Sprouts Farmers Market calls produce “the heart of our stores.” It gives produce about 20 percent of the selling floor and puts it in the middle, where other grocers put aisles.
Now here is the number from its own annual report.
Produce was about 25 percent of sales when the company went public in 2013.
In 2025 it was about 17 percent.
Produce now takes up more floor space than it generates revenue.
That is not a failure. It is the whole strategy, and it explains why this company earns a gross margin roughly 15 points higher than Kroger.
The vegetables are not the product. The vegetables are the reason you walk in.