Sprouts continues to expand rapidly

Phoenix-based organic grocery store Sprouts has grown steadily in the past 15 years, expanding geographically, financially, and philanthropically.

Sprouts first started in Chandler in 2002, and since then, they have established 36 additional stores in the state – only Texas and California have more locations with 42 and 108, respectively. In fact, according to spokesperson Kalia Pang, “[On] August 22, we’re opening four new stores, which marks a record number of same-day openings for us. One of the stores is located in Phoenix at a new development on 7th Avenue and Osborn.” The newest Phoenix location will donate all unsold, edible food to St. Mary’s Food Bank through its Food Rescue program.

Pang notes that the company continues to expand across the nation, stating, “We recently surpassed 300 stores from coast to coast. We’re entering the new market of Washington state this month – our third new market this year. Our Philadelphia store opening in September will mark the fourth new market for us this year.”

Last year, the supermarket chain’s net sales jumped by 15 percent to $4.7 billion and same-store sales rose just under three percent. Sprouts also posted a 27 percent year-over-year increase in net income, bringing that figure up to $158 million.

This growth has not slowed in 2018, either. Although the grocery store’s stock slid slightly in May, an impressive second quarter earnings call caused Sprouts’ share value to jump 12 percent. Indeed, year-over-year Q2 sales rose 12 percent, and net income climbed two percent.

In addition, Sprouts has been developing partnerships to ensure its ability to compete against other major supermarkets. CEO Amin Maredia explained in an earnings call, “On the convenience front, we have expanded our home delivery service through our partnership with Instacart. And today, we are in 190 stores with more coming on board this year, bringing convenience to most of our major markets.”

Maredia also reported that because of the Tax Cuts and Jobs Act, Sprouts was able to invest an additional $10 million into incremental wages and benefits for employees. Not only does this establish elite customer service – which posted the highest score in the company’s history last year – but it also helps to retain employees.

Sprouts has expanded rapidly since its founding in 2002. Not only has the company seen growth in locations and sales, but it has also progressed philanthropically, helping to give back to the community and its employees.

Ben Norman

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