Sprouts Farmers Market Inc. opened its 38th store in Arizona on Wednesday less than five miles from three others — but the company’s executives aren’t afraid of over-saturating the market.
The new store at 8787 N. Scottsdale Road in Scottsdale is just under three miles from another store at Shea Boulevard and 92nd Street; four miles from a store near Paradise Valley Mall; and under five miles from the Sprouts on Camelback and Miller roads east of Old Town Scottsdale.
Even with those three nearby stores, Sprouts Chief Development Officer Ted Frumkin said the grocer had a void in the market that the new Scottsdale store fills.
Sprouts (NASDAQ: SFM) is notorious for its use of data and analytics to make business decisions. Frunkim said the company keeps track of how far its customers travel to its stores.
In recent years, some of its trade areas, including the ones in Scottsdale and Paradise Valley, have been getting tighter, so to best serve customers, Sprouts opened this new store near Gainey Ranch, Frumkin said.
“Growth markets never get saturated,” Frumkin said.