Sprouts partners with DoorDash for grocery delivery
Sprouts Farmers Market (Nasdaq: SFM), the Phoenix-based specialty grocery chain, is the latest supermarket chain to partner with DoorDash Inc. (NYSE: DASH) for grocery delivery and pickup services, the two companies announced.
Sprouts will start offering on-demand delivery through DoorDash in Phoenix in November and will roll it out to other major markets in the coming days and weeks.
Sprouts has 380 stores in 23 states across the U.S.
Sprouts will have more than 20,000 products available to be purchased on the DoorDash platform.
“We are excited to respond to customer demand for fast, convenient delivery of our high-quality better-for-you products that you can’t find anywhere else,” Nick Konat, Sprouts’ president and chief operating officer, said in a statement. “By partnering with DoorDash, more people will be able to access our uniquely healthy assortment and the season’s freshest, most delicious produce.”
Sprouts has tried several different partners with online sales for delivery and pick-up. During the first few months of the Covid-19 pandemic, Sprouts saw its e-commerce sales increase and the company has been able to keep e-commerce a steady part of its business.
During the second quarter of 2022 – the most recent published earnings report by Sprouts – e-commerce accounted for 11.1% of total sales or $177.1 million. That was up 15% from the same quarter in 2021, according to Sprouts CFO Chip Molloy, on the company’s Aug. 3 earnings call.
In September, Bashas’ announced a similar deal with DoorDash. DoorDash has been growing its partnerships with grocery stores, signing a deal with Albertsons in 2021 and expanding that deal to all its brands, including Safeway, earlier this year. In the Valley, consumers can also use DoorDash to shop at Target, Smart & Final and 7-Eleven.
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