After opening a net 23 new stores in 2023 for a total of over 400 locations, Sprouts Farmers Market plans to open 35 new locations this year, all in its new smaller-store format. Sprouts committed to shrinking its stores’ square footage by 23% as a way to reduce environmental impact in June 2023.
Sprouts executives revealed the retailer’s growth plans while discussing its strong Q4 and FY 2023 results. The wellness-focused supermarket boosted 2023’s net sales 7% compared to 2022, reaching $6.8 billion. Comp store sales also grew by 3.4%. Q4 net sales of $1.7 billion were 8% higher than the same period the previous year, and Q4 comp store sales climbed 3.3%.
In addition to adding stores, Sprouts is seeking to grow both its assortment and its customer base. “Looking ahead, we will continue launching new Sprouts brand products, expand our seasonal in and out programs, leverage our innovation centers in store and engage more sampling to drive trial and basket,” said Sprouts CEO Jack Sinclair while discussing the results on an earnings call. “This focuses on our Sprouts brand, continuing to deliver growth ahead of company performance and provide customers with products they value and trust.”
Additionally, Sprouts is planning “the first iteration of our new loyalty program,” said Sinclair, testing the program beginning in summer 2024 as it prepares for a full launch in 2025. He also hinted that the data Sprouts gathers from the program could be shared with suppliers and vendors — perhaps, eventually, as part of a retail media network.
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“The [loyalty] program is designed to grow our identifiable customer base and gather valuable data on their preferences, enabling us to personalize the experience to their specific needs,” said Sinclair. “We’re also optimistic about how the data will potentially unlock value across our business by deepening our insights on customers, aiding Sprouts’ brands product development, improving customer acquisition and providing a new asset to utilize with our vendors to grow our mutual business.”
