Sprouts’ sharp e-commerce growth was unexpected, CEO says

Core Insights - Sprouts Farmers Market has successfully maintained e-commerce sales at 15% of total sales, a significant increase from 2% prior to the COVID-19 pandemic [2][3] - The company has focused on expanding its footprint and establishing a self-distribution network, alongside launching its first loyalty program [3][8] E-commerce Growth - E-commerce sales for Sprouts have stabilized at 15%, with fresh produce maintaining the same percentage in both digital and in-store sales [2][3] - The growth in e-commerce was not initially planned but became a necessity during the pandemic [2] Store Expansion Strategy - Sprouts plans to open 35 new stores by the end of 2025, with an increased target of 40 new locations next year [6] - The company focuses on small store formats, which have proven to be more productive and appealing to customers [7] Distribution and Product Focus - Fresh produce constitutes 20% of Sprouts' total sales, with organic fresh produce making up 55% to 60% of that segment [4] - The company is developing distribution centers within a 250-mile radius of new store locations to support its produce-centric model [5] Customer Engagement - The launch of Sprouts' first loyalty program is a key initiative aimed at enhancing customer retention and engagement [8]