Sprouts Shares Q1 2022 Results, Sustainability Progress

Phoenix, Ariz.-based grocer Sprouts Farmers Market has shared its Q1 2022 results while also giving an update on its sustainability progress.

First covered by Store Brands sister publication Progressive Grocer, Sprouts, which has a collection of own brand and exclusive products, saw a net sales lift of 4% in the first quarter of 2022, as well as a 1.6% increase in comparable-store sales and six new store openings. Sprouts attributes its gains to the strength of its deli meals, growth in grocery, dairy and bakery, and also a pandemic-driven lift in vitamin sales.

For the remainder of 2022, Sprouts said it expects total sales and comparable-store sales growth, 15 to 20 new stores, and capital expenditures between $150 million and $170 million.

As for environmental strides made in 2021, Sprouts reduced its carbon emissions per square foot by almost 10% since 2019, achieved an overall landfill diversion rate of 60%, recycled 500 tons of plastic film, and also recovered 78% of its food waste and made donations to those struggling with hunger. The retailer also made a commitment to improve chicken welfare through reduced stocking density by 2025 and more humane processing through controlled-atmosphere stunning by 2026.

The retailer also reached its goal of sourcing all shell and liquid eggs sold across stores to be from cage-free, organic or free-range farms, including national and store brand eggs.

"I’m very pleased with the meaningful achievements we made on our ESG initiatives in 2021,” said Jack Sinclair, Sprouts CEO. “Our accomplishments reinforce the commitment of our 31,000 purpose-driven team members in caring for each other, our customers, communities, and the planet. We look forward to continuing our progress in the years ahead as we execute on our long-term growth strategy that is rooted in ESG.”

The grocery employs approximately 31,000 team members at more than 370 stores in 23 states.