Sprouts sprouts, despite deflation

Phoenix-based Sprouts Market reported net sales of $1.1 billion for the 13-week first quarter ended April 2, a 14 percent increase from the same period in 2016. The fresh, natural and organic grocer also reported comparable store sales growth of 1.1 percent and two-year comparable store sales growth of 5.9 percent. Net income of $46 million was flat from the same period in 2016.

“In an industry with continued deflationary challenges, I am extremely proud of the Sprouts team for delivering our 40th consecutive quarter of positive comps, strong new store productivity and new market entries in Florida and North Carolina,” said Amin Maredia, CEO of Sprouts. “Sprouts was the first grocer to combine fresh, natural and organic foods with value prices, and we continue to differentiate through our high level of customer service and unique product offerings. Our focus remains on our strategic priorities of category innovation, developing team members, enhancing the customer experience and investing in infrastructure to support our long-term growth.”

Sprouts opened eight new stores in the first quarter: one each in Arizona, Florida, Kansas and North Carolina and two each in California and Georgia. Seven additional stores have been opened in the second quarter to date, resulting in a total of 268 stores in 15 states.