A Sprouts Farmers Market, Inc. Backgrounder

CFO Amin Maredia outlines the four tenets of Sprouts.

Feb 26, 2014 at 6:08PM

Currently operating in eight states and set to expand, Sprouts Farmers Market (NASDAQ:SFM) describes itself as a neighborhood grocery store specializing in healthy living for less. CFO Amin Maredia joins the Fool to talk culture, margins, growth, and more. A CPA and HBS alum, Maredia joined Sprouts in 2011 after serving at major companies including PriceWaterhouseCoopers, Burger King, and others.

Pursuant to its promise of "healthy living for less," Sprouts focuses on four key areas in its stores: health, selection, value, and service. In this video segment, Maredia explains the grocery chain's approach to retail, and how it brings each of those concepts to life.

A full transcript follows the video.

Companies changing the face of retail
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform, and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Brendan Byrnes: Hey, folks, I'm Brendan Byrnes and I'm joined today by Amin Maredia, who is the CFO of Sprouts. Thanks for sitting down with us today.

Amin Maredia: Brendan, thanks for having us on the show.

Byrnes: Great. I wanted to first start with someone that might not be familiar with Sprouts. Could you give an overview of what makes Sprouts different from other grocers?

Maredia: Yeah. When you think about Sprouts, just think "Healthy living for less." We're a 27,000-square-foot store, which is about half the size of a conventional grocery store, and we sell fresh, natural, organic in our stores. We have all departments in our stores, from our produce department to our bulk foods department, to bakery, deli, seafood, meat, dairy, frozen, our four-star grocery section, as well as vitamins and supplements, as well as health and beauty care products.

The way we go to market is really focus on four things: We're health, selection, value, and service.

To break that down a little bit, when we think about healthy foods, Sprouts is not a grocery store, which just happens to sell healthy foods; it's what we do. We've got 16,000 SKUs in our store, products across every department, and deep penetration of health foods across the store, especially in products like gluten-free, raw foods, vegan foods.

Second is selection. We have a wide selection of healthy foods throughout the store. We're a small format, again, which makes it easy for shoppers to shop. We're not a store that you're going to find "potatoes to patio furniture and tomatoes to TVs." We're a health food store, and that's what we focus on, and we do that well, with a wide selection of health foods.

Third is value. When was the last time you heard "natural and organic" and "value and affordable prices" in the same sentence? That really differentiates Sprouts.

The last thing is service. Our stores are actually, besides being a medium-sized footprint, very low-profile. If you're standing in the front of the store, the middle of the store, or the back of the store, you can see across the store. What that does is allow customers to see our team members, which are our staff at the store, and staff to see customers. It allows for that engagement point, and a high level of service.

That makes it exciting, but at the end of the day, Brendan, no matter how much I describe Sprouts -- and we describe Sprouts to a lot of people, especially in the Northeast because we don't have any stores here today -- when people come to Phoenix and we take them to the store, in about 10-15 minutes, after they walk through the value prices, they've walked through the selection, they've walked through the energy that you feel from the customers in the store and the service that they see, the next comment is, "This is awesome. When are you coming to my town?" That's when you know you're doing something right.

The last example I would use is a customer one, which is when you do a word cloud on social media on Sprouts, one of the biggest words that pops up is "love." When was the last time you heard the word "love" about a grocery store?

Byrnes: Sure.

Brendan Byrnes has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers