Based in Phoenix, Sprouts is one of the largest and fastest-growing food retailers in the United States, achieving $6.8 billion in sales in 2023. With a workforce of approximately 33,000 team members, the company operates over 430 stores across 24 states and continues to expand its footprint. Given its impressive growth and success, it’s no surprise that Sprouts was named Progressive Grocer’s 2024 Retailer of the Year.
“Sprouts Farmers Market is honored to receive Progressive Grocer’s Retailer of the Year award, a reflection of the dedicated people, culture and values that define our organization,” said Sprouts CEO Jack Sinclair. “This achievement would not be possible without the commitment of our more than 33,000 team members across the country, who work tirelessly to care for our customers and deliver an exceptional shopping experience every day. As we expand to new markets across the country, we will stay true to our roots of fresh produce and healthier products that inspire our customers to live and eat better and enrich the communities we serve.”
Drawing from its farm stand roots, Sprouts delivers a unique grocery experience with an open layout that places fresh produce at the center of the store. Designed to appeal to the wellness-focused shopper, Sprouts offers a carefully curated selection of better-for-you products, featuring attributes like organic, plant-based, and gluten-free options. While the healthy grocer primarily targets health-conscious consumers, it is also attracting traditional grocery shoppers.
In 2023, Sprouts introduced a smaller store format, reducing its footprint from approximately 30,000 square feet to around 23,000 square feet. These new stores, featuring innovation tables, self-checkouts, and revamped deli, frozen, and meat departments, are designed to help customers easily discover new and unique products. Last year, Sprouts opened 30 stores with this format, and so far in 2024, it has added 35 more locations, continuing its expansion into both new and existing markets, from California to Florida and the Mid-Atlantic. Since the start of the pandemic in 2020, Sprouts has opened more than 106 new stores.
In its most recent earnings report released in late October, Sprouts exceeded expectations. Third-quarter sales increased by 14% year-over-year, including an impressive 8.4% rise in same-store sales. Diluted earnings per share also grew by 40% compared to the prior year.
For fiscal 2024, Sprouts projects total sales growth of approximately 12%, with comparable store sales growth expected around 7%. Capital expenditures for the year are estimated between $205 million and $215 million. The retailer plans to open 33 new stores this year – slightly below its earlier guidance of 35 – after delaying two Florida openings to early 2025 due to disruptions from Hurricane Milton.
Sprouts’ strong financial performance in 2024, driven by growth in same-store sales, increased traffic, e-commerce, and merchandising innovation, underscores its momentum and significant potential in the competitive grocery sector moving forward.
“We are driving robust traffic growth and continue to execute at a very high level,” Sinclair said when the report came out. “We remain confident in our long-term growth potential…We acknowledge that we have some macro tailwinds at our back, but we are putting in the effort to establish a strong foundation that will enable the business to thrive in every environment,” Sinclair said. “Our third-quarter results and overall momentum continue to confirm our belief in our target customer-focused strategy. … Our results enable us to keep investing in our growth. We’re enthusiastic about the opportunities ahead, and our teams are rising to the challenge.”
The retailer projects total sales growth of approximately 12% and comparable store sales growth of around 7% for fiscal 2024. Sprouts expects full-year capital expenditures to range between $205 million and $215 million. While the company initially planned to open 35 new stores, it now anticipates 33 openings, as two Florida locations were delayed to the first quarter of 2025 due to disruptions caused by Hurricane Milton. Sprouts’ strong financial performance in 2024 – fueled by gains in same-store sales, increased traffic, e-commerce growth, and merchandising innovation – highlights its continued momentum and long-term potential in the grocery sector.
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