Sprouts Farmers Markets announced last week that it is dialing back its store plans for 2020 and will build smaller and simpler stores in the future. Earlier this year – prior to new CEO Jack Sinclair’s start in late June – the company said it planned to add bigger and more elaborate stores across a wide geographic footprint.
Although Sinclair hasn’t finished preparing a comprehensive strategy for the company, he said last week that bigger models were too expensive to build and market, rapid geographic expansion made it difficult to service stores effectively, and smaller stores in markets closer to distribution centers are better financial performers.
In the near future, it is expected that Sprouts will add new stores in areas more easily serviced by its five existing distribution centers in California (2), Arizona, Georgia and Texas.