Sprouts underestimated the impact of softening consumers

Core Insights - Sprouts Farmers Market experienced a significant decline in comparable store sales growth in Q3, attributed to macro-economic pressures and a softening consumer base [3][8] - The company reported a 5.9% year-over-year growth in comparable store sales, which is nearly half the growth rate from the previous quarter, marking the second consecutive quarter of deceleration [8] Store Expansion Plans - Sprouts plans to open 37 new stores in 2025, an increase from the original goal of 35, with a total of 464 stores currently in operation after opening nine new stores in Q3 [5] - The company aims for even more store openings in 2026, with a robust pipeline of 140 approved locations, and is on track to achieve a 10% unit growth by 2027 [6] Distribution Network Development - Sprouts made progress in establishing its own distribution network, completing the transition to self-distribution for fresh meat and seafood at four distribution centers in October [7] - The company anticipates completing this transition by Q2 2026 with the opening of a new distribution center in Northern California [7] Loyalty Program Rollout - The company has completed the rollout of its loyalty program, which is expected to support its growth initiatives despite the current challenges in consumer spending [8]