Is Whole Foods Being Replaced by Sprouts?

For years, Whole Foods has been the go-to destination for health-conscious shoppers, but a new player is making waves in the space: Sprouts Farmers Market. With 440 stores across 24 states and plans to open at least 35 more in 2025, Sprouts is positioning itself as a major competitor in the natural and organic grocery sector.

In theory, you can invest in a piece of Whole Foods if you purchase Amazon stock - all of Amazon's businesses are bundled under one ticker symbol AMZN - and Sprouts if you buy SFM. Amazon is currently trading around $190 per share and Sprouts at $150. 

Unlike Whole Foods, which has expanded significantly under Amazon’s ownership, Sprouts is taking a more strategic approach. The company is opening more locations but scaling down store sizes—from 30,000 square feet to 23,000—to cut building and maintenance costs while maintaining a curated product selection. And the numbers back up their strategy: in Q4 2024, Sprouts reported $2 billion in net sales, with an impressive 11.5% same-store sales growth.

One key factor driving Sprouts’ success? Smoothies. As consumer interest in health and wellness surges, Sprouts has leaned into the trend by investing in in-store smoothie bars and grab-and-go options. According to a Grocery Dive report, this move is resonating with shoppers who once turned to Whole Foods for fresh, on-the-go options.

Investors are taking note, too. Sprouts’ stock has surged 643% over the past five years, and BlackRock now owns over 13% of the company, signaling strong confidence in its continued growth. The outlook for 2025 remains bright, with projected net sales growth increasing from 10% to 12%.

With a focus on health-conscious convenience, streamlined store formats, and strategic expansion, Sprouts isn’t necessarily replacing Whole Foods—but it’s certainly giving it a run for its money.

Should your brand be in Sprouts?

Beyond its financial success, Sprouts is also positioning itself as a launchpad for emerging brands—much like Whole Foods once was. The company runs a 90-day innovation program that gives up-and-coming products a shot at landing a permanent place on its shelves. Recent participants include Jonny Pops and Unwell, while alumni like Nguyen Coffee Supply have gone on to secure long-term retail space.

For brands looking to break into Sprouts, nailing sales operations is key. Cameron McCarthy from WeStock has a short and sweet informative video on how to succeed in the program, and if you need help streamlining your sales operations, Pantry AI can ensure you’re set up for success.

With a focus on health-conscious convenience, streamlined store formats, and innovation-driven product discovery, Sprouts isn’t necessarily replacing Whole Foods—but it’s proving to be a serious contender.