TECH NEWS | ANALYSIS
Healthy meal solutions demonstrate strong momentum, and Sprouts continues to increase that offering with health- and attribute-driven meals.
Sprouts left confused about shopping behaviors What worked last year is not really producing this year, and a challenging macro environment is not helping
SPROUTS FARMERS MARKET conducted its affordability test during the first half of the year, producing mixed results. The grocer is using learnings from the test to refine its second-half approach, but a chal- lenging macro environment only adds to the complexity. During the test, Sprouts found most actions drove better unit movement, while broader traffic response developed more gradually than expected. “Our acceleration efforts have identified new tactics to drive sales that should ben- efit us in the second half, and the data we are building is increasingly useful across the business with more in-depth customer behavior and preferences,” Sprouts CEO Jack Sinclair said during the earnings call last week, according to a transcript AlphaSense provided. June proved particularly tough for the retailer in terms of year-over-year com- parisons. In June 2025, a disruption of the natural and organic supply chain sent cus- tomers Sprouts’ way, and the grocer had a strong produce showing for the month,
according to CFO Curtis Valentine. The cyclospora outbreak has impacted how customers shop, and Sprouts has felt an impact. Sprouts’ affordability strategy follows a multi-pillar approach: assortment, price and promotion and personalization. Assortment is showing the most growth. Healthy meal solutions demonstrate strong momentum, and Sprouts continues to increase that offering with health- and attri- bute-driven meals. The grocer prices family meals at $29.99 and all fresh-made salads under $9. Sprouts’ private-label brand has intro- duced innovation in healthy essentials. The company recently launched seed oil-free potatoes, which are now a top category seller, according to President and Chief Oper- ating Officer Nicholas Konat. In terms of price and promotion, the task has proven more difficult in moving the customer. Some efforts produce good basket and unit velocities, but the company needs to learn more about “how we price and how we message,” Konat said.
The third pillar of Sprouts’ affordability strategy involves personalization efforts. Vendor participation in the program just started. “We’re certainly ramping, but it’s in its early stages,” Konat said. “As we build out the capability, as we continue to invest in tech- nology, that will be something we continue to push over the next number of years.” However, Sinclair said the macro environ- ment has been difficult to read. “Clearly, grocery prices are going up,” he said during the earnings call. “Gas prices have gone up and down and they’re clearly putting pressure on. So, we’re trying to sec- ond-guess exactly where this is going to play out.” Valentine said what worked last year simply isn’t working this year. “It’s just a little bit harder,” he said. Lower-engaged customers present the biggest challenge. These shoppers came to Sprouts last year under unique circum- stances but now spread their trips out more and don’t visit at the same frequency as they did in the past. —Bill Wilson
12 SUPERMARKETNEWS.COM SUMMER 2026
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