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This Popular Grocery Store Is Closing Stores Permanently, Starting June 3

The company didn't give a reason, but sources raised some questions.

shopper with trolley with blurred motion of supermarket department store
iStock

While national chain stores and big-box retailers like Costco and Walmart draw shoppers around the country, regional grocers have ultra-loyal fans in pockets of the U.S. One such local favorite chain has announced it will soon close stores, and the circumstances behind the closures are raising some eyebrows. Read on to learn about what chain is closing its stores and where.

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The latest announcement comes amid other major retail closings.

A Bi-Lo supermarket in Spindale, showing parking lot, store front, and people loading food into their cars..Shutterstock

In the last couple of years, notable chains such as Giant Eagle, Piggy Wiggly, Save-a-Lot, and Kroger shuttered multiple locations across the U.S. for various reasons, according to Mashed. One grocery chain, Bi-Lo even closed its doors permanently last year after decades of service. "Thank you for 60 years," the company's website now reads. "Bi-Lo is proud to say we have been a part of your family and traditions for the past six decades. It has been our honor to bring your community quality food and great prices. As we close our doors this year, we would like to say one final thank you, to everyone who we were able to serve."

Regional favorite grocer Sprouts is preparing to close stores.

Sprouts grocery storekrblokhin / iStock

Sprouts Farmers Market—a beloved regional chain with locations in nearly half of all states, and an especially high concentration in California—is closing some of its stores permanently. The grocer didn't provide a reason for its decision to close stores, but soaring rents and other nearby competitors could have contributed, according to representatives for owners of the stores' real estate, as cited in The Mercury News.

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These are the Sprouts grocery stores that are closing.

krblokhin/iStock

In this round of closings, Sprouts will close two San Francisco Bay Area stores for good on June 3: its Fremont store at 3900 Mowry Ave. in the Fremont Plaza Shopping Center and its Mountain View store at 630 San Antonio Rd. in the World Savings Plaza.

Until June 3, the stores remain open for shoppers as normal: seven days a week, from 7 am until 10 pm.

“Choosing to close a store, and in this case two stores, is always a difficult decision,” Dustin Hamilton, a regional vice president for Sprouts, said in an emailed statement cited by The Mercury News. “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.”

Further, Sprouts Farmers Market in Highlands Ranch, Colorado, at I1980 E. County Line Rd., will be closing permanently on the same day, according to the Denver/Boulder area's discount resource Mile High on the Cheap.

Competition from Whole Foods could be a factor.

Fairfax: Green Whole Foods Market grocery store sign on exterior building in city in Virginia with people walking and autumn displays of pumpkins for HalloweeniStock

Employees at the affected Bay Area locations have been offered a chance to stay with the company, according to the statement. “We’ll work closely with each team member to facilitate the transition,” it reads. “We greatly appreciate the hard work and dedication these team members have put in over the years and hope they will continue to work for Sprouts.”

Commercial real estate agent David Taxin noted that Sprouts' decision to leave the area raised some questions, according to The Mercury News. He explained that grocers typically sign long-term leases, so the rising rents wouldn’t likely have come as a surprise to the grocer. “Are they not doing the business? That’s the question,” he said.

He noted that a Safeway had moved in nearby since Sprouts opened, and a Whole Foods more than twice the size of Sprouts just blocks away—suggesting the competitors could be pummeling the chain in the Bay Area.

Sprouts still plans new store openings this year.

Shutterstock

Despite the upcoming closures, Sprouts says it's still planning for growth in the coming months. The company said the isolated closures don't affect the grocery chain's planning to open approximately 15 to 20 stores this year, in the statement cited by Mercury News. But it didn't provide further detail.

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