A Sprouts Farmers Market store in Los Angeles. (Wikimedia Commons)

A Sprouts Farmers Market store in Los Angeles. (Wikimedia Commons)

New health food grocer to open near Mill Creek sports arena

MILL CREEK — A fast-growing healthy foods grocer is coming to Mill Creek.

Sprouts Farmers Market plans to move into Gateway Shopping Center, next to indoor recreation company Arena Sports’ new complex. City officials hope the two businesses will draw new shoppers and visitors to Mill Creek.

The Phoenix-based grocer has rapidly spread from coast-to-coast in recent years. With plans to open 32 new stores this year, its expansion pace is not slowing down. So far, all of its more than 260 stores are located in the South, Southwest or California. The Mill Creek location, which is expected to open in 2018, will be among its first stores in the country’s northern states.

Sprouts has filed with the city for a permit to make tenant improvements. It is taking over about half of a former Safeway location, which has sat vacant for nearly two years. Gateway Shopping Center’s owner, Kimco Realty, lists Sprouts as a tenant.

However, the grocer declined to comment on its plans in the area.

Given brick-and-mortar retail’s struggles across the country, Mill Creek city leaders are working on a plan to attract more businesses catering to people with active lifestyles, said Rebecca Polizzotto, Mill Creek’s city manager.

The addition of Arena Sports, which is slated to open this fall, and Sprouts could provide a core for the city to build around. “You can drop your kids off at Arena Sports to go rock climbing or some event, and go grocery shopping,” Polizzotto said.

The city is considering connecting the parking lots between the two adjacent sites to make that even easier to do.

In recruiting businesses for the area, “we focus a lot on the recreation component and special retail niches that add to ambiance of community and support long-term tourism” growth, she said.

An outdoor recreation area, Mill Creek Sports Park, is a short walk from Gateway Shopping Center.

The city is a good fit with Sprouts’ target markets, as described by its chief executive, Bradley Lukow, in public comments.

“We target middle America, middle income to slightly higher (income)” shoppers, he said at the DeutscheBank Global Consumer Conference on June 15.

Lower prices on high-quality produce are a key customer draw for Sprouts. “We are absolutely committed to ensuring we’re maintaining our price positioning in the market,” Lukow said. The company does “weekly price checks market-by-market” on all produce items. “And we are 20 percent to 25 percent better-priced than our nearest competitor,” he said.

Sprouts’ stores are focused in densely populated suburban markets. The company’s model store, as described in a presentation to investors in May, is a compact layout across 30,000 square feet — about half the size of a typical national chain grocery store — with low displays to create an open feel. The key draw — lower priced produce — is at the back, ensuring customers see plenty of other products that are more profitable for the company.

Arranging a store to improve earnings is a staple of the grocery industry, where margins are thin and costs are high.

Sprouts also has been collaborating with Amazon Prime in a handful of test stores to allow customers to order fresh food and other groceries online. The company has not said if it plans to expand that offering. In June, Amazon acquired Whole Foods as it seeks to expand its presence in the grocery business.

A buyout might be in Sprouts’ future, as well. The company reportedly was in merger talks in March with Albertsons.

David Livingston, a grocery industry analyst and owner of DJL Research, is skeptical about the company’s expansion, which appears to be fueled by debt rather than cash from profits.

“Their sales per unit really aren’t that successful,” especially when compared next to Whole Foods or Trader Joe’s, the only two healthy foods national chains, Livingston said.

“If you’re using debt to expand, I’m very cautious,” he said.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Water drips from an Alaska Airlines Boeing 737 after it received a water salute while becoming the first scheduled 737 arrival Thursday, Feb. 17, 2022, at Paine Field Airport in Everett, Washington. (Ryan Berry / The Herald)
Boeing and Airbus forecast strong demand for their jets

Boeing and Airbus project more than 40,000 new jets are needed.

Hundreds wait in line to order after the grand opening of Dick’s Drive-In’s new location in Everett on Thursday, June 12, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Dick’s Drive-In throws a party for opening day in Everett

More than 150 people showed up to celebrate the grand opening for the newest Dick’s in Snohomish County.

Patrick Russell, left, Jill Russell and their son Jackson Russell of Lake Stevens enjoy Dick’s burgers on their way home from Seattle on Friday, Sept. 22, 2023 in Edmonds, Washington. The family said the announcement of the Dick’s location in Everett “is amazing” and they will be stopping by whenever it opens in 2025. (Olivia Vanni / The Herald)
Dick’s Drive-In announces details for Thursday’s grand opening in Everett

Dick’s will celebrate its second Snohomish County location with four days of festivities.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.