Sprouts Farmers Market, the Phoenix-based national specialty grocery chain, continues to deliver better-than-expected financial results. To do so, the company’s CEO said it focuses on its core customer base and pays close attention to its competitors, especially Whole Foods Market, which is owned by Amazon.com Inc.
Recently, Amazon and Whole Foods announced a new service that gives customers unlimited Whole Foods' deliveries for $10 a month, a move that is meant to increase the company’s market share in the e-commerce grocery business.
E-commerce has become more and more important to Sprouts’ overall business, with online sales – both pick-up and delivery – growing 25% year-over-year in the first quarter of 2024. In total, e-commerce made up 14% of all Sprouts’ sales in the first quarter of 2024. Sprouts has deals with Instacart, Uber Eats, and DoorDash for its e-commerce and delivery sales.
Despite the growth in e-commerce, Sprouts still keeps an eye on what Whole Foods is up to, Jack Sinclair, Sprouts’ CEO told analysts during an earnings call on May 1.
