Copyright Business Insider
There's a health-focused grocery chain that's opening dozens of new locations — and it's not Whole Foods. Phoenix-based Sprouts Farmers Market plans to open 37 new stores by the end of the year. The chain focuses on natural, organic, and other good-for-you groceries in a store format that roughly mimics the appearance of a local farmers market. There's no shortage of health-focused grocers these days. Besides Sprouts and Amazon-owned Whole Foods, there are also delivery services like Thrive Market — and, in all likelihood, a local co-op or health-food store in your area. Sprouts stands out, though, for its rapid growth. While its store network is a little smaller than Whole Foods' — 464 for Sprouts versus just over 500 for Whole Foods — Sprouts seems to have its sights set on becoming a national retailer capable of competing with the Austin-based chain. Today, most Sprouts stores are located in the Western and Southern US. But the chain is planning to break into new states and regions where it doesn't have a presence, particularly in the Midwest and Northeast, CEO Jack Sinclair said on the company's third-quarter earnings call on Wednesday. "We're going to get to a lot more states over the next year or two," Sinclair said. Sprouts' comparable sales growth slowed during the third quarter as some consumers pulled back spending, the company said this week. Still, analysts at UBS wrote on Thursday that Sprouts has ways to lure in customers as the economy worsens, such as a growing line of private-label products. I went to Sprouts to see what shopping there is like — and what it brings to the table as it expands.
