Sprouts, an Arizona-based grocery store chain, will move into this location on Sepulveda Boulevard sometime in March. (Photo by Gary McCarthy)
Story Created:
Feb 3, 2010 at 3:48 PM PST
Story Updated:
Feb 3, 2010 at 4:12 PM PST
The Arizona-based Sprouts Farmers Market is set to move into the former site of Circuit City at 5660 Sepulveda Blvd., with plans to open in late March — just under a year after the electronics megastore went out of business.
The grocery store will encompass the entire 32,000-square-foot lot Circuit City left behind, according to an e-mail from a store representative, and will be one of six Sprouts locations to open this year in California.
Similar in nature to chains like Whole Foods and Trader Joe’s, Sprouts representatives say the store purchases its fruits and vegetables from local growers when possible.
“I believe as the economy of America evolves, that Sprouts is giving Culver City another destination store with a wide variety of farm fresh produce and other healthy type foods,” said Chamber of Commerce President Steve Rose.
In addition to its merchandise, there is another characteristic of Sprouts that sets it apart from previous tenant: it will generate significantly less revenue for the city than Circuit City.
Rose said while Circuit City generated approximately $300,000 a year in sales tax dollars for the city, Sprouts will only make around $50,000.
This is mainly due to the fact that most foods are not taxable.
“It’s quite a difference,” he said.
Rose added that he views Sprouts more as a long-term investment than an immediate sales tax revenue generator.
“I believe if you look at a five- or ten-year horizon, that you’re going to find Sprouts to be a good investment for the city,” he said.
Although Circuit City was one of the city’s top sales tax earners, the category of “general consumer goods,” which includes groceries, are collectively the highest revenue earners in the city.
They brought in about $1.8 million in 2009, according to a report on sales tax revenue issued by the city’s finance department.
For city councilman and Redevelopment Agency Chairman Mehaul O’Leary, one of the selling points for him was that the city would not lose any money bringing in a store like Sprouts, despite a dip in tax revenues.
“We didn’t take a loss on the property itself, even though we’re not going to make as much money as we would have, should Circuit City have stayed,” he told The Wave.
Some city officials have said that they would like to see more businesses that could reduce Culver residents’ need to drive out of town for necessities.
O’Leary said Sprouts will help do that by creating more of a “neighborhood feel.”
That’s also one of the ways Rose says he sees the grocery store’s opening benefiting local residents.
“I look forward to having Sprouts in Culver City as another opportunity where Culver City residents close by can shop without traveling a long way,” he said.
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