I went to Sprouts Farmers Market. The chain is growing fast, and that might be bad news for Whole Foods.

1 day ago 8

By Alex Bitter

New Follow authors and never miss a story!

Screen Shot 2020 09 04 at 6.22.07 PM

Follow Alex Bitter

Every time Alex publishes a story, you’ll get an alert straight to your inbox!

By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider’s Terms of Service and Privacy Policy.

Business Insider reporter Alex Bitter wears a khaki-colored coat while standing in front of the entrance to a Sprouts Farmers Market Store in Maryland.

Sprouts Farmers Market is plotting an expansion into the Midwest and Northeast. Alex Bitter/BI
  • Sprouts Farmers Market is on track to open dozens of locations in 2025.
  • The company is targeting the Midwest and Northeast for its long-term expansion.
  • I visited a Sprouts store to see what it's like.

There's a health-focused grocery chain that's opening dozens of new locations — and it's not Whole Foods.

Phoenix-based Sprouts Farmers Market plans to open 37 new stores by the end of the year. The chain focuses on natural, organic, and other good-for-you groceries in a store format that roughly mimics the appearance of a local farmers market.

There's no shortage of health-focused grocers these days. Besides Sprouts and Amazon-owned Whole Foods, there are also delivery services like Thrive Market — and, in all likelihood, a local co-op or health-food store in your area.

Sprouts stands out, though, for its rapid growth. While its store network is a little smaller than Whole Foods' — 464 for Sprouts versus just over 500 for Whole Foods — Sprouts seems to have its sights set on becoming a national retailer capable of competing with the Austin-based chain.

Today, most Sprouts stores are located in the Western and Southern US. But the chain is planning to break into new states and regions where it doesn't have a presence, particularly in the Midwest and Northeast, CEO Jack Sinclair said on the company's third-quarter earnings call on Wednesday.

"We're going to get to a lot more states over the next year or two," Sinclair said.

Sprouts' comparable sales growth slowed during the third quarter as some consumers pulled back spending, the company said this week. Still, analysts at UBS wrote on Thursday that Sprouts has ways to lure in customers as the economy worsens, such as a growing line of private-label products.

I went to Sprouts to see what shopping there is like — and what it brings to the table as it expands.

I visited this Sprouts store in Burtonsville, Maryland.

The entrance to a Sprouts Farmers Market store

The entrance to the Sprouts store in Burtonsville, Maryland. Alex Bitter/BI

Located near Washington, DC, Sprouts opened this store in January 2024 — apparently part of the company's push toward into the Northeastern US.

Outside the entrance was this display of pumpkins and dried corn.

Pumpkins and dried ears of corn sit in a display outside Sprouts Farmers Market

This display of pumpkins was to the left of the main store entrance. Alex Bitter/BI

I visited the store in October, so Sprouts was promoting its selection of pumpkins and other fall-themed produce.

The miniature pumpkins were particularly cheap at $0.25 each.

On my way in, I saw this sign promoting Instacart's smart shopping carts.

A sign at Sprouts promotes Instacart's Caper shopping carts with the slogan "Save Time. Increase Savings."

Sprouts is one of the retailers using Instacart's Caper carts. Alex Bitter/BI

I could've used one of Instacart's Caper carts to shop at Sprouts. The carts sense what you put in them and keep a tally of your grocery bill. They also allow you to find coupons and discounts.

I wanted to try Sprouts' own checkout, though, so I opted for an old-fashioned cart.

This is one of Sprouts' small-format stores.

An aisle of bulk grains, nuts, and other dry groceries at Sprouts with a cart sitting in the middle.

When I walked in, this Sprouts store felt a little smaller than the average supermarket. Alex Bitter/BI

The average legacy Sprouts location is about 30,000 square feet. The store I visited is about 23,000 square feet, according to the developer for the complex it's located in.

Smaller-format grocery stores have become popular lately, with chains from Aldi to Whole Foods opening more compact stores than the typical 40,000-square-foot American supermarket.

Instead of produce, meat and seafood were at the front of the store.

A sign above the meat section at Sprouts reads "Meet Your Neighborhood Butcher" and is flanked by outlines of a cow and a pig

Sprouts markets health and wellness claims, such as antibiotic-free meat, in its stores. Alex Bitter/BI

Most grocery stores feature fresh fruit and vegetables immediately inside the front door to help draw in customers.

At this Sprouts store, though, meat and seafood were the first things I saw when I walked in.

There were plenty of plant-based foods at Sprouts.

Meati mushroom-based Breakfast patties sit in a freezer case at Sprouts

These mushroom-based patties were in a freezer immediately inside the entrance to Sprouts. Alex Bitter/BI

I saw these Mycelium-based breakfast patties as I walked into this Sprouts store.

Plant-based foods were well represented throughout the store despite some recent sales declines for brands including Beyond Meat and Impossible Foods.

The fish counter at Sprouts caught my attention.

Fish steaks, including Ahi, swordfish, and rockfish, sit in a cooler at Sprouts

This Sprouts store sold Ahi, Swordfish, Rockfish, Salmon, and other kinds of fish. Alex Bitter/BI

Swordfish fillets at Sprouts were $10.99 a pound — a few dollars cheaper than I had paid a few days earlier at Costco and than I have seen recently at a Whole Foods store near me.

I picked some up. It was good, though not quite as tasty as what I have bought elsewhere.

A Swordfish steak sits wrapped in brown paper in a shopping cart at Sprouts

An employee behind the counter wrapped my swordfish in brown paper for me. Alex Bitter/BI

At home that night, I marinated the swordfish in soy sauce and garlic before baking it. I did the same with my fish from Costco.

Both were good, though the Sprouts fish was a little drier than what I bought at Costco.

Sprouts also had a robust bulk foods section.

Bulk rice sits in dispensers at Sprouts

Bulk food dispensers were in the middle of this Sprouts store. Alex Bitter/BI

Buying granola, rice, nuts, and other dry foods in bulk from dispensers like these is a quintessential part of shopping at health food stores. Sprouts had an aisle full of options at this store, and they were located directly in front of the main entrance.

I also tried this adaptogenic latte mix.

Packets of Laird Superfood Instant Latte coffee sit in a barrel at Sprouts

These packets of latte mix were in a bulk food barrel. Alex Bitter/BI

Sold under pro-surfer Laird Hamilton's brand, the latte was decent when I made it at home later that day.

I finally found the produce section toward the back of the store.

The produce section at Sprouts, including signs above that emphasize the locally grown nature of the products within

Sprouts' produce section emphasized its fruits and vegetables as "farm fresh." Alex Bitter/BI

Signs above the produce emphasized products that were in-season and grown locally.

Signage marketed the sustainability of Sprouts' produce.

 "Certified Regenified."

These squashes were grown with regenerative farming, according to the sign I saw at Sprouts. Alex Bitter/BI

Throughout the store, there were signs and labels like this that emphasized how sustainable the products were.

In the dairy section, I found another robust selection of plant-based products.

Plant-based milks sit in a cooler case with signs above reading "Plant-Based."

Plant-based milk at Sprouts Alex Bitter/BI

Several kinds of nut- and oat-based milk were on offer.

A new products shelf in the center of the store showed that Sprouts is getting in on the protein craze.

Cans of "Clear Protein" beverages, including coconut creme and dragon fruit flavors, sit on a shelf for $4.99 each at Sprouts

Cans of "Clear Protein" were $4.99 each at Sprouts. Alex Bitter/BI

Sprouts seems to be capitalizing on the high-protein trend with these canned beverages. It's far from the only chain getting in on the craze; Starbucks' CEO recently talked about its early success offering extra protein in its drinks.

Sprouts also has a lot of private-label products, such as these freeze-dried fruits.

Packages of dried bananas and mangosteen sit on a shelf at Sprouts

I bought a bag of these freeze-dried mangosteens for $5.79. Alex Bitter/BI

These freeze-dried mangosteen pieces were a nice snack as I wrote this article.

Sprouts felt like Whole Foods — just a bit smaller and a little more 'crunchy.'

Dried fruit from Ugly sits in packages on a self at Sprouts

Dried fruit from The Ugly Co. sits on a shelf at Sprouts. Alex Bitter/BI

Whole Foods still sells lots of organic, healthy, and better-for-the-planet foods, even as Amazon has cut prices and integrated the chain into its broader grocery strategy.

Shopping at Sprouts, though, I felt a little more emphasis on healthy foods and upstart brands than I've seen at my local Whole Foods stores lately, from the regenerative agriculture signage to these dried cherries from a brand that finds uses for cosmetically imperfect foods.

Sprouts' prices seemed competitive with those of other stores I shop at.

A sign posted on a cooler door reads "It's here! Sprouts Rewards. Join Today" and directs customers toward a QR code.

Shoppers can get discounts at Sprouts through the grocer's rewards program. Alex Bitter/BI

While I didn't do a thorough comparison, the few items I bought — swordfish for $10.99 a pound and celery for $2.19 a bunch — were as expensive or cheaper than prices I've seen recently at Whole Foods, Costco, and other stores where I shop for groceries.

Sprouts also has its own rewards program, which is free to sign up for.

With a few purchases in hand, I headed for the self-checkouts.

Two mini pumpkins sit on a self-checkout scale at Sprouts

Using the self-checkout kiosks at Sprouts was easy. Alex Bitter/BI

I visited Sprouts in the late morning on a Wednesday, so I didn't have to wait to check out.

Overall, I'm curious to see what Sprouts does as it expands — and competes more directly with Whole Foods.

Business Insider reporter Alex Bitter wears a khaki-colored coat while standing in front of the entrance to a Sprouts Farmers Market Store in Maryland.

The author, outside the Sprouts store in Maryland. Alex Bitter/BI

While the product selection at this Sprouts store wasn't quite as extensive as a typical Whole Foods location, I found plenty of interesting items and a big focus on health. Prices that undercut other retailers also stood out.

That could make Sprouts serious competition as it moves into areas of the US where Whole Foods has a strong presence.

Do you have a story to share about Sprouts or another major retailer? Contact this reporter at [email protected].

Read next

Read Entire Article
| Opini Rakyat Politico | | |