Recently,
I was invited to the grand opening of the new Sprout’s distribution center.
Because I wear two hats - commercial real estate broker and contributing
columnist for Southern California News Group - this invitation had a special
appeal to me. The transaction was a high profile one and the shiny new
logistics building replaced an aging paper plant. You see, Sprouts
Farmers Market, the well-known grocery store chain specializing in fresh and
organic products, recently made a significant move, setting up its state-of-the-art
distribution center in Fullerton, California. This move not only marks a new
chapter for Sprouts but also promises to have a positive impact on the local
community and the environment.
Before its relocation to Fullerton, Sprouts Farmers Market operated out of Colton, California in a facility leased by Lineage Logistics. But the company's new distribution center signifies a strategic shift. Sprouts is dedicated to delivering fresh produce to its customers, and this new facility strengthens that commitment. According to Joe Hurley, chief supply chain officer for the firm, the operation boasts state-of-the-art cold storage rooms cooled to an ambient temperature of 34°F and 55°F. Also, transportation-related emissions are reduced by saving an estimated 725,000 annual road miles from current delivery routes due to its proximity to stores.
To provide the community with an inside look at their impressive facility, Sprouts held an open house event. The event was attended by Fullerton's Mayor, Fred Jung, the leadership team of Sprouts, and many of the employees that work in the location everyday with the commitment of delivering their customers the freshest produce. Attendees had the opportunity to witness the significant capital investment that went into the building, as well as explore the ripening rooms for bananas and avocados, among other highlights. Perhaps the most heartwarming aspect of the event was the generous donation of $65,000 to Fullerton schools by the Sprouts Charitable Foundation. Commonwealth Elementary received $15,000, while Maple Elementary received a substantial $50,000 donation, with a particular focus on cafeteria composting.
At the helm of Sprouts Farmers Market is CEO Jack Sinclair, who took the reins in 2019. With a pleasant Scottish brogue and a pedigree including stints at Walmart and 99 Cent Stores, little did he know that his tenure would coincide with the COVID-19 pandemic, which presented unique challenges to the industry. Despite these challenges, Sinclair had a clear vision for the company. Sinclair's objectives included targeting Sprouts' customer base, described as “health enthusiasts and innovation seekers”. While the U.S. grocery industry is vast, with an estimated worth of $1.2 trillion, Sprouts has dedicated itself to focusing on a $200 billion slice of that business. To achieve this, Sinclair also aimed to enhance the supply chain, a goal that has been realized with distribution centers now in Aurora, Colorado, Orlando, Florida, and Fullerton, California. Additionally, he envisioned new stores with a smaller footprint and aims to grow the company's approximately 402 stores nationally by 10% per year, primarily in the Sun Belt region.
Sprouts' presence in Fullerton is not just about bricks and mortar; it's about creating opportunities and giving back to the community. The 337,000 square-foot logistics building, of which Sprouts occupies roughly 250,000 square feet, has added approximately 190 full time jobs to the community. But the impact extends beyond employment. Through the Sprouts Healthy Communities Foundation, the company is making substantial donations to local schools, supporting nutrition, education, composting, and even school gardens where students learn firsthand how produce is grown and delivered to stores.
Standout features of the Sprouts distribution center are myriad beginning with the presence of ripening rooms within the cold storage area. These rooms allow for the precise control of temperature and humidity, ensuring that avocados and bananas reach stores at the perfect level of ripeness. Aligned with Sprouts' commitment to environmental sustainability - the facility is designed for future solar panel implementation and LEED certification, emphasizing Sprouts' commitment to green building practices. In an effort to encourage environmental responsibility among its employees, the center provides 11 electric vehicle charging stations, with plans for future expansion. Additionally, an electric vehicle terminal truck assists with daily yard operations.
Sprouts Farmers Market's relocation to Fullerton, California, represents not only a strategic business move but also a commitment to its customers, employees, and the local community. With its dedication to fresh produce, environmental sustainability, and community engagement, Sprouts sets an example for businesses looking to make a positive impact on both a local and global scale. As we witness the fruits of their labor ripening in the heart of Southern California, it's clear that Sprouts Farmers Market is not just a grocery store but a genuine community partner.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
Before its relocation to Fullerton, Sprouts Farmers Market operated out of Colton, California in a facility leased by Lineage Logistics. But the company's new distribution center signifies a strategic shift. Sprouts is dedicated to delivering fresh produce to its customers, and this new facility strengthens that commitment. According to Joe Hurley, chief supply chain officer for the firm, the operation boasts state-of-the-art cold storage rooms cooled to an ambient temperature of 34°F and 55°F. Also, transportation-related emissions are reduced by saving an estimated 725,000 annual road miles from current delivery routes due to its proximity to stores.
To provide the community with an inside look at their impressive facility, Sprouts held an open house event. The event was attended by Fullerton's Mayor, Fred Jung, the leadership team of Sprouts, and many of the employees that work in the location everyday with the commitment of delivering their customers the freshest produce. Attendees had the opportunity to witness the significant capital investment that went into the building, as well as explore the ripening rooms for bananas and avocados, among other highlights. Perhaps the most heartwarming aspect of the event was the generous donation of $65,000 to Fullerton schools by the Sprouts Charitable Foundation. Commonwealth Elementary received $15,000, while Maple Elementary received a substantial $50,000 donation, with a particular focus on cafeteria composting.
At the helm of Sprouts Farmers Market is CEO Jack Sinclair, who took the reins in 2019. With a pleasant Scottish brogue and a pedigree including stints at Walmart and 99 Cent Stores, little did he know that his tenure would coincide with the COVID-19 pandemic, which presented unique challenges to the industry. Despite these challenges, Sinclair had a clear vision for the company. Sinclair's objectives included targeting Sprouts' customer base, described as “health enthusiasts and innovation seekers”. While the U.S. grocery industry is vast, with an estimated worth of $1.2 trillion, Sprouts has dedicated itself to focusing on a $200 billion slice of that business. To achieve this, Sinclair also aimed to enhance the supply chain, a goal that has been realized with distribution centers now in Aurora, Colorado, Orlando, Florida, and Fullerton, California. Additionally, he envisioned new stores with a smaller footprint and aims to grow the company's approximately 402 stores nationally by 10% per year, primarily in the Sun Belt region.
Sprouts' presence in Fullerton is not just about bricks and mortar; it's about creating opportunities and giving back to the community. The 337,000 square-foot logistics building, of which Sprouts occupies roughly 250,000 square feet, has added approximately 190 full time jobs to the community. But the impact extends beyond employment. Through the Sprouts Healthy Communities Foundation, the company is making substantial donations to local schools, supporting nutrition, education, composting, and even school gardens where students learn firsthand how produce is grown and delivered to stores.
Standout features of the Sprouts distribution center are myriad beginning with the presence of ripening rooms within the cold storage area. These rooms allow for the precise control of temperature and humidity, ensuring that avocados and bananas reach stores at the perfect level of ripeness. Aligned with Sprouts' commitment to environmental sustainability - the facility is designed for future solar panel implementation and LEED certification, emphasizing Sprouts' commitment to green building practices. In an effort to encourage environmental responsibility among its employees, the center provides 11 electric vehicle charging stations, with plans for future expansion. Additionally, an electric vehicle terminal truck assists with daily yard operations.
Sprouts Farmers Market's relocation to Fullerton, California, represents not only a strategic business move but also a commitment to its customers, employees, and the local community. With its dedication to fresh produce, environmental sustainability, and community engagement, Sprouts sets an example for businesses looking to make a positive impact on both a local and global scale. As we witness the fruits of their labor ripening in the heart of Southern California, it's clear that Sprouts Farmers Market is not just a grocery store but a genuine community partner.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
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