Phoenix, Arizona-based Sprouts Farmers Market, which entered the Atlanta market in 2014, informed staff at their Dunwoody store Thursday that it would permanently close at 5PM on Sunday, December 23. The store, which was one of the first five Sprouts in the Atlanta area to open, debuted to crowds when it opened July 16, 2014. The store opened in place of what had been a vacant anchor space but which had been previously occupied by an Ace Hardware and before that, Harris Teeter. Kroger, which purchased a number of stores from Harris Teeter when the grocer left the market n 2001, never opened in the space, but continued to control the lease to limit competition to their nearby store. The eventual Sprouts opening was seen as a win for the neighborhood.
The closure, which sources indicate is due to disappointing sales and the imminent end of a five year lease, is reportedly the only closure the chain plans in Atlanta in the near term. Liquidation sales have not yet started but could begin as soon as this weekend according to a store employee.
The Dunwoody store is located in Mt. Vernon Shopping Center, bounded by Mount Vernon Road, Jett Ferry Road and Dunwoody Club Drive. The store employs over 100 people, only some of whom are being offered other positions within the company.
ToNeTo Atlanta reported in October that a new Chick-fil-A backed venture called Kefi is opening their first ever location in Buckhead in 2019. The concept is multifaceted, intended for both children and parents, and is expected to include activities, work space and a cafe, among other amenities. The Buckhead location will open in a former Circuit City/hhgregg, making it similar in size to the Dunwoody Sprouts. If the concept proves viable, this Sprouts in Dunwoody could be a good real estate win for Kefi.
Sprouts operates sixteen other stores, most in metro Atlanta, but also some in more exurban locales such as Peachtree City, Woodstock, Cumming and Augusta, among others. The Snellville store, the company's first to open in metro Atlanta, is reportedly one of the chain's most successful locally. In addition to the Snellville and Dunwoody stores, the company also opened stores in Norcross and Johns Creek during their initial 2014 launch.
The closure of the Dunwoody Sprouts concludes a difficult year in Atlanta's upscale grocery market. Earth Fare and The Fresh Market each closed two locations in Georgia and Whole Foods Market has told its staff that it will shutter its longstanding Briarcliff store next spring.
Sprouts announced plans in late October to open seven new stores in the first quarter of 2019, with a total of 30 new locations on tap for next year. None of the seven announced stores were slated for Georgia.
Sprouts stock (NASDAQ:SFM) was down just over 4 percent after hours Thursday, likely on the news that its CEO would be leaving the company effective December 30, 2018. Amin Maredia, who has served as the company's CEO since August 2015, is leaving the company to "pursue other interests," according to a release from the company. Jim Nielsen, the Company’s president and chief operating officer, and Brad Lukow, the Company’s chief financial officer, will serve as the Company’s co-interim chief executive officers until a permanent successor is named.
Before the news broke, the company's stock had been up a modest 11 percent year to date and a respectable 24.5 percent over the past six months.
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