Natural chain to take root in springs

Sunflower Farmers Market, a natural grocery chain started by the founders of Wild Oats Markets, plans to open its first Colorado Springs store in a former Longs Drug Store at 1730 Dublin Blvd.

Boulder-based Sunflower expects to open in February or March with between 100 and 120 employees. The fast-growing company eventually plans one or two additional locations in Colorado Springs, said Mike Gilliland, the company's founder and chief executive. The company is targeting Colorado for much of its expansion in the next 18 months, opening four more stores along the Front Range by year's end to go with the five it already operates.

"When I was at Wild Oats, Colorado Springs was always a great market for us. Our strategy of offering natural foods at affordable prices fits well with the more priceconscious consumer in Colorado Springs," Gilliland said Tuesday. "There are a lot of opportunities in Colorado. We are 20 to 30 percent cheaper, smaller and easier to shop, and we are finding that our format is doing especially well in this economic climate."

Sunflower is leasing the 28,000-square-foot former Longs store for 10 years, said Rich Walker of First Properties Inc., which represented Longs in the transaction. The store was one of three closed last year by Walnut Creek, Calif.-based Longs when the company pulled out of Colorado and three other states to stem mounting losses. Two other Springs stores were sold to Illinois-based Walgreen Co.

Gilliland started Sunflower six years ago with a store in Albuquerque, and has expanded to 16 stores in Arizona, Colorado, Nevada, New Mexico and Utah. Sunflower secured a $30 million investment last year from La Jolla, Calif.-based PCG Capital Partners to finance an expansion that will include 19 stores by the end of 2009. The expansion will help the company double its sales from an estimated $200 million this year to $400 million in 2009.

Gilliland founded Wild Oats in 1987 and expanded the Boulder-based chain to 120 stores and nearly $1 billion in sales before stepping down as chief executive in 2001. Natural grocery giant Whole Foods Markets Inc. acquired Wild Oats last year.

Sunflower's arrival comes as other natural foods grocers are expanding in the Springs. Vitamin Cottage Natural Grocers moved and expanded its northern Colorado Springs store last month to a former Media Play outlet at 7690 N. Academy Blvd. and opened a southern Colorado Springs store last year at 1825 S. Nevada Ave. Whole Foods Markets Inc. converted a former Wild Oats store on Powers Boulevard last month to become its second local store.