Natural specialty: Capturing 'transitional' shoppers who want to eat natural, but can't afford to shop at Whole Foods...
Whole Foods Market is doing an awesome job. But not everyone can afford to shop there. So where do shoppers that want to adopt a healthier diet and lifestyle go without breaking the bank?
One man that thinks he has the answer is Jim Nielsen, COO of retail chain Sprouts Farmers Market, which started in Arizona in 2002 and now operates more than 160 stores in eight states. The mantra is 'helping customers live a healthy lifestyle at an affordable price'.
We're not targeting the top 10%
Nielsen, who featured on one of the panels in the Thursday afternoon session, added: "We're not targeting the top 10%, we're targeting the middle class, transitional customers that want to have a better diet and lifestyle."
But Sprouts is also geared towards how consumers shop today, rather than 50 years ago, he said, noting that many traditional grocery retailers still generate a large chunk of their revenues from low velocity packaged foods or high velocity 'center of store' categories experiencing declining volumes (canned soup, cereal, frozen meals), from stores that are too big and no longer meet shoppers' needs.
Trying to be everything to everyone doesn't work
Sprouts, by contrast, operates stores of around 25,000-28,000 sq ft that focus on fresh perimeter items that help shoppers decide what to have for dinner tonight- instead of how to restock their pantry, he said.
"Trying to be everything to everyone doesn't work," added Nielsen, who said Sprouts has learned a lot from Trader Joe's, a "phenomenal company, really".
