Sprouts, Natural Grocers Store Traffic Outpacing Grocery Segment
Small-format grocery stores continue expanding, and the foot traffic at the likes of Sprouts Farmers Market and Natural Grocers is growing as well, according to new data from Placer.ai.
Over the first three months of 2025, store visits at the two grocers have far outpaced traffic of the overall grocery segment. Placer.ai figures show Sprouts Farmers Market store visits grew 11.9% in the first quarter, while Natural Grocers store visits were up 5.9%. Traffic at all grocery stores in Q1 was up 0.8%.
On a month-by-month basis, Sprouts visits were up 13.3% in January, 10.6% in February, and 11.7% in March. Natural Grocers’ visits were up 9.8%, 1.4%, and 6.6% in January, February, and March, respectively. Visits to all grocery stores in January, February, and March, respectively, were +3.8%, -2.1%, and +0.7%.
The Placer.ai report noted that Sprouts and Natural Grocers attract relatively affluent visitor bases. In the first quarter, visitors to Sprouts came from areas with a median household income (HHI) of $96.8K, well above the category average of $81.8K. Natural Grocers, meanwhile, drew visitors with a median HHI of $84K.
“In a grocery market defined by trading down and intensified competition from low-cost outlets such as dollar stores and superstores, specialty chains like Sprouts and Natural Grocers may benefit from their ability to attract health-focused, higher-income shoppers and busy professionals,” Placer.ai wrote in its report.
Private label products may also be playing a role, as both retailers expand their own brand assortment to provide their shoppers with unique products found only at their stores.
Since the start of 2025, Natural Grocers has had a constant flow of new private label products across a range of categories. Additions to its store brand mix include soup, cleaners, pasta and sauces, coffee, beverages, seafood, and Peruvian chips.
At Sprouts, the Phoenix, Ariz.-based grocer, is following 2024 when it debuted more than 300 new Sprouts-branded products with a focus on additional growth this year. During the recent PLMA Leadership Conference, Sprouts CEO Jack Sinclair said the grocer’s continued success with private label will be driven by maintaining its focus on meeting its customers’ needs.
“It was never ‘let’s go from 16% to 30% or 40% (penetration rate).’ It will be what it will be if we bring in great products to the marketplace that differentiate us,” he said. “It was also never a margin play for us. And while we’ve gone forward with this strategy, our share has grown to 24%. We're excited about what we're doing with the Sprouts brand.”
In terms of future growth, the health and beauty space provides that opportunity for Sprouts, Sinclair said. The retailer’s Real Root line, which includes products such as shampoos and soaps that launched in the back half of 2024, is performing well, the CEO said.
“I think there's an opportunity for us to go further in what we're doing in the health and beauty space, and with the idea of healthy from the outside in as opposed to healthy from the inside out,” Sinclair said. “We've got a bit of work to do on that, but I think there's some opportunity for us in that space.
