Company Background
Where is Sprouts Farmers Market headquartered?
Phoenix, Arizona
What major event in 2020 changed grocery shopping habits?
The COVID-19 pandemic
What kind of customer is Sprouts mainly trying to attract?
Health-conscious shoppers
What product category makes up a large share of Sprouts’s sales?
Fresh produce
What major challenge comes with Sprouts’s plan to open new stores?
Finding good real estate and staff for each location
Who is the CEO of Sprouts?
Jack Sinclair
What was the largest U.S. food retailer in 2022?
Walmart
How does Sprouts position itself compared to traditional supermarkets?
As a specialty or secondary grocery store
What is the name of Sprouts’s own brand of products?
Sprouts Brand
What problem does Sprouts face in newer markets?
Many customers don’t know the brand yet
What year was Sprouts founded?
2002
What type of food spending increased during the pandemic—food at home or food away from home?
Food at home
What store feature did Sinclair make smaller to improve profits?
The store format or size
What is the name of the in-store display that features new innovative products?
Innovation Center
What new tool is Sprouts creating to collect customer data?
A loyalty program
What kind of products does Sprouts focus on selling?
Fresh, healthy, natural, and organic foods
What’s one reason grocery stores have low profit margins?
High operating costs and competition on price
What promotions did Sinclair stop using because it hurt profits?
Aggressive discounts and coupons
How does Sprouts source much of its produce?
Directly from local growers near its distribution centers
Why is it harder for Sprouts to stand out now compared to before?
Because other grocery stores now sell more natural and organic foods
Around how many stores does Sprouts operate in the U.S.?
About 400 stores
What type of foods have become more popular across all grocery stores?
Natural, organic, and healthy foods
What is the main goal of Sprouts’s strategy?
To grow profitably by focusing on healthy, unique products
How does Sprouts find new, unique items to sell?
Through “foragers” who search for new and local brands
What big question does leadership face about expansion?
Whether to grow in existing markets or new ones