Sprouts CEO targets controllable areas to improve performance

Sprouts Farmers Market recorded a 5% increase in net sales during its second quarter 2026, while comparable-store sales dropped by 1%. The results, released Wednesday during an earnings call, were described by CEO Jack Sinclair as “in line with expectations.” New store openings drove the top-line growth, but the dip in same-store sales partially offset that momentum. The produce section, which serves as the focal point in every Sprouts store, remains a central feature of the shopping experience.

The grocer is preparing for a larger expansion. Sinclair stated that Sprouts plans to open 42 new stores in 2026. That target is slightly ahead of the original guidance of at least 40 new locations, a figure that indicates confidence in the company’s growth pipeline even as shoppers face an uneven macroeconomic environment.

Supply chain expansion and private label growth

Sprouts is also expanding its self-distribution network to support this growth. Konat noted the opening of a meat distribution facility in Northern California during Q2. This facility helps support the company’s goal of ensuring fresh meat is available at around 85% of its stores through its own distribution centers. The company has previously focused on produce and meat for this initiative, and now aims to bring select Sprouts brand items into those same centers.

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The company’s private label work is also paying off. Valentine reported that the Sprouts brand once again outperformed the rest of the business, representing 26% of total sales. This performance suggests a strong consumer preference for the store’s own products over generic alternatives.

Loyalty program and digital performance

Digital sales continued to perform well, growing more than 12% in the quarter. They accounted for approximately 16% of total quarterly sales, according to Valentine. This growth highlights the importance of the company’s e-commerce strategy in the overall mix. The grocer’s focus on digital channels seems to be resonating with a portion of its customer base.

The loyalty program has become a key tool for gaining customer insights. Sinclair said building out first-party data capabilities remains a priority. The company plans to use this data to improve communication with customers by sending targeted media and tailoring messaging to prompt product discovery.

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“Loyalty and personalization remain important long-term enablers for the business,” Sinclair said. “As consumer behavior evolves against this uneven macroeconomic backdrop, we continue to see progress. Our acceleration efforts have identified new tactics to drive sales that should benefit us in the second half.”

For shoppers, this strategy signals a shift toward tighter inventory management and personalized messaging rather than generic price cuts. By leaning into a loyalty program that has been live for less than a year, the chain is attempting to bridge the gap between its fresh produce focus and the digital-first habits of modern consumers. It also implies the company is willing to experiment with messaging to find what sticks in a difficult retail climate.

Sinclair reiterated that the grocer is prioritizing “areas we can control” as it handles the broader economic setting. The focus includes sharpening value, strengthening local product sourcing, improving in-store experiences, and advancing supply chain capabilities. These steps are intended to build a more resilient business model that can withstand market fluctuations. The company remains optimistic about the second half of the year as it executes on this plan.