Sprouts Farmers Market named Specialty Grocer of the Year

Sprouts Farmers Market’s success stems from a clear strategy focused on a specific health-conscious customer base, a unique store experience and operational efficiency. The Phoenix-based company stays true to its farm-stand roots, delivering a distinctive grocery experience centered around fresh produce and an open, inviting layout. With a curated selection of better-for-you products and a team driven by purpose, Sprouts naturally inspires healthy living. Shoppers can discover the latest in wholesome, innovative offerings crafted with lifestyle-friendly ingredients, including organic, plant-based and gluten-free options.

Sprouts is one of the nation’s largest and fastest-growing specialty retailers of fresh, natural and organic foods. The company employs approximately 35,000 team members and operates 477 stores across 24 states, continuing its mission to make healthy living accessible to all. With its organic, health-conscious options for consumers and its rapid growth, the editors of MMR and Chain Drug Review have named Sprouts Farmers Market their Specialty Grocer of the Year.

The company’s chief executive officer, Jack Sinclair, who brings more than 35 years of experience in retail and grocery to Sprouts, joined the company in June 2019. He has served as a board member of FMI – The Food Industry Association since 2020 and was appointed to the Federal Reserve Bank of San Francisco’s head office board of directors in January 2025. He had previously served on the Los Angeles branch board of directors since January 2021.

When asked about the reasons for Sprouts’ success and growth, Sinclair reveals, “One of my most impactful decisions was bringing absolute clarity to who we are and who we serve — and aligning the entire company around that. Rather than trying to compete for the entire $1.6 trillion food-at-home market, we doubled down on the $290 billion segment of health-minded, selective shoppers who care deeply about what they eat, how it’s made, and its impact on the world. That focus shapes everything we do: our smaller, more efficient stores, our curated assortment and our ‘foraging’ mindset.”

He says that by fully embracing its role as a specialty grocer — pairing farmers-market freshness with neighborhood convenience and the broadest assortment of attribute-driven products — Sprouts positions itself where it can truly win. “That clarity has strengthened decisions across real estate, supply chain, technology and assortment, and it’s a major driver of the growth and profitability improvements we’re delivering today.”

Simple and focused strategy

He adds that the company’s efficiency strategy is rooted in being deliberately simple and focused. Over the next five to 10 years, that means three things:

• Smaller, smarter stores — “Our new stores are around 23,000 square feet, down from roughly 30,000 historically. They’re easier to shop, more efficient to build and operate, and are closer to our distribution centers — allowing us to serve more communities with better returns.” 

• A more advantaged supply chain — “We’re strengthening self-distribution in key fresh categories and continuing to invest in inventory, forecasting and energy management systems. Smaller stores closer to distribution, supported by better technology, means fresher product, less waste and lower costs over time.”

• Digital efficiency with a human touch — “We’ll keep expanding our loyalty program, improving forecasting and labor planning, and making e‑commerce, curbside and delivery — more seamless. The goal is productivity behind the scenes while preserving a fresh, friendly, high-touch in-store experience.” 

“We aspire to be exceptionally efficient in our niche, and we’ll reinvest those savings into serving our customers through freshness, innovation and value.”

Just like any grocery chain, Sprouts faces the need to maintain its competitive edge in the industry. “Our biggest challenge is to constantly understand the key trends influencing our target customers. To stay ahead, we will continue to relentlessly focus on our customer. “We serve health enthusiasts and selective shoppers. We are constantly researching the key issues affecting those target customers.” 

“In addition we keep our innovation engine running. Our foragers review tens of thousands of products each year to find exciting, attribute-driven items — from regenerative and 100% grass fed to no seed oils, high protein and beyond. We lead the industry in how fast we bring emerging brands to our shelves. In fact, Sprouts rotates approximately 7,100 new items annually, meaning roughly 35% of the assortment changes each year. Maintaining this pace and quality of innovation is hard but crucial in keeping discovery fresh and meaningful.”

Staying true to the brand

He notes that the brand keeps differentiating — especially in produce, in Sprouts Brand, in discovery — and by staying true to its purpose of helping people live and eat better the chain can extend its competitive edge.

The chain is also able to maintain its balance of affordability with sustainability and quality for the consumer. “We think about value as quality, health and price together. Smaller, efficient stores create room for value. Smaller stores, proximity to our distribution centers, energy optimization and lower shrink help us operate more efficiently. Those savings allow us to offer strong everyday values, like our viral $5 made-to-order sandwiches or $5 Sushi Wednesdays and many others.”

He adds that sustainability through assortment is also a key. “We prioritize products with lower environmental impact, including organic, plant-based and regenerative options, and we work with suppliers committed to ethical and sustainable practices — across food, vitamins and body care. In addition, quality is non-negotiable. Across our entire assortment we don’t compromise on quality or transparency. Affordability comes from running the business well, not from lowering our standards.” 

“The goal is simple: Customers shouldn’t have to choose between what’s good for them, good for the planet and good value.”

When asked about what leadership principles help guide his decision making at Sprouts, he says, “Focus on the customer we can serve best. We can’t be everything to everyone. Our decisions — from marketing to store locations to assortment — are grounded in serving health enthusiasts and selective shoppers. By staying focused on what our shoppers care most about, Sprouts has earned a meaningful place in their routine. Next one is to do the job in front of you exceptionally well. I often tell young people: Don’t obsess over being promoted; focus on being great at the job you have and good things will happen.”

He adds that Sprouts invests in people and culture. “Our team is our greatest asset. We promote from within, invest in development and create an environment where ideas can move across departments quickly. Helping people live and eat better gives us a clear North Star. And lastly, Sprouts values. The values of Care, Own It, and Love Being Different guide the way we lead at Sprouts.”

Disciplined growth

Sprouts is one of the fastest-growing specialty grocery retailers, now with 477 stores across 24 states, and Sinclair says he sees “a long runway ahead.” He comments, “Our growth strategy is disciplined. We follow our customer. We look for markets with a strong base of our core customers — health enthusiasts and selective shoppers. Right-sized, high-return stores: New stores are about 23,000 square feet, with a simple, intuitive layout that highlights fresh produce and discovery. Our format has strong economics that support faster, smarter expansion. Proximity to supply chain: We prioritize locations that can be efficiently served by our distribution network, improving freshness and reducing cost. Community fit and impact: We aim to be long-term partners in our communities. That includes job creation, supporting local hunger relief through our Food Rescue Program, and investing in school gardens and nutrition education through the Sprouts Healthy Communities Foundation.” 

“Growth isn’t just about store count; it’s about putting the right store in the right community for our customer,” he adds.

The chain leverages technology to improve operations and customer experience. On the operations side: “We’re investing in inventory and replenishment systems that reduce out of stocks and shrink, especially in fresh. Energy management and store systems help lower our environmental footprint and operating costs. Human Resources and labor tools support better scheduling, training and development for our 35,000‑plus team members.”

Expanded loyalty program

“On the customer side, our loyalty program has expanded nationwide, enabling more personalized offers and better understanding of what our customers value most. We’ve integrated curbside pickup and delivery into our newer store designs with dedicated doors and flows for e‑commerce. Digital tools help us highlight new items, local products, and attribute-driven finds online, mirroring the treasure hunt feel of the store.”

He points out that AI is playing an increasing role with Sprouts’ partner companies and within its own business, helping to drive efficiency as well as stimulate demand. 

Sinclair says the Sprouts Brand is central to its differentiation. “We’ve grown it into the mid‑2020s as a share of sales — not by chasing margin, but by focusing on innovation and attributes our customers care about. Differentiation, not duplication.

“We’re not trying to replicate national CPG brands. In many cases, we deliberately avoid commoditized categories where differentiation is not important. Instead, we focus on unique, trend-forward products. Health and lifestyle attributes.

“Our private label increasingly reflects what our customers seek: organic, regenerative, no seed oils, high protein, plant based and more. Our new Sprouts Brand Kettle Style Beef Tallow Potato Chips is a good example. We have a robust innovative pipeline. We have a multiyear pipeline of Sprouts Brand innovation, adding hundreds of new SKUs each year. That pipeline lets us stay ahead of emerging consumer needs and deepen loyalty. Sprouts Brand allows us to tell our story directly on the shelf — and that will continue to grow in importance.” 

Customer driven 

He adds that what drives the company is its customer base. “Our customers — health enthusiasts and selective shoppers — are on the leading edge of several powerful trends, including attribute-driven shopping. “Customers don’t just shop categories, they’re buying high protein, gluten free, no seed oil, organic, regenerative or 100% grass fed. Our curated assortment and foraging model are built around those attributes.” 

Proof of Sprouts’ distinct position shows up in its product assortment:

• 30% of the store is gluten free.

• 33% non-GMO; 33% organic.

• Over 65% of total assortment is attribute based.

The retailer embraces the Food as Wellness concept. “There’s a growing understanding that what you eat is central to your long-term health. That’s reflected in our strong vitamins and body care department, and in products like macro balanced deli snack packs, clean deli meats and better-for-you prepared foods. Customers want simplicity and excitement. Our Forager Finds destination, innovative produce varieties and unique Sprouts Brand items are designed to deliver that treasure hunt experience. Customers increasingly care how food is grown and how retailers show up in their communities. Our focus on sustainable products, smaller and more efficient stores, food rescue, and investments in school gardens and women’s athletics all deliver on that expectation. These trends align naturally with who Sprouts is. Our job is to stay just ahead of them — making it easier for people to live and eat better,” he concludes.