This Struggling Grocery Chain Is Closing Several Locations Soon
It's not only shoppers who are struggling with inflation, it turns out. Some supermarket chains are seeing customers cut back on their grocery shopping as prices continue to increase.
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.
The news comes as it has been revealed that Sprout's sales weren't proportionate with its competitors during the pandemic, which saw tremendous growth, according to Grocery Dive. Additionally, while shoppers are still coming into the store, they are buying fewer items than before, which is likely an effect of inflation pricing.
"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."
While the outlook may appear bleak for Sprouts Farmers Markets after the announcement of the closures, CEO Jack Sinclair has plenty of hope for the future of the company. During an earnings call in May, he said there are plans for growth and "bring[ing] more buzz to [the] stores" in order to keep shoppers interested and buying products.
In addition, Sprout's website shows that there are two stores planned to open this year—one in Apopka, Fla., in May and another in Moreno Valley, Calif., on July 8. Additionally, Sprouts told Mercury News that it will continue with its plans to open approximately 15-20 stores.
While Sprouts Farmers Market may be struggling, This Is America's #1 Best Grocery Store, According to Shoppers.