Sprouts eyes expansion in the South

Sprouts Farmers Market, Phoenix, has indicated to investors it is looking to expand its reach in the South.

In an Securities and Exchange Commission filing dated Aug. 9, Sprouts highlighted six states as mid-term expansion markets - Arkansas, Louisiana, Mississippi, North Carolina, South Carolina and Florida.

The company has 243 locations in 13 states. In the SEC filing, which included a slideshow presentation prepared for investors, Sprouts targeted 1,200 as its potential store count in 15 years. That number, according to the document, is based on internal projections and an assumed new store growth rate of 14% per year.

Sprouts has 90 locations in California, 39 in Texas, 31 in Arizona, 30 in Colorado, 12 in Georgia, nine in Oklahoma, seven in New Mexico, six in Nevada, five in Utah, four each in Kansas and Alabama, and three each in Missouri and Tennessee.

In the filing, Sprouts lists the traditional grocery store as its main competitor, with 59% of its consumers come from such stores.

Sprouts declined to comment on expansion plans.