Sprouts plans 13 more stores for the second half of the year

Sprouts Farmers Markets announced that it plans to open 13 stores in six states during the second half of 2019. Openings are slated for Virginia, Florida, California, Maryland, North Carolina and Arizona.

The company recently opened it's first Pennsylvania store in Philadelphia, and a store is scheduled to open on June 5 in Marlton, which will be Sprouts' first location in New Jersey.

Sprouts said it expects to have 340 stores in 22 states by the end of the year.

Sprouts to open 30 new stores in 2019

Sprouts Farmers Market announced earlier this month that it plans to open nine new stores in the second quarter of 2019. Overall, the company expects to open about 30 new stores for the year, the same as in 2018.

The stores opening in the second quarter are in New Jersey (Marlton), Louisiana, Virginia, Florida (2), California (3) and Arizona.

Eight stores opened or are slated to open in the first quarter of the year. They are in California (2), Texas, Florida (3), Washington and Nevada.

Sprouts currently operates 320 stores in 19 states.

Sprouts opens in Philly

Sprouts Farmers Market opened its first Pennsylvania store last month at Lincoln Square in Philadelphia. At 32,000 square feet, the store carries about 19,000 products, 90% of which are natural or organic, according to the company. In addition, 6,100 products are non-GMO and 7,100 are gluten free.

Sprouts currently operates 316 stores in 19 states. The company plans to open about 30 new stores per year, according to Chief Financial Officer Brad Lukow.

Sprouts confirms South Philly store but isn't coming to South Jersey

Sprouts Farmers Market announced that its first Pennsylvania store, under construction in South Philadelphia, will open before the end of the year. The 32,000 square foot store will be part of Kimco Realty's Lincoln Square development that includes Target, PetSmart and approximately 350 apartments.

It had been reported since last spring that Sprouts was coming to South Philadelphia and the vacant Macy's space at the Moorestown Mall in New Jersey. However, a spokesperson for PREIT, the mall's owner, said the company is moving forward with another grocer for the site.

Sprouts operates 280 stores in 15 states.

Sprouts expands relationship with Amazon

Despite speculation that Amazon's partnership with Sprouts Farmers Market may end due to the online giant's pending acquisition of Whole Foods, last week Sprouts confirmed plans to expand its relationship with Amazon Prime Now.

"Our partnership with Amazon Prime Now continues to grow," said Sprouts CEO Amin Maredia. "We will be delivering Sprouts products through the Prime Now service to over 20 locations across many of our major markets by year end."

Sprouts operates 260 stores in 15 states.

Lidl stores open in three states

The first Lidl stores in the U.S. opened earlier this month in North Carolina, South Carolina and Virginia. At 36,000 square feet, reports say the stores look more like car dealerships than grocery stores, with floor-to-ceiling glass covering much of the exterior.

The selections are nearly all private brands, with the packages made specifically for the U.S. market and closely resembling the national brands they are designed to replace.

According to an analysis conducted by RBC of Lidl's sales flier versus fliers of competitors, Lidl's promotional prices were 12% to 30% lower than all others - including Kroger, Sprouts Farmers Market, Publix, Food Lion and Save-A-Lot - with one exception. Lidl's and Aldi's prices were about the same.

A supplier representative told Supermarket News that Lidl appeared more concerned with quality compared to some competitors, and that the pricing was supported by a more efficient process than other buyers.

More to come as Lidl stores continue to open.

Reports say Albertsons looking to acquire Whole Foods

It has been widely reported in the last couple weeks that Albertsons has been exploring a takeover of Whole Foods, which is reportedly exploring the possibility of a sale.

The speculation comes just a couple weeks after Whole Foods investor Jana Partners raised concerns about Whole Foods' management.

Earlier this year there were reports that Albertsons was exploring a takeover of Sprouts Farmers Market. Some analysts have suggested that acquiring a public company might help Albertsons have a successful public offering of its own, which is something the company has attempted to do before.

Kroger slows pace of new stores, analysts cite over-stored market

Kroger's plans for this year include a 35% reduction in new store development, expansions and relocations as compared to last year, according to a company filing with the SEC. Kroger has 55 projects planned for 2017, while last year it had 85.

In addition, Kroger's cap-ex plans for the year include 175 major remodels plus investments in digital and technology.

"Capital expenditures in 2017 will be focused on sales-generating initiatives, remodels, upgrades to our logistics network and merchandising systems, and digital and technology initiatives," said EVP and CFO Michael Schlotman.

The cutback in new store development is no surprise, as many analysts see the industry as over-stored. Walmart, Whole Foods and Sprouts Farmers Market have also cutback new store development.

Apollo Global Management to buy The Fresh Market

The Fresh Market announced last month that it would be acquired by Apollo Global Management for about $1.36 billion. In addition, The Fresh Market Chairman Ray Berry, along with his son Brett, will roll over "the vast majority" of their company holdings with Apollo. The Berry's currently own about 9.8% of the company stock.

Apollo had previously owned Sprouts Farmers Market, which is now a leading player in the organic and fresh foods grocery market.

According to reports, The Fresh Market had seen its results suffer in recent years, as demand for fresh offerings at lower prices has hurt higher priced retailers. The company operates 187 stores in 26 states with estimated annual sales of nearly $2 billion.

Supermarket News reported that Apollo would fund the deal with $800 million in new debt and $525 million in new equity, including the Berry's contribution.