Despite Greater Grocer Concentration, Sprouts Farmers Market Is One To Watch After Blockbuster 2024
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.
- Sprouts — mostly concentrated across states like California, Florida, and Arizona — has expanded to over 442 locations, maintaining a plan to increase its footprint by 10% annually.
- Its new openings have supported strong momentum, with its Q3 2024 revenue rising 13.5% to $1.95B — and net income improving more than 40% year-over-year to $92M.
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.
