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Sprouts CEO Pushes Stores, Distribution and Loyalty

The grocer plans 42 new stores in 2026 while expanding its self-distribution network and first-party data from the loyalty program.

Photo by Alexander Faé on Unsplash

Jack Sinclair said during the earnings call that opening stores, growing the self-distribution network and learning more about customers through the loyalty program remain priorities. Sprouts has seen modest improvements in traffic and units yet faces an uneven macroeconomic environment. The company focuses on areas it can control, including sharpening value, strengthening local product sourcing, improving in-store experiences, advancing supply chain capabilities and maintaining a strong new-store pipeline. The loyalty program, live chainwide for less than a year, supports first-party data capabilities as a priority for long-term value strategy. Sinclair stated that loyalty and personalization remain important long-term enablers for the business. The company plans to use the data for more targeted media and tailored messaging to prompt product discovery. Digital sales grew more than 12 percent in the second quarter and accounted for approximately 16 percent of total quarterly sales. The Sprouts brand represented 26 percent of total sales. Self-distribution efforts will next bring select private-label items into company-owned distribution centers. Sprouts plans to open 42 new stores in 2026. Consumers are cutting back on the amount of groceries they buy, and there is no relief in sight.

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