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Company: Supermarket chain Sprouts Farmers Market has made big inroads into Florida in the past three years. Dave McGlinchey, chief format officer of Sprouts, tells the Business Observer in an email that the Phoenix-based chain, with more than 340 stores in the U.S., will introduce a smaller store layout in 2021 of 21,000 to 25,000 square feet. It also plans to unveil a new format design and layout in several stores.
Sprouts also aims to continue its rapid expansion in Florida this year. It entered the Sunshine State in 2017 with one store in Tampa. Now the chain is statewide with 23 stores. In 2021, Sprouts is expected to open 11 more stores in the state, including locations in Boynton Beach, Brandon, Dania Beach, Miami, Oakland Park, Port St. Lucie and Tampa Heights.
“Currently, Sprouts has five distribution centers, and we plan to open two more during the first half of 2021, including one in Orlando, which will allow us to bring fresher and more locally sourced produce to our Florida stores,” McGlinchey says.
Opportunities: Sprouts offers natural, organic and gluten-free foods along with produce, meats, vitamins and supplements. Other grocery chains have been focusing on the natural and organic realm, too, especially in recent years, following changing consumer preferences. Those product areas could be an opportunity for grocery chains in 2021 and beyond.
“While we expect more grocers and retail chains to continue to explore natural and organic products, we do not expect this to become their main focus,” says McGlinchey. “We are confident Sprouts is positioned well among this change since health-focused and attribute-driven products have been at the core of our stores since our inception.”
Threats: For the grocery industry, the pandemic has brought a host of challenges, among them supply chain issues. Working to address these issues will be a focus moving forward. McGlinchey says, “These unusual times highlight the importance of supply chain resiliency going forward.”
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