SFM, a niche supermarket in the United States

Sprouts Farmer's Market

A niche supermarket with a very good reputation in the United States

I just took a look at this company. Don't buy it arbitrarily after reading it, because the previous increase is relatively large, and you need to pay attention to the risks.

Sprouts Farmers Market is a chain supermarket focusing on fresh food, headquartered in Phoenix, Arizona, USA. It offers a variety of natural and organic foods, including fresh produce, bulk foods, vitamins and supplements, packaged foods, meat and seafood, prepared foods, baked goods, dairy products, frozen foods, natural body care and household products. Chinese people like to go to Sprouts Farmer's Market to buy vegetables and fruits. The prices are relatively affordable and healthy. It is called the most down-to-earth treasure house, "sprout supermarket".

The main focus is natural; fresh; organic, and many vegetables are from surrounding farms. Compared with Whole Foods, the quality of vegetables is comparable, but with the price of trader Joes. It is cheap and good, with a very good reputation, and is still actively expanding.

Positioning: Medium-sized shopping mall

Competitors:

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Company growth strategy:

1. Grab the target customer share; the supermarket's main target audience is "health lovers", through differentiation; characteristic competition to obtain more and more loyal customers, develop APP, open subscription and delivery, retain and expand customers; build a self-operated brand

2. Actively expand stores; as of March 31, 2024, SFM currently has a total of 414 stores; the company has started a long-term growth strategy since 2021, focusing on the speed of store expansion, 42 stores will be expanded from 21 to 23, and 7 stores will be expanded in 24Q1; the store expansion speed is the fastest.

3. Open up the fresh food supply chain and do takeaway delivery; position the supermarket as a distribution channel within 250 miles of the center, and as of December 31, 2023, 80% of the stores have completed it

4. Digital transformation improves brand and marketing, and comprehensively digitalizes reforms

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Financial situation:

Gross profit: 38.34%; a year-on-year increase of 2%

Net profit: 6.86%; a year-on-year increase of 37.85%

ROE: 38.68; a year-on-year increase of 33.17%

24Q1

Net profit 114 million; a year-on-year increase of 127.98%;

Revenue 1.884 billion; a year-on-year increase of 10.91%;

Exceeded expectations for eight consecutive quarters

Summary: