Sprouts Closing 11 Stores, to focus on "smaller concept."

[storewanderer]

Yeah.........................and keeping the large size of the useless supplements department..............so stupid!

The smaller Reno Store on Plumb Lane has a smaller supplements department (there is less wall space, at least one fewer aisle, and the aisles are shorter) but perhaps it is proportionate with the downsizing of other parts of the store too.

That is a super high margin category for them (until they go do inventory and see how much was stolen). They have cut SKUs significantly in that category over the years. I find their supplement category to be largely useless. The couple times I tried to go buy something there lately in that category, it was either not carried or was out of stock. Recently even a mouthwash I had been buying and knew they had, they didn't have anymore. I had to go buy at Natural Grocers.

However in observing transactions at Sprouts I do see purchases occurring from that department (usually just single item purchases) and the purchases tend to be fairly high dollar. While that department may appear to be a waste of space my guess is it actually carries itself due to the high mark up of the items involved.

Regular supplement users order online due to the prices being so much lower. Places like Sprouts, Natural Grocers, Vitamin Shop, etc. are only for immediate need.

[ClownLoach]

Updated list:

Duluth, GA 28,600 square feet opened 2016.
Lynnwood, WA opened 2019 30,000 square feet.
Wellington, FL opened 2019 30,000 square feet.
West Hollywood, CA (mentioned above)
Houston, TX Westheimer/Kirkwood- opened 2013- 28,000 square feet
Houston, TX OST/Kirby - Opened 10/2020 (do I have the right store?) 26,000 square feet- looks like current prototype?
Sugar Land, TX- Opened 2019 30,000 square feet
Roseville, CA - East Roseville - opened 2011- 36,000 square feet
Cupertino, CA - Opened 2014- 21,000 square feet
Sandy Springs, GA - Opened 2015 - 30,000 square feet

So the Lake Forest store, which is just over 30,000 Sq ft and the same format that is allegedly cash flow negative in all locations according to the CEO, is staying open. Obviously he is misleading the public and his organization. There must be a faction within their corporate offices that likes the larger format stores and he doesn't. Their new smaller format and oddball prototypes are not interesting to me at all, they reduce the selection of Fresh items and perimeter to nothing leaving no reason to shop there.

Yeah.........................and keeping the large size of the useless supplements department..............so stupid!

They don't have a larger supplement section than any other format Sprouts operates. I do take a few supplements that are harder to find and Sprouts actually has the best pricing.

The small format makes no sense. First problem is the bizarre communal work area and combined counter for bakery, meat, seafood, and deli. Have they ever heard of cross contamination? Clearly designed by someone who doesn't understand food safety. I don't want deli meat weighed on a scale that just had raw poultry on it... And yes I actually saw an obviously untrained young employee accidentally use the wrong scale since they're practically next to each other. Produce is cut in half and poorly displayed on new fixtures. Tons of traditional center store grocery, lots of frozen food space, but many double facings and poor overall selection.

[storewanderer]

They don't have a larger supplement section than any other format Sprouts operates. I do take a few supplements that are harder to find and Sprouts actually has the best pricing.

The small format makes no sense. First problem is the bizarre communal work area and combined counter for bakery, meat, seafood, and deli. Have they ever heard of cross contamination? Clearly designed by someone who doesn't understand food safety. I don't want deli meat weighed on a scale that just had raw poultry on it... And yes I actually saw an obviously untrained young employee accidentally use the wrong scale since they're practically next to each other. Produce is cut in half and poorly displayed on new fixtures. Tons of traditional center store grocery, lots of frozen food space, but many double facings and poor overall selection.

I guess in CA Sprouts does have some of the best supplement pricing for a retail store. They certainly have better pricing than Whole Foods (worst supplement pricing around). The main grocers don't handle many supplements in CA at all; Raleys once had a great mix but over the years it is way less than before. Safeway has never even tried to get into supplements. In other states there tend to be more options; regular grocers with larger supplement areas (including various Kroger banners), Natural Grocers, and some others.

But I think most of the supplement business has moved online due to price reasons.

[veteran+]

Any Sprouts I have been in, regarding supplements, is about the same. Hardly no one shopping there. The "specialist" in supplements, no where to be found.

My point is, instead all that space for supplements, why not give some more room to things like service (fresh) counters (and as Clown stated, more room for separate operations for meat, seafood and others).

Sprouts is barely a "farmer's market". You need more fresh food and even center store food. Farmer's markets sell Food! And organics? Less than even Pavilions and way less than Ralphs.

Every square inch counts in small format stores where variety may not be possible. I get that the Supplements may be Sprouts' high margin department like non foods are in Big supermarkets or hypermarkets, but if very few are shopping it and buying, what's the point?

I just think their "balance" in sales of high margin and low margin have been off for quite a while especially as it pertains to the store's size.

[rwsandiego]

Any Sprouts I have been in, regarding supplements, is about the same. Hardly no one shopping there. The "specialist" in supplements, no where to be found.

My point is, instead all that space for supplements, why not give some more room to things like service (fresh) counters (and as Clown stated, more room for separate operations for meat, seafood and others).

Sprouts is barely a "farmer's market". You need more fresh food and even center store food. Farmer's markets sell Food! And organics? Less than even Pavilions and way less than Ralphs.

Every square inch counts in small format stores where variety may not be possible. I get that the Supplements may be Sprouts' high margin department like non foods are in Big supermarkets or hypermarkets, but if very few are shopping it and buying, what's the point?

I just think their "balance" in sales of high margin and low margin have been off for quite a while especially as it pertains to the store's size.

The last time I visited San Diego, I stopped into the North Park Sprouts. This location was a Henry's and before that a Boney's. They had the same quantity of supplements as before and had a specialist. (Not sure their depth of knowledge, though). It is a small store (former Marina Safeway) but, as before, large produce department (it takes up most of the store), small deli and meat departments (service meat and limited-service deli), and a small "center store."

As it was when I lived in SD and shopped there, it was packed. In fact, there was one remaining space in the parking lot, as was the case when I lived there.

Sprouts has some larger legacy Henry's/Boney's stores (PB, Point Loma, and Encinitas come to mind), but they don't seem to be as large as some of the newer locations, such as in Phoenix. Still, they are similarly laid out and carry the same product mix as the North Park store. Like the North Park store, they are always busy.

One of the interviews with Jack Sinclair mentioned he wanted to replicate the format they have in San Diego. I am not sure how well the format would transfer, given that San Diegans have shopped at Sprouts/Henry's/Boney's for decades, but they do not have the same cache elsewhere. They have almost a cult status regarding supplements in San Diego. Then again, San Diego isn't LA, Florida, or Maine.

[storewanderer]

In a lot of regions where existing grocers have large supplement departments, Sprouts hasn't bothered to expand much and has a tract record of closing stores. Fred Meyer has extensive supplements. King Soopers in Colorado has extensive supplements. The larger Dillons Stores and some larger Kroger Stores also have extensive supplements. Hy-Vee has extensive supplements and Sprouts I don't think goes into their territories at all.

The customer who buys supplements at Sprouts doesn't tend to browse the department much. Sometimes someone will be browsing for a long time period trying to find something but I see less and less of that in recent years. Generally, the customers in that department know what they want, get it, and leave the department. The department is usually deserted yet in watching Sprouts checkout I estimate 1:6ish customers who shops Sprouts buys something from that department.

I do think in the territories where Natural Grocers competes with Sprouts, they have impacted Sprouts supplement business.

Natural Grocers always staffs its supplement department too. It is easy since they rarely have more than 2-3 shoppers in the store.

[veteran+]

Any Sprouts I have been in, regarding supplements, is about the same. Hardly no one shopping there. The "specialist" in supplements, no where to be found.

My point is, instead all that space for supplements, why not give some more room to things like service (fresh) counters (and as Clown stated, more room for separate operations for meat, seafood and others).

Sprouts is barely a "farmer's market". You need more fresh food and even center store food. Farmer's markets sell Food! And organics? Less than even Pavilions and way less than Ralphs.

Every square inch counts in small format stores where variety may not be possible. I get that the Supplements may be Sprouts' high margin department like non foods are in Big supermarkets or hypermarkets, but if very few are shopping it and buying, what's the point?

I just think their "balance" in sales of high margin and low margin have been off for quite a while especially as it pertains to the store's size.

The last time I visited San Diego, I stopped into the North Park Sprouts. This location was a Henry's and before that a Boney's. They had the same quantity of supplements as before and had a specialist. (Not sure their depth of knowledge, though). It is a small store (former Marina Safeway) but, as before, large produce department (it takes up most of the store), small deli and meat departments (service meat and limited-service deli), and a small "center store."

As it was when I lived in SD and shopped there, it was packed. In fact, there was one remaining space in the parking lot, as was the case when I lived there.

Sprouts has some larger legacy Henry's/Boney's stores (PB, Point Loma, and Encinitas come to mind), but they don't seem to be as large as some of the newer locations, such as in Phoenix. Still, they are similarly laid out and carry the same product mix as the North Park store. Like the North Park store, they are always busy.

One of the interviews with Jack Sinclair mentioned he wanted to replicate the format they have in San Diego. I am not sure how well the format would transfer, given that San Diegans have shopped at Sprouts/Henry's/Boney's for decades, but they do not have the same cache elsewhere. They have almost a cult status regarding supplements in San Diego. Then again, San Diego isn't LA, Florida, or Maine.

I lived in San Diego from 2016 to 2020. I have been to that Sprouts and never noticed they were busy or no parking spaces. My ex partner and I tried several times to shop there and walked out buying so much less than we wanted. We lived in Hillcrest so it was close enough.

Also the store is run down and the parking lot usually dirty. On the outside the store is sort of ugly and worn out.

[ClownLoach]

Here is the final closing list with footage and lease ends. Not sure what's up with that Cupertino location other than it's pretty small; I was there about 5 years ago and it was very busy. Did they open another store in the area that is pulling the traffic over?

20558 Stevens Creek Blvd.; Cupertino, Calif. (20,901 square feet, lease expires Dec. 31, 2024)
6760 Stanford Ranch Road; Rocklin, Calif. (36,041 square feet, lease expires June 30, 2026)
8550 Santa Monica Blvd.; West Hollywood, Calif. (25,000 square feet, lease expires July 31, 2034)
820 S. State Road 7; Wellington, Fla. (30,158 square feet, lease expires March 31, 2034)
4600 Roswell Road NE; Atlanta, Ga. (25,826 square feet, lease expires Sept. 30, 2030)
2220 Peachtree Industrial Blvd.; Duluth, Ga. (29,896 square feet, lease expires May 31, 2031)
11940 Westheimer Road; Houston, Texas (32,945 square feet, lease expires Aug. 31, 2028)
1212 Old Spanish Trail; Houston, Texas (44,894 square feet, lease expires Oct. 31, 2035)
13550 University Blvd.; Sugar Land, Texas (29,906 square feet, lease expires Jan. 31, 2034)
19630 Hwy 99; Lynnwood, Wash. (29,896 square feet, lease expires Feb. 28, 2034

[veteran+]

Here is the final closing list with footage and lease ends. Not sure what's up with that Cupertino location other than it's pretty small; I was there about 5 years ago and it was very busy. Did they open another store in the area that is pulling the traffic over?

20558 Stevens Creek Blvd.; Cupertino, Calif. (20,901 square feet, lease expires Dec. 31, 2024)
6760 Stanford Ranch Road; Rocklin, Calif. (36,041 square feet, lease expires June 30, 2026)
8550 Santa Monica Blvd.; West Hollywood, Calif. (25,000 square feet, lease expires July 31, 2034)
820 S. State Road 7; Wellington, Fla. (30,158 square feet, lease expires March 31, 2034)
4600 Roswell Road NE; Atlanta, Ga. (25,826 square feet, lease expires Sept. 30, 2030)
2220 Peachtree Industrial Blvd.; Duluth, Ga. (29,896 square feet, lease expires May 31, 2031)
11940 Westheimer Road; Houston, Texas (32,945 square feet, lease expires Aug. 31, 2028)
1212 Old Spanish Trail; Houston, Texas (44,894 square feet, lease expires Oct. 31, 2035)
13550 University Blvd.; Sugar Land, Texas (29,906 square feet, lease expires Jan. 31, 2034)
19630 Hwy 99; Lynnwood, Wash. (29,896 square feet, lease expires Feb. 28, 2034

The West Hollywood store is 20,000sqft (including backroom). Sales floor looks to be 16,000sqft.

They purportedly have a 5,000sqft basement as well, not accessible of course to customers.

[storewanderer]

There is no Sprouts in Rocklin, CA. The store is in Roseville, CA (Rocklin is across the street...).

Funny they now don't want to admit to closing a store in Roseville. I agree closing in Roseville looks pretty bad.