New Sprouts Loyalty Program Coming to Two Test Markets

During its fourth quarter earnings call last month, Sprouts Farmers Market unveiled plans for its forthcoming robust loyalty program, slated to be operational by mid-2024. Company executives disclosed at an investor conference that the program, set to be tested this year, aims to set itself apart in the grocery landscape. Sprouts’ loyalty points-based-program will deliver a distinctive experience tailored to their customers, focusing on health-conscious and selective shoppers. The company plans to personalize the program to align with its shopper niche, differentiating it from conventional loyalty offerings and is investing nearly 15 million towards its innovation and technology support.  

Sprouts currently possesses first-party data on only around 11% of its customer base, which is significantly lower than the “north of 80%” held by many competitors with established loyalty programs, Sprouts’ CEO, Jack Sinclair, said. Sinclair emphasized the importance of increasing participation in the loyalty program to bolster access to first-party information crucial for future operations. Management’s strategy revolves around leveraging the loyalty program to enhance spending and wallet share among their core customer groups while refining online marketing initiatives. Additionally, data gleaned from customer purchasing behaviors informs product assortment enhancements, with over 7,100 new products introduced in 2023, including 400 new Sprouts brand private label items. 

Curtis Valentine, Sprouts’ CFO, anticipates the loyalty program will bridge the gap between the current 11% and the industry standard of 80% over the next few years, once fully implemented. Testing for the program is scheduled to commence this summer, with rollout planned for the following year, starting in two markets before expanding further.