do with ESG?
They can install covers after the fact. I'm not sure those covers installed after the fact work as well as a proper build with the covers installed right from the start. In the case of Kroger they covered up most of the open wall refrigeration (but not the coffins) at Smiths and the cheap doors etc. they installed fall off a lot.
I think Sprouts puts its money into new stores. I don't see much happening with existing stores. We still don't even have self checkouts around Reno. They haven't spent a cent on anything in these stores since they opened. I have seen some Sprouts that appear to have gotten remodels inside (mostly former Henry units) to put in Sprouts decor and take out the stuff where they put Sprouts stickers over the Henry logos.
We will just have to agree to disagree on this one. The small format program is now being credited as work for ESG, but that doesn't mean that the ESG program was the source of it as is being projected. Furthermore since they signed a ESG based loan obviously they're going to claim everything from the store size to the brand of toilet paper in the restroom is based on ESG. My point is that there are people on boards and in positions in these companies who go around and look at all the work that is being done, and then they include it in the ESG report as if that was the motivating factor.
And really, an ESG report showing new coffin freezers that do not have covers on them? Covers were claimed by several chains to reduce energy use by over 50%. But they cost extra with covers. Thus further proving my point that they care more about money than ESG. If they really cared about it they would be running to order covers for all coffin coolers ASAP as well as swing door retrofit kits for vertical coolers, as Kroger and others did many years before the acronym ESG was invented. Heck, even Fresh & Easy had cooler doors for the environment along with LED fixtures. I still see many Sprouts with 6 bulb fixtures that still have florescent tubes in them, those should be yanked out and replaced with direct wired LED fixtures to reduce energy use under the ESG program... But that costs money to do that work the right way (to maximize the energy savings), so...
So your point is they came up with the small store program years before anything to do with ESG came up for them, and now they are using that program at the present time to say the smaller stores further their ESG goals? I agree with that. All I was trying to say is they are connecting this small store program to ESG and using ESG to justify a downgraded store prototype. But your point is that it is all about cost savings and has nothing to do with ESG?
They can install covers after the fact. I'm not sure those covers installed after the fact work as well as a proper build with the covers installed right from the start. In the case of Kroger they covered up most of the open wall refrigeration (but not the coffins) at Smiths and the cheap doors etc. they installed fall off a lot.
I think Sprouts puts its money into new stores. I don't see much happening with existing stores. We still don't even have self checkouts around Reno. They haven't spent a cent on anything in these stores since they opened. I have seen some Sprouts that appear to have gotten remodels inside (mostly former Henry units) to put in Sprouts decor and take out the stuff where they put Sprouts stickers over the Henry logos.
Let me put it this way... Every Executive level meeting I've attended at my company that discussed an ESG initiative would end with one of three very specific things... "AND" This is going to increase sales by $X, or This is going to increase profits by $X, or This is going to reduce this expense by $X. No ESG program presentation at the Exec level ever ended without one of those three qualifiers, because they simply won't institute these programs unless $$$ are attached. And that is how corporate America really works; they decide to make a financial decision and if it can be attributed to ESG then they add that title. But few companies (maybe Apple?) actually put ESG first in the organization.
To be completely clear: I'm interpreting your statement as Sprouts went to small format because of ESG. I do not believe that to be true, as I believe cost cutting was their #1 focus at the time which was seen everywhere in their business as they eliminated most of their payroll spend and eliminated promotions/bargain prices simultaneously.
Having said that, a properly executed small format that is engineered properly to reduce consumption would be a good example of an ESG program.
I'm just saying that I doubt ESG wasn't driving the bus when this decision was made, and certainly was not the primary motivation for the change.
Let me put it this way... Every Executive level meeting I've attended at my company that discussed an ESG initiative would end with one of three very specific things... "AND" This is going to increase sales by $X, or This is going to increase profits by $X, or This is going to reduce this expense by $X. No ESG program presentation at the Exec level ever ended without one of those three qualifiers, because they simply won't institute these programs unless $$$ are attached. And that is how corporate America really works; they decide to make a financial decision and if it can be attributed to ESG then they add that title. But few companies (maybe Apple?) actually put ESG first in the organization.
To be completely clear: I'm interpreting your statement as Sprouts went to small format because of ESG. I do not believe that to be true, as I believe cost cutting was their #1 focus at the time which was seen everywhere in their business as they eliminated most of their payroll spend and eliminated promotions/bargain prices simultaneously.
Having said that, a properly executed small format that is engineered properly to reduce consumption would be a good example of an ESG program.
I'm just saying that I doubt ESG wasn't driving the bus when this decision was made, and certainly was not the primary motivation for the change.
I don't think they "went to" small format in 2019 or whenever because of ESG (as you point out at the time they did small format it was all about cost cutting and also being able to build more stores more quickly), but I think their current push on small format and how proud of it they are trying to be, is/was being used in 2023 as a way for them to say their store of the future is ESG friendly and by building these small stores in 2023 and beyond, they are achieving ESG goals.
Let me put it this way... Every Executive level meeting I've attended at my company that discussed an ESG initiative would end with one of three very specific things... "AND" This is going to increase sales by $X, or This is going to increase profits by $X, or This is going to reduce this expense by $X. No ESG program presentation at the Exec level ever ended without one of those three qualifiers, because they simply won't institute these programs unless $$$ are attached. And that is how corporate America really works; they decide to make a financial decision and if it can be attributed to ESG then they add that title. But few companies (maybe Apple?) actually put ESG first in the organization.
To be completely clear: I'm interpreting your statement as Sprouts went to small format because of ESG. I do not believe that to be true, as I believe cost cutting was their #1 focus at the time which was seen everywhere in their business as they eliminated most of their payroll spend and eliminated promotions/bargain prices simultaneously.
Having said that, a properly executed small format that is engineered properly to reduce consumption would be a good example of an ESG program.
I'm just saying that I doubt ESG wasn't driving the bus when this decision was made, and certainly was not the primary motivation for the change.
I don't think they "went to" small format in 2019 or whenever because of ESG (as you point out at the time they did small format it was all about cost cutting and also being able to build more stores more quickly), but I think their current push on small format and how proud of it they are trying to be, is/was being used in 2023 as a way for them to say their store of the future is ESG friendly and by building these small stores in 2023 and beyond, they are achieving ESG goals.
Gotcha. I misunderstood you.
I still believe there is incredible waste of energy and product in the Sprouts format. I would be willing to bet that per square foot their small format energy use is far higher than comparably sized food retailers such as Aldi, thus limiting the benefit of the smaller format. Sure, it might use less than a big store, but I can't imagine they're even in the top half of actual efficiency if benchmarked against the rest of the industry.
Gotcha. I misunderstood you.
I still believe there is incredible waste of energy and product in the Sprouts format. I would be willing to bet that per square foot their small format energy use is far higher than comparably sized food retailers such as Aldi, thus limiting the benefit of the smaller format. Sure, it might use less than a big store, but I can't imagine they're even in the top half of actual efficiency if benchmarked against the rest of the industry.
I wonder about this. The issue with Sprouts is the amount of "open" refrigeration all over.
One thing that may help them vs. other operators: Sprouts does have mostly "warm" tables in produce (except the vegetable rack and a small cooler for berries). Some other chains have almost all of produce with refrigerated cases (Ralphs used to do this, as did Raleys, as did Albertsons... back in the 90's.... they have stopped on newer stores... Stater is one who I have noticed is still like that... but maybe it is different in the new stores?).
I shopped in Sprouts tonight and frankly the store was a mess. Deli was probably 20% stocked at best (prepack lunchmeat, prepared foods, cheeses, everything in those cooler "aisles" in front of deli was nearly empty- and the shelves need a real good scrub). They turned their coffin deli "pizza zone" cooler into a markdown area and that was actually full. Bakery wasn't stocked well either. Produce actually looked okay. Meat case was foggy/dirty, I think maybe the stuff inside was okay but with the condition of the case it didn't look okay. Going over to the aisles it is fully stocked but doesn't look like it has been fronted/faced in days. Couple of cashiers I've never seen before but they were exceedingly friendly. Sprouts is issuing $5 off $50 on all receipts, they did this much of December too.
Gotcha. I misunderstood you.
I still believe there is incredible waste of energy and product in the Sprouts format. I would be willing to bet that per square foot their small format energy use is far higher than comparably sized food retailers such as Aldi, thus limiting the benefit of the smaller format. Sure, it might use less than a big store, but I can't imagine they're even in the top half of actual efficiency if benchmarked against the rest of the industry.
I wonder about this. The issue with Sprouts is the amount of "open" refrigeration all over.
One thing that may help them vs. other operators: Sprouts does have mostly "warm" tables in produce (except the vegetable rack and a small cooler for berries). Some other chains have almost all of produce with refrigerated cases (Ralphs used to do this, as did Raleys, as did Albertsons... back in the 90's.... they have stopped on newer stores... Stater is one who I have noticed is still like that... but maybe it is different in the new stores?).
I shopped in Sprouts tonight and frankly the store was a mess. Deli was probably 20% stocked at best (prepack lunchmeat, prepared foods, cheeses, everything in those cooler "aisles" in front of deli was nearly empty- and the shelves need a real good scrub). They turned their coffin deli "pizza zone" cooler into a markdown area and that was actually full. Bakery wasn't stocked well either. Produce actually looked okay. Meat case was foggy/dirty, I think maybe the stuff inside was okay but with the condition of the case it didn't look okay. Going over to the aisles it is fully stocked but doesn't look like it has been fronted/faced in days. Couple of cashiers I've never seen before but they were exceedingly friendly. Sprouts is issuing $5 off $50 on all receipts, they did this much of December too.
Their execution from store to store, even in the same city and same "format", is absolutely shocking. It's not even like a real "chain" these days. Some stores look like a bad IGA or something like that.
Their execution from store to store, even in the same city and same "format", is absolutely shocking. It's not even like a real "chain" these days. Some stores look like a bad IGA or something like that.
I almost think they should get rid of bakery, service meat/seafood, and deli entirely at this point and go to complete prepack product. Maybe it is different in other areas but these departments seem to do almost no sales in my area. I actually like some of their bakery items- really like the jalapeno cheese rolls (look like a muffin), have liked some of those cake slices, have liked some cookies, used to like the muffins (don't know what happened to those), they put out a good Irish Soda Bread every St. Patrick's Day... their deli seems to have a big assortment that could be something good, but is a complete fail in execution.
I would love to see the data on how much they actually sell in the vitamin/supplement department.
What could be the sales per square foot in that part of the store? So much space dedicated to this category.
The labor to stock these mostly small packages is quite different than that of other departments.
I ask because I have never witnessed this area to be busy at any Sprouts I have ever been in (Florida, Colorado, California). And often there is no knowledgeable clerk in that department.
