Sprouts boosts sales 22% amidst healthy food trend

Sprouts Farmers Market announced that sales for the year were up 22 percent from 2013, and up 21 percent for the quarter. Consumer interests in eating healthier contributed greatly to top line growth.

In addition, comparable sales growth was 9.9 percent for the entire year, and 8.5 percent for the quarter. At the end of fiscal 2014, Sprouts had 191 stores in 10 states, resulting in unit growth of 14 percent and almost $3 billion in revenue.

Competitor Whole Foods (NASDAQ:WFM) has also focused on expansion in the last few years. The company opened a record 13 new stores in 2014 and expanded into seven new markets. That growth will continue into fiscal 2015, with an expected 38 to 42 new stores.

"This year's outstanding results further demonstrate our belief that consumers' desire to eat healthier continues to build across the country and bolsters our confidence in the power of our model and our ability to successfully grow this company from coast to coast," said Doug Sanders, president and CEO of Sprouts.

The company also announced that Sanders will now serve on the board of directors.

Sanders has been with Sprouts since it began in 2002 and assumed the role of president and CEO in August of 2012.

The company plans to continue its growth through self-funding. Sprouts will reinvest in existing stores to drive sales and support expansion.

Sprouts joins retailers, including non-traditional grocers, that have been adding to their healthier food options in the wake of consumer interest. For example, 7-Eleven launched two healthier snack bars under the 7-Select GO!Smart brand. And last September the company introduced Fresh Foods by Tony Horton, the powerhouse behind the BeachBody P90X fitness program. Even drugstores are getting into the business of healthier foods, such as CVS' Fit Choices snack line.

For more:
-See this Sprouts press release
-See this Sprouts press release

Related stories:
Whole Foods to open 40 new stores
Whole Foods latest retailer to stop accepting checks
Sprouts beats Whole Foods in organic price wars
Whole Foods looks to streamline business processes, increase efficiency
Sprouts Farmers Market, Giant Eagle expand into new markets

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