Sprouts posts a ‘remarkable’ 2024Sprouts posts a ‘remarkable’ 2024

Phoenix-based Sprouts Farmers Market reported what its CEO termed “remarkable” results late Thursday for its fourth quarter and full fiscal year.

Biggest news for grocery?

The 440-unit grocer’s differentiated, health-focused approach appears to be resonating with consumers who are increasingly focused on wellness, CEO Jack Sinclair said. Trend-driven product innovation is a key area of focus for Sprouts, as well as launching a revamped loyalty program.

“I know this sounds a little bit strange, but almost whatever happens—our customer base is so interested in food and what they eat,” Sinclair said, according to a transcript from financial services site AlphaSense. “Vegans will stay vegans whatever happens to the economy. And that whole challenge of what people buy and how they want to eat, our customers are more discerning than most. And I think that shields us a little bit from the vagaries of ups and downs and what other people might or might not do.”

Sprouts is also expanding its self-distribution program to include meat and seafood, as well as produce, throughout 2025.

Sprouts fourth quarter (ended Dec. 29) by the numbers:

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Stats for the full year:

Product innovation

Sprouts introduced about 7,100 items this year, for a total of nearly 20,000 SKUs systemwide. Innovation is providing a “treasure hunt” experience for shoppers that is helping boost sales and traffic, executives said.

Tariff impact?

There remains some uncertainty for Sprouts on the potential impact of tariffs planned by the Trump Administration. Most of the food the retailer sells comes from the United States, but there could be some impact to fresh produce from Central and South America, Sinclair said. “Exactly what’s going to happen to tariffs,” he added, “we’ve got no idea. And that’s something that we will watch and we’re ready to move with it.”

There’s also the potential issue of steel tariffs, and how they might affect new store construction.

New store pipeline

Sprouts said it intends to open at least 35 new stores in 2025, still shy of the retailer’s previously stated goal of 10% annual unit growth. Sprouts officials said all of the upcoming new locations will be in the retailer’s existing markets, as it works to build density.

For the coming years, though, Sprouts is eyeing expansion into the Midwest and Northeast. It has previously said it sees potential for up to 1,200 stores around the country.

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“There are still some constraints,” Sinclair said. “We’re kind of wondering exactly what’s going to happen with developers and what’s going to happen with interest rates and what’s going to happen with steel tariffs, those kinds of things … I’m confident we’ll start to build more in the years ahead.”

In their own words: “More engaged than ever before”

“Our target customers are now more engaged than ever before in the role food plays in their health, and our ability to support them is a key reason why Sprouts is succeeding. They are discerning shoppers who scrutinize every ingredient, seek wellness benefits, explore culinary trends, and aspire to more sustainable and premium choices, while looking to Sprouts as a trusted partner on their journey.” —Jack Sinclair, Sprouts CEO