Dive Brief:
- Sprouts Farmers Market announced Tuesday that Jack Sinclair, who has served as the specialty grocer’s CEO since 2019, will step down from the top role on Jan. 4 and become the chain’s executive chairman.
- Nick Konat, Sprouts’ president and chief operating officer, will become CEO and join the board of directors at that time. Konat joined Sprouts in 2022 and was previously a grocery executive with Target.
- The CEO succession comes as Sprouts continues to expand its presence in markets including the Northeast and proceeds with new initiatives, such as its loyalty program.
Dive Insight:
Sinclair said that he and Sprouts’ board of directors settled on Konat as his successor after devoting “significant time and consideration” to selecting a new leader.
“I’ve worked closely with Nick since he joined Sprouts in 2022 and seen firsthand his talent, drive and strong dedication to our people,” Sinclair said in a statement. “He played a central role in shaping and executing our strategy, and I have tremendous confidence in his ability to lead the company to new heights.”
Joe Fortunato, chairman of Sprouts’ board, indicated that the company focused on crafting a succession plan that would allow Sinclair to help his replacement get up to speed.
“The Board believes that Nick’s experience, along with his deep knowledge of our business and Sprouts’ unique culture and market position, make him the ideal leader for the next phase of the company’s journey. … This transition enables Jack’s ongoing involvement while allowing Nick’s significant depth and breadth of experience to shine even brighter,” Fortunato said in a statement.
Fortunato will become Sprouts’ lead independent director as part of the transition.
In his current position, Konat is responsible for Sprouts’ operations, marketing, merchandising, supply chain and innovation activities. Before joining the company in February 2022, Konat served in various roles for Petco, including chief merchandising officer. Earlier, he worked in multiple positions in the food and fashion categories at Target.
Sinclair is getting ready to hand off his duties to Konat after leading the Arizona-based retailer through a period of substantial growth.
Sprouts currently runs over 480 stores in 25 states, up from 320 locations in 20 states when Sinclair took over seven years ago. Sprouts’ annual revenue is also up sharply, growing from $5.6 billion in fiscal 2019 to $8.8 billion during the grocer’s most recent fiscal year, which concluded in December.
