Sprouts Farmers Market 2015 Annual Report Download - page 12

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allowed us to rapidly and successfully rebrand and integrate each of these businesses under the Sprouts
banner and on a common platform. As of January 3, 2016, we had 217 stores in 13 states, and are one of
the largest specialty retailers of fresh, natural and organic food in the United States.
In connection with our initial public offering (referred to as our “IPO”), on July 29, 2013, Sprouts
Farmers Markets, LLC, a Delaware limited liability company, converted into Sprouts Farmers Market, Inc.,
a Delaware corporation. As part of the corporate conversion, holders of membership interests of Sprouts
Farmers Markets, LLC in the form of Class A and Class B units received 11 shares of our common stock
for each unit held immediately prior to the corporate conversion, and options to purchase units became
options to purchase 11 shares of our common stock for each unit underlying options outstanding
immediately prior to the corporate conversion, at the same aggregate exercise price in effect prior to the
corporate conversion.
On August 1, 2013, our common stock began trading on the NASDAQ Global Select Market and on
August 6, 2013, we closed our IPO.
Our Stores and Operations
We believe our stores represent a blend of conventional supermarkets, farmers markets, natural foods
stores, and smaller specialty markets, differentiating us from other food retailers, while also providing a
complete offering for our customers.
xStore Design. Our stores are organized in a “flipped” conventional food retail store model,
positioning our produce at the center of the store surrounded by a complete grocery offering.
We typically dedicate approximately 15% of a store’s selling square footage to produce, which
we believe is significantly higher than many of our peers. The stores are designed with open
floor plans and low displays, intended to provide an easy-to-shop environment that allows our
customers to view the entire store. The below diagram shows a sample layout of our stores:
xCulture of Customer Engagement. We are committed to providing and believe we have best-
in-class customer engagement, which builds trust with our customers and differentiates the
Sprouts shopping experience from that of many of our competitors. We design our stores to
maximize customers’ interactions with our team members, as we believe this interaction
provides an opportunity to educate customers and provides a valued, differentiated customer
service model, which enhances customer loyalty and increases visits and purchases over
time.