Two retail developments are working their way through the City of Morgan Hill’s approval process that would add a Sprouts Farmers Market and a Tractor Supply Company store to the city’s list of local retail businesses, as part of the city’s efforts to keep residents buying local.
Tractor Supply Co. submitted plans in June 2025 for a 24,000-square-foot store at the southeast corner of Skipper Lane and Checkerspot Lane within the Evergreen Village Shopping Center. The plans were approved in November 2025, and city officials said they expect construction to begin later this year.
Regency Centers has recently applied to build a 55,984-square-foot shopping center at the southwest corner of Cochrane Road and De Paul Drive, to be called Poppy Ranch. The proposed centerpiece is a 23,299-square-foot Sprouts Farmers Market, a grocery chain known for fresh, natural and organic foods.
Regency Centers and Sprouts are targeting a fall 2027 opening.
Matt Mahood, the city’s economic development director, noted that both projects are still in the proposal stages and are not yet guaranteed to come to fruition, given the current “general economic uncertainty.”
“Development projects are never a sure thing until the ribbon is cut at the grand opening,” he said. “However, the City has made getting both of these projects through the review process a priority.”
Mahood emphasized the importance of seizing these development opportunities, noting that Morgan Hill’s population often falls short of the minimum thresholds many national chains require.
“In many cases, retailers we meet are already interested in Morgan Hill but have yet to identify a viable location or local franchisee. Other times, Morgan Hill’s population, just under 50,000, does not meet a retailer’s minimum threshold,” he said. “Even when including South San Jose, San Martin, Gilroy and Hollister as part of the trade area, we still fall slightly short of that metric.”
Retailers also consider local demand, informed by a “retail leakage report,” which measures how much local residents buy outside of Morgan Hill.
“If the leakage data or market projections do not support sufficient demand, or if a nearby store would create competition within their brand’s trade area, a retailer may postpone entering the Morgan Hill market,” Mahood said. “The City and the Economic Development team remain committed to building strong relationships with retail representatives and brokers to ensure Morgan Hill stays top of mind for future projects.”
