Sprouts digital sales up 500%
With the pandemic driving more shoppers online, even for grocery, retailers are posting big online sales jumps for the second quarter. Albertsons saw a 276% bump in its quarter and Canadian retailer Loblaw saw a 280% increase in an online sales for Q2.
Sprouts Farmers Market with its 350 locations nearly doubled them, posting a 500% increase in e-commerce sales for the second quarter. The big online bump helped spur a 16% increase in overall sales for the retailer.
The retailer said its buy online, pickup in-store service helped drive the large growth but that home delivery remains six times the size of the pickup business. Overall, Sprouts CEO Jack Sinclair said e-commerce sales during the quarter accounted for 11% of total quarterly sales of $1.6 billion which benefited from a 9.1% comp increase and the addition of six new stores. Sprouts is on track to open 20 stores this year and is looking to reduce the size of stores going forward which is expected to improve profitability by minimizing operating costs and reducing shrink.
“Our strong second quarter performance was driven by the strategic changes we have begun to implement across our business and the continued positive impact on demand from the COVID-19 pandemic,” Sinclair said. “As we head into the second half of the year, our early strategic wins give me confidence in our long-term direction, and our team members’ dedication assures me we will continue to provide our communities and customers healthy food for their families.”
Also interesting in the retailer’s report, Sprouts Farmers Market went all digital with its print advertising, removing print flyers and circulars. Read more on the company’s second quarter at sister publication Progressive Grocer.