New Sprouts store coming to north Phoenix
Phoenix-based grocer Sprouts Farmers Market has picked a shopping center near Arizona State University’s West Campus for its latest location.
Article originally posted here.
Sprouts (Nasdaq: SFM) is set to take over a 15,020-square-foot space at 4255 W Thunderbird Road in Phoenix at the Deer Valley Center shopping plaza.
A Sprouts spokeswoman confirmed a supermarket will be headed to that location and said the opening date and other details will be shared later. According to leasing material from Scottsdale-based Arizona Partners, the center’s landlord, the Sprouts is expected to open in late 2021.
Sprouts will be the next new addition to the center, which recently added a Vasa Fitness location as an anchor, along with a Goodwill store. Sprouts will be taking over the space of two former stores — Gordy’s Bicycles, which moved down two doors in the center and Cotton Cactus, a clothing store that will soon be closing its doors for good. The entire center is undergoing major renovations in 2020 and 2021, according to Arizona Partners’ website.
The Sprouts location will be significantly smaller than most of its stores. Sprouts CEO Jack Sinclair has said starting in 2021 the company will be opening stores with a smaller layout. Going from 30,000 square feet to 21,000 and 25,000 square feet.
“These smaller stores can deliver sales on a par with the larger store as proven with historical locations we have today, resulting in strong returns of a simple model, setting us up well to expand across the country,” Sinclair said, during a call with investors in May.
Another Valley store on way
Sprouts is also working on developing another new store south of Phoenix in Maricopa. That store will be 23,290 square feet.
The Deer Valley Center has two different owners and in an easement agreement filed with the Maricopa County Recorder’s Office in August between the owners — Arizona Partners and BCB Group Investments — it showed that both owners are considering expanding the center.
In the document, each party agreed to the option of building a 3,500-square-foot building in the current parking area. In Arizona Partners’ marketing material, it says that a future drive-thru location will be built there.
Sprouts is also set to anchor Sonoran Creek Marketplace, a retail development under construction by Thompson Thrift Retail Group, in Maricopa. It is expected to open in September 2021.
While leasing and investing in retail real estate has been down in 2020 since the Covid-19 pandemic started, CoStar’s director of market analytics in Phoenix, Jessica Morin, recently said that grocery stores remain one of the bright spots in the industry.
“Some segments of retail are doing well, and grocers, discount retailers and drive-thrus are expanding,” Morin said. “The strength in these segments is driving investor interest, though sales volume is still down from last year.”