With more Americans seeking out organic food and fresh produce, natural grocery chains like Sprouts Farmers Market stand to benefit.
But there’s a lot of competition in the fresh produce lane. It’s not just grocery chains such as Trader Joe’s and Whole Foods battling for market share; Sprouts also needs to compete with other wholesalers including Costco and Sam’s Club.
As a grocery chain focused on natural and organic food, Sprouts’ biggest rival is Whole Foods. The Amazon-owned grocery giant is much larger than Sprouts Farmers Market, with more than 533 stores in the U.S. and a presence in other countries such as the U.K., according to the company’s website.
But Sprouts is quickly catching up as it rethinks its operations, especially as Americans spend cautiously in the face of inflation fueled by higher energy prices.
Now, to take on its rivals like Whole Foods, Sprouts has decided to expand and open new stores in a key region.
Sprouts hoping to beat rivals in these areas
Sprouts has expanded rapidly in recent years. The fresh produce retailer has 495 stores in the U.S., based on data from Scrape Hero.
And customers seem to like the Whole Foods rival. Sprouts’ first-quarter financial results showed a 4% increase in net sales year over year. Foot traffic has risen 11.7% at the grocery chain in the past year, according to Placer.ai.
The grocery store is known for offering fresh produce from farms and organic items at affordable prices. It’s also known for evoking the feel of an open-air market, with local produce on display.
The Phoenix-based store has been on an opening spree, launching more than 30 stores per year since 2024, according to the Phoenix Business Journal.
Sprouts Farmers Market locations
- According to Scrape Hero, Sprout’s biggest markets are in California, Texas, Florida, and Arizona.
- Sprouts says it currently operates in 25 states: Alabama, Delaware, Louisiana, New Jersey, Oklahoma, Texas, Wyoming, Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, Nevada, New Mexico, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington.
And Sprout’s expansion isn’t over.
Getty Images
Sprouts continues its expansion spree
Sprouts is planning to open at least 30 to 40 new stores in New England by 2028, Chief Development Officer Dave McGlinchey told the Boston Business Journal.
The plan is part of its development to expand further north and open 1,000 stores nationwide. However, no details were available about the exact timeline or locations.
More Retail:
- Discount retail giant wins as shoppers change how they spend
- Struggling women’s clothing retailer shutters 171 stores
- Retail giant launches first new home brand in 5 years
Sprouts President and Chief Operating Officer Nicholas Konat said during the company’s fourth-quarter earnings call in February that it would expand to the Northeast and Midwest in 2027 in a “more balanced quarterly spread of new store openings.”
But so far in 2026, its growth has been focused on states where Sprouts locations already exist, according to Grocery Dive.
Sprouts plans to open at least 40 stores in 2026, CEO Jack Sinclair said during an earnings call. According to the company website, it plans to open more locations in Arizona, including in Buckeye and Phoenix; several locations in Texas; in Inglewood, California; and in Bear, Delaware.
It made its debut in New York in January, Sprouts announced. It has also set its sights on expanding in Ohio, Grocery Dive reported.
In general, analysts seem to be in favor of Sprouts expansion plan, with 10 out of 15 analysts recommending a hold rating, according to MarketScreener.
Related: Kroger CEO spots troubling new grocery trend