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Alex Bitter/BI
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Alex Bitter/BI
Sold under pro-surfer Laird Hamilton’s brand, the latte was decent when I made it at home later that day.
Alex Bitter/BI
Signs above the produce emphasized products that were in-season and grown locally.
Alex Bitter/BI
Throughout the store, there were signs and labels like this that emphasized how sustainable the products were.
Alex Bitter/BI
Several kinds of nut- and oat-based milk were on offer.
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.
Alex Bitter/BI
These freeze-dried mangosteen pieces were a nice snack as I wrote this article.
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.
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.
Alex Bitter/BI
I visited Sprouts in the late morning on a Wednesday, so I didn’t have to wait to check out.
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 abitter@businessinsider.com.
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