Sprouts Farmers Market reports revenue growth amid declining comparable-store sales
Sprouts Farmers Market opened 15 new locations in the third quarter, yet the retailer saw its comparable-store sales decline for the third consecutive quarter.
Phoenix-based grocery chain Sprouts Farmers Market reported a 5 percent increase in quarterly revenue to $2.3 billion, driven primarily by the opening of 15 new stores. However, the company struggled to grow sales within its existing footprint, recording a 0.9 percent decline in comparable-store sales—the third consecutive quarter of negative growth.
With plans to open 42 net-new locations throughout 2026, the company is attempting to offset slowing consumer spending through a new pricing strategy scheduled for January 2027. Incoming CEO Nick Konat stated that the current performance levels are not meeting internal targets.
The retailer aims to lower prices on frequently purchased items and introduce more affordable options without relying on aggressive discounting. Industry observers suggest that the company must now align its focus on health-conscious offerings with a stronger value proposition to better compete in the current grocery landscape.