BusinessJan 4, 2025
Despite Greater Grocer Concentration, Sprouts Farmers Market Is One To Watch After Blockbuster 2024
Retail Resilience
Noah Weidner
Discover
Large domestic retailers like Walmart and Costco are eating up a greater share of Americans’ spending, forcing major US stores to shutter. But bucking the trend, the health and organic-focused Sprouts Farmers Market is one of a few regional grocers holding up in America’s hurricane of retail concentration and closures. In fact, it handily outperformed its competition last year — and could do it again this year.
What’s growing at Sprouts? Ignited by the company’s fast-growing earnings and impressive showing, Sprouts rose over 160% last year — and it’s up 618% over the past five years. Its generational performance has helped it appreciate into one of the largest components in the growth-flavored Russell 2000, with its market cap eclipsing $13B. That makes it a uniquely large enterprise in the star-studded small-cap index. With store visits rising and a pilot of its new loyalty program showing promise, the grocer is one to watch as it graduates into the Russell 1000 later this year — with its aspirations potentially set even higher as growth continues.
