Sprouts Farmers Market 2013 Annual Report Download - page 6

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Table of Contents
PART I
Who We Are
Sprouts Farmers Market is a high-growth, differentiated, specialty retailer of natural and organic food focusing on health and
wellness at great value. We offer a complete shopping experience that includes fresh produce, bulk foods, vitamins and
supplements, grocery, meat and seafood, bakery, dairy, frozen foods, body care and natural household items catering to
consumers’ growing interest in eating and living healthier. Since our founding in 2002, we have grown rapidly, significantly
increasing our sales, store count and profitability. With 170 stores in nine states as of February 27, 2014, we are one of the largest
specialty retailers of natural and organic food in the United States.
The cornerstones of our business are fresh, natural and organic products at compelling prices, an attractive and differentiated
shopping experience, and knowledgeable team members who we believe provide best-in-class customer service and product
education.
Healthy Living For Less. The foundation of our value proposition is fresh, high-quality produce, which we offer at prices we
believe are significantly below those of conventional food retailers and even further below high-end natural and organic food
retailers. We believe that by combining our scale in and self-distribution of produce, we ensure that our produce meets our high
quality standards and can be delivered to customers at market leading prices. In addition, our scale, operating structure and deep
industry relationships position us to consistently deliver “Healthy Living for Less.” Based on our experience, we believe we attract a
broad customer base, including conventional supermarket customers, and appeal to a much wider demographic than other
specialty retailers of natural and organic food. Trial visits to our stores allow us to engage with customers while showcasing our
complete grocery offering and differentiated retail format. We believe that over time, our compelling prices and product offering
convert many “trial” customers into loyal “lifestyle” customers who shop Sprouts with greater frequency and across an increasing
number of departments.
Attractive, Differentiated Shopping Experience. In a convenient, small-box format (average store size of 27,500 sq. ft.), our
stores have a farmers market feel, with easy-to-shop floor plans, a bright open-air atmosphere and low profile displays allowing
customers to view the entire store upon entry. We design our stores to create a comfortable and engaging shopping experience
supported by our well-trained and knowledgeable team members. We strive to be our customers’ everyday market. We dedicate
significant floor space in the center of our stores to our produce and bulk food departments, which we merchandise in bountifully
stacked crates and rows of self-service bins creating a farmers market environment. Produce and bulk foods at the center of the
store are surrounded by a complete grocery offering, including vitamins and supplements, grocery, meat and seafood, bakery,
dairy, frozen foods, beer and wine, body care and natural household items. Consistent with our natural and organic offering, we
choose not to carry most of the traditional, national branded consumer packaged goods generally found at conventional grocery
retailers ( e.g. , Doritos, Tide and Lucky Charms). Instead, we offer high-quality alternatives that emphasize our focus on fresh,
natural and organic products at great values.
Customer Service & Education. We are dedicated to our mission of “Healthy Living for Less,” and we attract team members
who share our passion for educating and serving our customers with the goal of making healthy eating easier and more accessible.
Our passionate and well-trained team members engage customers throughout the entire store and provide them with product and
nutritional education. As a result, we believe our customers increasingly understand that they can purchase a wide selection of
high-quality, healthy, and great tasting food for themselves and their families at attractive prices by shopping at Sprouts. Over time,
we believe our customers become passionate about both Sprouts and eating healthy, and we experience growing sales as they
shop Sprouts for a greater percentage of their grocery needs.
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Item 1.
Business