CEO Amin Maredia of Sprouts Farmers Market announced this past week in a call with analysts that the retailers is uncompromisingly growing Private Brand. According to Maredia the retailer will specifically focus on the deli in order to “enhance our position as a ready to eat destination.”
Maredia said: “Our private label items continue to outpace our company average in both sales growth and comps. We have launched more than 200 new items year to date, already meeting our goal of 2,000 private label items in 2016 and we still have more to come this year.
“And while we’re seeing SKU count growth in private label, our comp is outpacing even our SKU count. So we feel really good about the strategic priorities and how that’s building up sales, margin, as well as giving us more tailwinds to our overall comp.”
“We launched exciting items like our organic kombucha product line, our Sprouts Essential Body Care line and continue to build out our Sprouts Market Corner Deli with more grab and go meals.”
“We continue to roll out our expanded deli offerings into our existing stores as well as in many of our new stores. To date 32 existing stores and 23 new stores… include our expanded components such as salad bars, protein service case, fresh juice, specialty coffee and soup stations. These enhancements continue to be well received by our customers and enhance our position as a ready to eat destination.”