they feel matter
most to customers.
And they spend
a lot of time and
being average at
everything else, and
not overinvesting in
For Sprouts, it’s
very much the same.
It all starts with
brands and private
label, fresh product,
and attribute-based products. The second element we’re becoming more
maniacal about is experience in the store. We’ve always been very good at
customer service. Where we are spending a lot of time today is simplifying the
shopping experience in a way where customers can have more fun shopping.
We don’t want our customers to come with a shopping list. We want them
to be like a 6-year-old in a candy store, experiencing it with their eyes and
buying with their eyes. In the end, the experience with food is happening
with eyes and taste, so we’re spending a lot of time thinking about how we
can merchandise particular areas of the stores even better today because
those areas weren’t big businesses for us 10 years ago.
You spoke some time ago about a goal to reach annual sales volumes
of $20 million per store. Where are you along that journey?
That’s a journey we’re continuing. Our next evolution in that is really building
out our capabilities. We’ve seen a lot of deflation over the last couple of
years and as we continue to evolve merchandising in deli, private label, meat
and seafood, we’ve also seen strong new store openings—2016 and 2017
were our strongest vintages out there, and a lot of that has to do with our
continuing to evolve our business. We’re driving significant step changes in
these areas that will help us continue toward that goal.
What about further expansion?
Today, we’re everywhere from Northern California, across the middle of the
country, to Florida and the Carolinas, and now we’re into the mid-Atlantic.
Philly and Washington, D.C., are coming up. What’s nice about the growth
strategy is it aligns closely with population growth, income growth and
education growth. It’s what I call the smiley face of the U.S. We’ll continue to
go where demand for healthy food is high, and where competition is average.
If we talked again in five years, what would you tell me about Sprouts?
What I’d tell you is it’s a fun, visual, di;erentiated in-store experience
with a fantastic out-of-store experience, which gives me knowledge and
information I need to eat healthier and makes it frictionless, whether I go to
the store or have it delivered to my house or o;ce or anywhere else I want
to be. Our next journey for Sprouts is continuing to push health experiences
in and out of stores and make a grocery shopping fun and enjoyable.
partners,” says Gensch. “Our grocery delivery partnership with Instacart will reach all
of our major markets by the end of the year,
and is another way for us to conveniently join
our guests along their healthy living journey.
Through innovation and di;erentiation, we’ll
continue to make healthy living a;ordable
In-House Investments Pinpointing quality, safety and food production as the most in;uential con- sumer drivers, Maredia says Sprouts’ ;,;;; house-brand products—more than half of which are non-GMO or organic—areproven tra;cdrivers“that
our customers trust to meet strict quality
standards while delivering exceptional value
and unique flavor pro;iles.” The retailer’s
responsible sourcing methods
re;ect its commitment to keep
“shoppers’ needs in mind”—
hence the many clearly marked
attribute-based products and visible ;oor sta; on hand to answer
shoppers’ questions or help them
;nd the right product to ;t their
healthy living journey.
When asked how Sprouts’
core shopper expectations are
changing, and how the company
is evolving to meet them, Maredia points
to expanded conveniences and heightened
focus on interacting with patrons outside the
store: “Being a trusted healthy living resource
is an important responsibility and opportunity for Sprouts, so we continue to invest in
our team so that they can o;er the best service possible for our guests and their individual needs.”
‘Love’ is one of the
most commonly used
words we hear from
our customers on social
media.” —Amin Maredia, CEO
engage shoppers at
store in Tampa, Fla.