Will Sprouts Farmers Market Get Better?

Sprouts Farmers Market (SFM) is following a compact business strategy. Its stores are smaller than a typical supermarket focusing on fresh food, produce, healthy food, and vitamin supplements.

Sprouts Farmers continues to be well-positioned for today’s growing number of health conscious consumers who are looking to eat healthier at affordable prices as it tries to prove that eating healthy can be affordable.

What next?

Sprouts Farmers recently announced that it will open 27 new stores and expand into three states this financial year.
A major strength of Sprouts is that Apollo Global Management, which is an investment firm, is the majority owner of the brand and it has over $2 billion in cash. Having such kind of financial backing allows Sprouts to expand and compete in today’s competitive market.

Sprouts Farmers Market also has a strong market presence, which is second only to Whole Foods Market. The company is expanding its business by offering special attractive services like online coupons, shopping lists, weekly, monthly deals, etc.

The range of products offered by Sprouts is limited as compared to its competitors, which can limit the options it can provide customers. Also, Sprouts offers products at a higher price as compared to its competitors, which can limit its growth. The rapidly changing customer eating preferences and unforeseen negative economic changes are the key factors that can adversely affect Sprouts’ performance.

However, Sprouts Farmers is working to expand its store network, which can enhance its future financial performance. Sprouts has opened 15 stores in the first quarter of 2015 and is planning to open 27 new stores before the year ends.

Looking ahead, store expansion, ongoing efforts for the betterment of customer experience, and organic product launches will bring customer traffic to its stores. Also, analysts have anticipated a robust next 5 year growth of 20% for Sprouts Farmers Market.


Sprouts Farmers Market has appreciated almost 9% in the past one month, pulling ahead of its 52-week low as investors have realized that the company is making smart moves to grow its financial performance. Hence, it is likely that Sprouts will be able to sustain its strong growth in the future, making it a good investment.
Published on Sep 22, 2015
By Ayush Singh

Copyrighted 2020. Content published with author's permission.

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