Here are 1-3 brief analogies for Sprouts Farmers Market (SFM):

• A more affordable Whole Foods Market.
• Whole Foods, but with a stronger emphasis on fresh produce and bulk items.
• Trader Joe's, but with a broader selection of fresh and natural products.

• Fresh Produce: A wide selection of organic and conventional fruits, vegetables, and herbs.
• Meat & Seafood: Responsibly sourced, fresh cuts of meat, poultry, and a variety of seafood.
• Deli & Prepared Foods: Convenient, ready-to-eat meals, salads, sandwiches, and premium deli items.
• Dairy & Alternatives: A range of conventional and plant-based dairy products, eggs, and specialty cheeses.
• Bakery: Freshly baked artisan breads, pastries, and custom cakes made daily.
• Pantry & Packaged Goods: A diverse assortment of organic, natural, and conventional shelf-stable groceries and beverages.
• Vitamins & Supplements: Health and wellness products, including vitamins, dietary supplements, and natural body care items.

Sprouts Farmers Market (SFM) is a specialty grocery retailer that sells primarily to **individual consumers** rather than other companies. Therefore, its major customers are categories of individuals.

Here are three categories of customers that Sprouts Farmers Market serves:

• Health-conscious and Wellness-focused Shoppers: This is a core demographic for Sprouts. These customers are actively seeking natural, organic, non-GMO, and specialty dietary products (such as gluten-free, vegan, keto, or paleo options) to support a healthy lifestyle. They prioritize quality ingredients and products that align with their specific health and wellness goals.
• Value-oriented Shoppers for Natural Foods: While Sprouts offers premium products, it also attracts customers who want to purchase high-quality natural and organic foods but are also looking for good deals and competitive pricing. These shoppers frequently take advantage of Sprouts' weekly ads, promotional sales, and bulk section offerings to get value for their money on healthy groceries.
• Experiential and Discovery Shoppers: This category includes individuals who enjoy the "farmers market" atmosphere and the curated selection Sprouts offers. They are often looking to discover new and unique food products, appreciate fresh, seasonal produce, and seek out specialty items not always found in conventional supermarkets. The shopping experience itself is part of their appeal.

• United Natural Foods, Inc. (UNFI)
• KeHE Distributors, LLC

Jack Sinclair, Chief Executive Officer

Jack Sinclair joined Sprouts Farmers Market in June 2019, bringing over 35 years of experience in retail and grocery. Prior to Sprouts, he served as Chief Executive Officer of 99 Cents Only Stores LLC from 2018 to 2019, and as their Chief Merchandising Officer from 2015 to 2018. From 2007 to 2015, Sinclair was the Executive Vice President of the U.S. Grocery Division of Walmart Inc., where he oversaw all aspects of Walmart's U.S. grocery business across more than 4,000 stores, driving substantial growth through a focus on local assortment and fresh foods. He also spent 14 years at Safeway PLC in London, where he was responsible for operations, merchandising, and marketing for over 450 supermarket and convenience store locations throughout the United Kingdom. His background does not explicitly mention founding or selling companies, nor a pattern of managing companies primarily backed by private equity firms, though he led 99 Cents Only Stores, a discount retailer, and Sprouts had past involvement with Apollo Global Management.

Curtis Valentine, Chief Financial Officer

Curtis Valentine was appointed Chief Financial Officer of Sprouts Farmers Market, effective January 1, 2024. He possesses over 15 years of financial and retail experience, having served in Sprouts' financial organization for more than eight years. His roles at Sprouts included Senior Vice President of Finance (March 2023-December 2023), Vice President of Financial Planning and Analysis (December 2016-March 2023), and Senior Director of Financial Planning and Analysis (May 2015-December 2016). Before joining Sprouts, Valentine held financial management positions across various business units for seven years at PetSmart, Inc. The provided information does not indicate that he founded or sold companies, or that he has a pattern of managing companies backed by private equity firms.

Nick Konat, President and Chief Operating Officer

Nick Konat has served as President and Chief Operating Officer of Sprouts Farmers Market since March 2022. In this role, he oversees the company's store operations, merchandising, marketing, innovation, and supply chain efforts. Konat brings nearly 25 years of retail and brand leadership experience to Sprouts, having previously served as Chief Merchandising Officer at Petco. Earlier in his career, he spent nearly a decade at Target, holding significant merchandising and leadership roles, culminating as Director of Food Operations, Merchandise Planning. He also gained foundational experience in strategy and e-commerce during six years with Accenture.

Alisa Gmelich, Senior Vice President, Chief Marketing Officer

Alisa Gmelich is the Senior Vice President and Chief Marketing Officer at Sprouts Farmers Market. She previously held the position of Chief Brand Officer at Auntie Anne's. With over 15 years of experience in the restaurant industry, Gmelich served as Vice President of Marketing at IHOP, where she was responsible for customer growth strategy, national programs, and menu innovation. Before IHOP, she led a marketing team as Director of U.S. Sales, Field Marketing for Burger King Corporation.

Brandon Lombardi, Chief Legal Officer & Chief Sustainability Officer

Brandon Lombardi serves as the Chief Legal Officer and Chief Sustainability Officer for Sprouts Farmers Market.

The accelerated expansion and maturation of online grocery delivery and pickup services, particularly from large national chains and e-commerce giants like Amazon, coupled with the aggressive strategy of value-oriented grocers (e.g., Aldi, Lidl) to significantly broaden their natural and organic product offerings, poses a substantial threat by intensifying competition in Sprouts' core market and altering traditional shopping patterns.

Sprouts Farmers Market (SFM) operates primarily in the natural and organic food sector, offering a wide selection of fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat, poultry, seafood, deli items, baked goods, dairy products, frozen foods, natural body care, and household items. The company focuses on lifestyle-friendly ingredients such as organic, plant-based, and gluten-free options. Sprouts Farmers Market currently operates in 24 states across the U.S..

The addressable markets for Sprouts Farmers Market's main products and services are primarily within the United States:

• Target Market Opportunity (U.S.): Sprouts Farmers Market estimates its specific target market opportunity, focusing on "health enthusiasts" and "selective shoppers," to be approximately $290 billion within the broader $1.6 trillion "food-at-home" market.
• U.S. Organic Food Market: The U.S. organic food market was valued at an estimated $89.0 billion in 2024. This market is projected to grow to approximately $178.38 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2025 to 2034. Other estimates for the U.S. organic food market size in 2024 include $65.4 billion and $65.55 billion, with a projection to reach $159.04 billion by 2033 (CAGR of 10.35% from 2025-2033).
• U.S. Specialty Food Market: Total U.S. sales of specialty foods and beverages across all retail and food services were projected to reach $207 billion in 2023. These sales are expected to increase to $221.5 billion in 2024, with a projected CAGR of 5.4% from 2023 to 2027. More specifically, the market size of the Specialty Food Stores industry in the United States is estimated at $32.3 billion in 2025.

Sprouts Farmers Market (SFM) is anticipated to drive future revenue growth over the next two to three years through several key strategies:

1. New Store Expansion and Market Penetration: Sprouts Farmers Market plans significant expansion, with targets of opening 35 new locations in 2024 and 37 new stores in 2025, all utilizing a new smaller-store format. The company has a five-year plan aiming for a 10% annual increase in its store network and has a long-term goal of reaching up to 1,400 locations nationwide. This expansion includes entering new geographies, particularly in the Midwest and Northeast metropolitan areas such as Chicago, Boston, and New York. New stores are consistently demonstrating strong financial performance, reinforcing the effectiveness of this growth model.
2. Growth in Private Label Offerings: The company is heavily focused on expanding its private brand portfolio. Sales of Sprouts' store brand products increased by 14% in the third quarter of 2025, now contributing over 20% to total revenue. In the second quarter of 2025, private label products accounted for 24% of total sales. The Sprouts brand is strategically positioned as "better for you, high-quality, and attribute-friendly," differentiating it from traditional grocers' private labels. Sprouts continues to add 300 to 400 new private label items annually, demonstrating a commitment to innovation and differentiation within its own brands.
3. Enhanced Customer Loyalty and Engagement: Sprouts Farmers Market is prioritizing customer acquisition and retention through the rollout of a new loyalty program. This program began testing in the summer of 2024 and is expected to fully launch in 2025, with management anticipating it will drive comparable store sales growth starting in 2026. The loyalty program aims to boost customer retention and repeat purchases by offering personalized incentives and rewards, with early results showing increased customer frequency and higher sales per shopper. The company's growth strategy is centered on its target customers, identified as "health enthusiasts and innovation seekers."
4. E-commerce and Omnichannel Expansion: Investments in digital platforms and strategic partnerships are driving e-commerce growth. Sprouts reported a 17% surge in e-commerce sales in the fourth quarter of 2023, representing 12.4% of total sales, and a 21% year-over-year growth in e-commerce sales in the third quarter of 2025, contributing 15.5% to total sales. Partnerships with major delivery services like Uber Eats, DoorDash, and Instacart are expanding its digital reach and accelerating online sales. These initiatives are aimed at providing a seamless shopping experience and catering to the increasing demand for online ordering and delivery.
5. Product Innovation and Differentiated Assortment: Beyond private labels, Sprouts continues to innovate its product offerings to meet evolving consumer preferences for healthy and natural foods. The company is committed to fresh, natural, and organic products, consistently refreshing its lineup with items that align with current health and wellness trends, such as plant-based proteins, gluten-free snacks, and keto-friendly foods. This dynamic approach, which includes leveraging in-store innovation centers and sampling programs, helps attract new customers and maintains engagement with existing ones.

Share Repurchases

• Sprouts Farmers Market executed share repurchases of approximately $200 million in fiscal year 2022 and $203.5 million in fiscal year 2023.
• In fiscal year 2024, the company repurchased approximately 2.7 million shares for $240.6 million.
• On August 13, 2025, a new $1 billion share repurchase program was authorized, replacing the prior authorization which had approximately $143 million remaining.

Share Issuance

• The number of shares outstanding has generally declined over the past several years, from 0.109 billion in 2022 to 0.101 billion in 2024, reflecting the impact of share repurchases.
• Share issuances primarily occurred under stock plans, with a relatively small dollar amount, such as $1.223 million in the period ending June 29, 2025.

Outbound Investments

• In 2023, Sprouts Farmers Market's investing activities included the acquisition of Ronald Cohn, Inc.

Capital Expenditures

• Capital expenditures were $122 million in 2021, $102.4 million in 2022, $238.3 million in 2023, and $230.4 million in 2024.
• For fiscal year 2025, expected capital expenditures are projected to be between $230 million and $250 million, net of landlord reimbursements.
• The primary focus of these expenditures is on investments in new stores, remodels, maintenance, and upgraded equipment to support initiatives such as the Sprouts branded products program, aiming for approximately 10% annual unit growth.