- Sprouts Farmers Market said it will open 11 locations during the second half of 2017, after already committing to 21 for the year, according to Progressive Grocer.
- The 11 additional stores will be opened in Clairemont, Calif.; Diamond Bar, Calif.; Las Vegas; Memphis; Mesa, Ariz.; Nashville; Newark, N.J.; Palm Harbor, Fla.; Redlands, Calif.; Reno, Nev.; and Yuma, Ariz.
- The natural and organic retailer has not announced when these new 11 stores will open.
At a time when retailers such as Kroger and Whole Foods are scaling back on locations, Sprouts will build 32 more stores this year, adding to its 260-plus stores across 15 states.
Sprouts seems to be the shining star of the grocery world lately, due in large part to its rumored merger with Albertsons. The owner of Safeway, Jewel-Osco and its namesake brand would benefit from Spouts' presence is natural and organic foods, while Sprouts would benefit from Albertsons financial heft and nationwide reach.
Even without a deal, analysts are bullish on Sprouts and believe store growth will only add to its value. In its latest earnings report, the company reported a 14% increase over the previous quarter and a 6% increase over the same period last year. Net sales reached $986 million in Q4.
Sprouts isn’t the behemoth Whole Foods has become so there’s more room to grow, but by taking it slow, the grocer seems to be catching up as the place to go for natural and organic foods in the eyes of consumers. It's not a surprise that the chain could be a target of bigger retailers looking to grow their footprint in areas where Sprouts excels to help them better address changing consumer preferences and tastes.