Sprouts Farmers Market: A Case Study

Sprouts operates within the grocery store industry which ranges from very small and local grocery stores to large and independent supermarkets. Sprouts however believes that they are one a of kind and have a few competitive strengths that include: “Comprehensive fresh, natural and organic product offering at great value, resilient business model with strong financial performance, a proven and replicable economic store model, significant new store growth opportunity supported by broad demographic appeal and lastly a passionate and experienced management team with proven track record.”

Every retail location carries a variety of products that distinguishes it from other stores in the same chain. Not surprisingly, it is difficult to achieve economies of scale. Supply Chain Mackey describes his consumers as being “part of a cult”. Whole Foods believes that the company’s emphasis on perishables and locally-sourced produce differentiates their stores from run-of-the-mill supermarkets and attracts loyal and devoted customers. However, “fresh produce” is one of the most challenging product categories to operate due to limited product shelf life and high cost of spoilage. Whole Foods has tried to circumvent most of the problems inherent in supplying fresh produce to its stores by sourcing locally and having short and flexible supply chains. In the case of fruits and vegetables, Whole Foods has buying relationships with local farmers who supply the store with seasonal produce. Thus, if one farmer is unable to produce a sufficient amount of yellow corn or heirloom tomatoes, the shortfall can be made up by another farmer. Although challenging to perfect, these short supply chains are agile and difficult for other big retailers to duplicate.

Sprouts Farmer’s Market, an organic and natural grocery retailer, came about through the creation of the Boney family fruit stand in Arizona that became a market called Henry’s that expanded into Texas. Originally, they sold it to a group called Wild Oats, but Wild Oats eventually was sold to Whole Foods. The Boney family continued to develop a new natural market that was the first version of Sprouts and after they expanded into Texas and California, they combined with Henry’s again and a group called Sunflower under the umbrella of Apollo Management to become Sprouts as it is today and has been available for public trading since 2013. As of today, Sprouts has over 275 stores, launched their mobile couponing venture last year

Whole Foods needs to increase the number of stores that they have throughout the country and work on expanding their product line to as many natural and organic products as they can manage within their

Sprouts Farmers Market is a very health conscious store that has been around for the past fourteen years and is becoming wildly popular. It is a grocery store that is trying to help people be more conscious of what they are eating and how to eat healthier. They do this by not selling the popular brands that other grocery stores have but by making their own. While Sprouts itself has not been around very long, Henry Boney started the legacy when he started selling at a fruit stand, in San Diego, in 1943. Sprouts Farmers Market has been around since 2002 when it opened its first headquarters in Phoenix, Arizona. They then opened their first store in Chandler, Arizona. Being a farmer’s market, with so few being around, Sprouts quickly become popular and was able to open more stores around the United States. In 2009, Sprouts was able to open twenty-three new stores in only a twenty-three-month time frame. In 2012, Sprouts and Sunflower merged under Apollo, making it one of the largest natural food grocers in the United States. By 2015, sprouts had opened 200 stores from coast to coast along the United Sates. By 2011, Sprouts had combined with Henrys Farmers Market, Sun Harvest Market, and Sunflower Harvest Market ("History." Sprouts Farmers Market).

These percentages and/or net sales would be linked to new store openings and moving into other markets thus increasing sales, which is part of Sprouts initiatives for expansion.

With 24 shops and thousands of team members now, Harris Farm Market was opened since 1971 by David & Cathy Harris in Villawood. The couple wants to do something greater than just fresh food selling. The fresh food offers nutrients to our bodies, and joy to our taste buds.

Purchasing produce from the farmers’ market ensures that you are directly supporting local farmers, bakers, and artisans, while still not going over your weekly grocery budget. I’d say that is a win-win.

Over the last few decades there has been a huge change in operations. This change has occurred due to the demand for time consuming goods to be delivered faster and faster to the public. The growing population wants goods quicker and more efficiently than ever before; Panera Bread would be

Whole Foods Market Inc. is known as America’s healthiest grocery store. The company has been recognized as “Most Admired 2015 Companies” and “Top 100 Companies to Work For” by Fortune for eighteen years, stating, “The supermarket chain has redefined grocery shopping in the U.S”. The establishment has been also been ranked at number 3 on the list of America’s most reputable companies in the retail industry. The recognitions and awards represent the decades of passion and dedication of the Whole Foods Market’s

The origin of Whole Foods Market began as a small natural food store under the name Safer Way Natural Foods in Austin, Texas, in 1980. As interest in the natural food movement quickly grew, Safer Way soon merged with another local natural grocer. This union was called Whole Foods Market (“Newsroom,” 2015). Though the company started with a mere 19 employees, attraction to this new idea grew rapidly, and it was not long before the company began to build a chain of stores through several acquisitions. Due to the increased interest in natural foods nationwide and very low competition at the time, Whole Foods Market began acquiring food stores all over the nation throughout the 1990s. By 2004, the company had expanded internationally to Canada and the UK “Newsroom,” 2015). Today the company has 414 stores in the US, Canada, and United Kingdom, and approximately 88,000 team members (“Newsroom,” 2015).

The Wytheville Farmers’ Market (WFM) is more than a market – it is an experience enjoyed by more than 6,000 customers annually! Our customers, which are comprised of locals and out-of-town visitors, also do additional shopping at local businesses after they stop at the WFM. The WFM has increased public awareness about the benefits of shopping locally, which serves as an important tool for economic growth for all local businesses. The WFM would like to collaborate with you even further via our farmers’ market sponsorship program.

1.2 Executive Summary Whole Foods Market, Inc. is been respected as a pioneering company for their quality values, a commitment to community and eco-friendly awareness, a healthy growing model and widely admired employment performs. Nevertheless, the business has confronted current problems as a consequence of the economic recession, growing competition, and difficulties from acquisitions. To renew the company from past lows in its hardest year in history, Whole Foods Market must reconsider its expenses, relocate its development strategies, and encourage its brand to participate for the falling customer spending dollar. Throughout the fluctuations in strategic initiatives it’s imperative for the business to preserve Whole Foods Market’s core values and its brand image integral.

The Farmory wants to transform the local food system. The Farmory will offer organic vegetables to the community year round, for an inexpensive price compared to the organic food sold at grocery stores. Not only does the Farmory want to help the local community by selling fresh produce in a place where there isn’t any store in walking distance, they also want to help members of the community grow their own food by showing them how it is done. I agree with what the Farmory is trying to accomplish, as it agrees with a lot of my values.

Whole Foods Market began in 1970 as a local supermarket. Over the past 31 years, Whole Foods Market has grown from a single store in Austin, Texas, to becoming one of the worldwide leaders in providing consumers with natural and organic foods. They have grown to over 300 stores in both North America and the United Kingdom. (Whole Foods Market, Inc., 2011) This report examines the chief elements of the strategy that Whole Foods Market has put into place. Also, it uses past financial data to provide an assessment of the condition of the company going forward. Those assessments include recommendations of future actions, along with concerns I have about the way the company is currently operating and some difficulties that may be on the way.