Sprouts Boosts SKU Counts, Shelf Heights

PHOENIX — Sprouts Farmers Market is expanding its assortment in grocery by raising gondola shelf heights, according to a report published Sunday by Karen Short, a New York-based analyst at Deutsche Bank.

Short’s report, based on interviews with management and a store tour in California, said Spouts has increased grocery SKUs from 4,000 to 5,200 “to make Sprouts a more complete grocery shop.”

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Around 50% of Sprouts stores have already been outfitted with higher shelves. The company plans to install higher gondolas at all new stores, as well as in 10-15 planned remodels and as many as 10 additional units in 2014. Short said stores with the additional grocery items have maintained their open feel and sightlines by locating the higher gondolas to the sides of the store. The company is realizing an unspecified comparable sales lift from the initiative.

Read more: Underwriters to Buy Sprouts Shares

Sprouts store remodels also include the introduction of Boar’s Head products in deli departments, and the installation of additional freezer space, Short said.

Remodeled stores around the Phoenix market saw 2% to 4% comparable store sales lifts in 2013.

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