Hello Team,
I want to express my thanks to each and every one of you who have worked so hard during the challenges this year has presented so far. What I’ve seen from our team is a true demonstration of the Sprouts culture, rooted in respect, inclusion and caring for one another. This culture shines through in everything you do for our customers and for each other. You’ve all adapted to a new way of operating and you remain Everyday Heroes as you serve our customers and our communities, ensuring they have healthy food for their families.
Our second quarter results are in large part due to our team members on the front-line. The entire leadership team remain focused on continuing to support you with enhanced compensation and a safe environment to work.
Second Quarter Results
Our results are as follows: net sales grew 16% to $1.6 billion and comparable store sales were up 9.1%, compared to the same period last year. Sales for the second quarter were very strong, as the demand from COVID-19 continues to favorably impact the grocery industry. Customers continued to consolidate trips to avoid social contact, which resulted in a reduction in traffic but with increased basket size.
As the country continues to practice social distancing, our positive ecommerce trends have remained elevated, up more than 500% from last year in the second quarter. Our rollout of pickup services to all our stores was successfully implemented by early May and grew rapidly throughout the quarter.
Looking Forward
As I mentioned last quarter, our strategy work has already begun and we are continuing to identify and deepen our understanding of our target customer, refine our promotional strategy and marketing approach, and accelerate our ecommerce business. Starting in June, we began to vastly adapt our marketing spend to focus on more digital, social, radio and for the first time, TV, allowing us to target our core customers. This pivot has led to an increase greater than 1,800% across all our digital impressions. Our messaging and promotions are evolving as well to become less about price and more around storytelling. The products we carry are unique and our marketing stories will bring them to life! We’re reaching more customers and this new media strategy will continue to evolve.
From an operations standpoint, we continue to evolve and improve as a company. We’ve already begun to experience shrink improvements from the implementation of Fresh Item Management. For the first time, the Meat Department had a clear line of sight for how to reduce over-production and what products really are the best sellers from an overall cost perspective. Reducing the complexity of stores, merchandising appropriately with the right number of SKUs, and minor fixture changes will result in further savings in the years to come.
The future at Sprouts remains bright, and I look forward to continued improvement as we scale and grow our business together. I want to thank you all again for the work you’re doing to support each other and our communities, from the stores to the distribution centers to the support office. Every role is critical to the success of our business. I’m proud to be part of this Sprouts family and we will all get through this together.
Thank you all again, and please take care of yourselves and take care of your families.
Q2 2020 Fact Sheet
Click here or on the image below to view the Q2 2020 Fact Sheet.
