How Sprouts Farmers Market Is Powering Growth Through E-Commerce

Sprouts Farmers Market, Inc. SFM is advancing its omnichannel strategy by expanding digital reach and operational efficiency. Partnerships with Uber Eats, DoorDash and Instacart have accelerated online visibility, driving 21% year-over-year growth in e-commerce sales in the third quarter of 2025, which now account for 15.5% of total sales. This followed a 27% increase in the preceding quarter, highlighting steady digital momentum.

This sustained expansion signals that Sprouts Farmers’ investment in digital platforms and third-party partnerships is resonating with its target audience, particularly health-conscious shoppers seeking convenience, private-label offerings and seasonal innovation. Management noted strong performance across all digital partners, suggesting improved operational coordination and more effective fulfillment.

The integration of online and in-store channels has enabled faster inventory turnover and data-driven merchandising decisions. The recent rollout of the Sprouts Rewards loyalty program further strengthens this ecosystem, enabling the company to identify shoppers across platforms and personalize offers. Early results show increased customer frequency and higher sales per shopper.

Sprouts Farmers has been implementing several initiatives centered on innovation, customer experience, and targeted marketing supported by everyday competitive pricing and technology. The company’s growing self-distribution capabilities in fresh categories such as meat and seafood are designed to strengthen fulfillment efficiency and product availability, which enhances the digital shopping experience and order reliability.

What the Latest Metrics Say About Sprouts Farmers

Sprouts Farmers, which competes with Walmart Inc. WMT and Target Corporation TGT, has seen its shares drop 46.2% over the past year compared with the industry’s decline of 16.9%. While shares of Walmart have rallied 21.8%, Target shares have declined 40.5% during the same period.
 

From a valuation standpoint, SFM's forward 12-month price-to-sales ratio stands at 0.80, higher than the industry’s ratio of 0.24. SFM carries a Value Score of B. Sprouts Farmers is trading at a discount to Walmart (with a forward 12-month P/S ratio of 1.12) but at a premium to Target (0.39).
 

The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings per share implies year-over-year growth of 14.3% and 40.5%, respectively. 
 

Sprouts Farmers currently has a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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