Sprouts’ own thing is success during Q1

Sprouts Farmers Market CEO Jack Sinclair made headlines in April when he had a low-key reaction about the Kroger, Albertsons merger.

“I think it is neutral to us. If they drop the price of Tide or Coca-Cola it is not going to affect us. We don’t sell that anyway,” Sinclair said, according to reporting from the Phoenix Business Journal. “Maybe I’m a little bit naive, but I don’t think it is going to bother us very much.”

Sinclair noted that U.S. food retail is a $1.2 trillion industry, and he wants Sprouts to get some $200 billion per year of that pie, ultimately.

“We are only at $6 billion at the moment, I only need a few crumbs at the table,” Sinclair said. “We paddle our own canoe, and we just do our own thing.”

Those crumbs must be jammed with protein, as Sprouts Farmers Market reported more growth during the grocer’s Q1 results call. Total net sales were $1.7 billion, which is a 6% increase compared to the first three months of 2022.

“We believe our long-term growth strategy is gaining traction and driving positive performance,” Jack Sinclair, chief executive officer of Sprouts Farmers Market, said during the call. “We are pleased with our first quarter.”

Comparable store sales growth during Q1 was 3.1%, while total sales growth was 6%. Sprouts opened eight stores and acquired two previously licensed stores during the first quarter of 2023. The fleet for the Phoenix, Ariz-based retailer is now at 395 stores in 23 states.

Related:Sprouts acquires two licensed stores in California

Store openings will crank up during the rest of the year, as Sprouts looks to cut the ribbon on a total of 30 news stores while closing 11. The grocer is predicting a net sales growth of 5-6% and comparable store sales growth of 2-3%. For second quarter, look for comparable store sales to rise about 3%.