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Sprouts names Jack Sinclair as new CEO

Interim Co-CEO and CFO Brad Lukow to leave company

Russell Redman

June 21, 2019

4 Min Read
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Photos: Sprouts Farmers Market

Jack_Sinclair_Sprouts.pngSprouts Farmers Market has named former Walmart grocery executive Jack Sinclair (left) as chief executive officer, filling a leadership vacancy arising from the exit of its previous CEO and the medical leave of its chief operating officer.

With the move, announced late Thursday, Sprouts said that Brad Lukow, interim co-CEO and chief financial officer, has resigned from the company “to pursue other opportunities.” The Phoenix-based specialty grocer’s board has appointed Lawrence “Chip” Molloy as interim CFO until a permanent successor is named.

Brad_Lukow_Sprouts_CFO.pngIn early May, Lukow (left) reported during Sprouts’ first-quarter earnings call that President and COO Jim Nielsen was taking a medical leave of absence. Nielsen and Lukow had been serving as interim co-CEOs since the Dec. 30 departure of CEO Amin Maredia, who left the company to pursue other interests.

The appointments of Sinclair and Molloy go into effect on Monday, Sprouts said. Sinclair also will join the company’s board.

“We are extremely excited to have Jack Sinclair as our new chief executive officer following a thorough search and selection process by the board of directors,” said Sprouts Chairman Joseph Fortunato. “Jack is a proven chief executive officer with an outstanding track record in grocery and retail merchandising. On behalf of the board, we look forward to working with Jack as he leads Sprouts forward to continued success.”

Related:Sprouts sticking to its expansion game plan

Most recently, Sinclair was CEO of 99 Cents Only Stores. He joined the 350-store discount chain in July 2015 and was promoted to CEO in February 2018. From 2007 to 2015, Sinclair served as executive vice president of Walmart’s U.S. grocery division. Sprouts said he spurred growth at the retail giant’s grocery business, which spans more than 4,000 stores, through a focus on local assortments and fresh foods.

Before joining Walmart, Sinclair spent 14 years at Safeway PLC in London, where he oversaw operations, merchandising and marketing for more than 450 Safeway supermarkets and convenience stores in the United Kingdom. He also has served on the board of The Hain Celestial Group, a manufacturer and supplier of organic and natural products, since 2017.

“I am humbled and extremely privileged to be appointed chief executive officer of Sprouts Farmers Market,” Sinclair stated. “Sprouts is a company with a higher purpose — to empower every person to eat healthier and live a better life — and the commitment of its 30,000 team members to drive lasting change in the communities they serve truly resonates with me. I look forward to working with Sprouts’ board of directors, leadership team and all Sprouts team members to continue furthering that purpose.”

Related:Sprouts turns in double-digit sales gain for Q1

According to Jefferies analyst Christopher Mandeville, Sinclair brings a skill set that’s well-matched to those of Sprouts’ remaining C-suite.

“His  lengthy experience within discount and grocery should bring significant knowledge to the table, especially in small-format/fresh, as 99 Cents is as produce-focused as you'll get in the dollar channel (and comp growth was quite impressive during his time there), while Walmart’s Neighborhood Market format realized considerable unit growth during his final years in charge of all U.S. grocery,” Mandeville wrote in a research note released late Thursday. “Paired with his exposure to natural and organic CPG at Hain, Sinclair's background could prove highly complementary to President and COO Jim Nielsen, an individual we'd coin as the key man to operations, assuming he returns to the company as planned post-medical leave.”

A seasoned retail CFO, Molloy has been a Sprouts board member since 2013. He served as CFO of Under Armour from 2016 to 2017, CFO of PetSmart from 2007 to 2013, and CFO of retail for Circuit City Stores from 2006 to 2007. Molloy was interim CEO of Torrid LLC during 2018.

“Chip has chaired our audit committee for several years, and his deep knowledge of Sprouts’ business, strategy and financial operations and experience with the investment community make him best-suited to lead Sprouts’ financial affairs while we conduct our search for a permanent chief financial officer,” Fortunato commented.

Sprouts also announced that Shon Boney is stepping down from the board. Boney is a co-founder of Sprouts, which opened its first store in 2002. He has been a board member since 2002 and served as CFO from 2002 to 2005, CEO from 2005 to 2012, and chairman from 2012 to 2013.

“Having Shon on our board has been instrumental as Sprouts has undergone rapid expansion, and we thank him for his service and contribution all these years,” said Fortunato.

The leadership flux comes as Sprouts pursues an aggressive growth strategy. In 2018, the fresh, natural and organic grocer opened 30 stores, and this year it aims to open another 28. The company currently operates more than 320 stores in 19 states, and it expects to have 340 stores in 22 states by the end of this year.

Sprouts entered three new states — Pennsylvania, Washington and South Carolina — and passed the 300-store mark last year. In 2019, the chain will make its debut in another three states: Louisiana, New Jersey and Virginia.

“2019 represents the first year where more than half of our new stores will be opened up in new markets,” Lukow said in mid-May at the BMO Farm to Market Conference in Manhattan.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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