Is Sprouts going to keep sprouting all over the U.S.?
Phoenix-based Sprouts Farmers Market is planning to open at least 11 new stores in the second half of 2017, even as the retailer eyes new regions.
The natural foods retailer is planning to open new stores in Arizona, Florida, California and other states as it also studies which regions it should hit next.
The Philadelphia Business Journal reported that Sprouts has selected real estate in the Philadelphia area, which would be a new region for the fast-growing chain.
Last month, news broke that Sprouts has been in talks with Albertsons about a possible merger. According to Bloomberg, Sprouts could fetch about $26 a share in a deal, an 18 percent premium to its last closing price. A sale may attract multiple suitors and lead to a competitive bidding process that could potentially push valuation higher, Bloomberg reported.
With the grocery market becoming increasingly competitive and with the growth of organic and natural food sales, big players such as Albertsons and Kroger have been looking for ways to grab more market share.
Last year Lucky's Market, Colorado's independent natural foods grocer, entered into a partnership with Kroger. At the time, Lucky's Vice President of Marketing Ben Friedland said the cash infusion would allow Lucky's to expand much faster nationwide. To date, the company has 24 stores in 13 states.